Bigger, better, less. This is the return of Netflix with which feature film executives, led by division chief Scott Stuber, are struggling to operate as the digital broadcast giant changes course and faces new realities, such as delays. of subscriber growth (lost 200,000 subscribers in its last quarter). and growing competition (the Disney +, Hulu, and ESPN + package now has 205 million combined subscribers, just behind Netflix’s 221 million global subscribers).
The Hollywood Reporter He spoke with various sources, ranging from executives to producers and agents linked to the company, to paint a picture of a broadcast giant trying to recover after a shocking revelation of profits on 19 d April (Netflix has lost 44 percent of its shares). value from that day). “Morale is blocked at the stock level,” says a semi-joke executive. Another executive describes Netflix’s mood right now as “distracted” given the changes.
It’s easy to see why. The company, in response to Wall Street, has taken cost-cutting measures such as cutting more than 150 employees, or 2 percent of its workforce. Television and other parts of the company have received their successes, but a one-time approach is the division of functions. A lot of the cuts have ended with the family live-action film division, and the original independent feature division, which made films with a budget of less than $ 30 million, has also seen your rows cleaned.
As it progresses, Netflix wants to focus on making bigger movies, making better movies, and releasing less than it used to at a glottal pace. “Just a few years ago, we were struggling to monetize the small art film market,” Netflix co-director Ted Sarandos told analysts at the company’s earnings call in April. “Today, we are releasing some of the most popular and watched films in the world. Over the last few months, things like Don’t look up i Red warning i Project Adamas examples of this. “But what this” bigger, better, less “directive means is unclear to those inside and outside the business.
“Small movies won’t go away,” says one privileged person, but they could become more niche and cater to a passionate audience. Another informant agrees, saying production will be reduced, reducing the need for so many executives. “They were overcrowded with executives,” this informant says. Plus, bigger doesn’t necessarily mean more than $ 150 million movies. Expect to see a more subtle change: instead of making two films for $ 10 million, for example, the company will make one for $ 20 million. “The goal will be to make the best version of something instead of making it cheaper in quantity,” says one privileged person. And the streamer continues in the acquisition game, as evidenced by the recent $ 50 million deal for the Emily Blunt thriller. Pain Hustlers.
In his call on Netflix earnings, Sarandos pointed to “big-event movies.” The gray man i Knives out 2 as a way to drive secondary growth. Home Graystarring Ryan Gosling and Chris Evans in a $ 200 million film directed by Avengers: Endgame The duo Anthony and Joe Russo will hit select theaters on July 15 before appearing in the service on July 22. In the meantime, Knives out 2 – The next chapter of director Rian Johnson and star Daniel Craig’s whodunit franchise, for which Netflix signed a $ 469 million deal in March 2021, will be coupled in the fourth quarter of this year. “The next list of the 22nd, we are sure, is better and more impressive than the one of the 21st,” Sarandos told analysts in the April call.
The animation is also under scrutiny, with a disciplined discipline aimed at projects that were in the bubble and also reducing the frequency of releases, although “a new movie every week” is still the goal, either live or in animation.
Movements are a long way from just a few years ago, when movies that cost more than $ 100 million or $ 150 million were rare. It was also the time when Netflix was frequently cited in the media as the savior of the mid-budget film and of basic theatrical elements such as romantic comedies and thrillers. Always be mine maybe, The cabin of the kisses i To all the guys I’ve loved before they became hits, turned their actors into social media stars, and even launched mini-franchises.
The company is also not giving much specific direction right now. “Talks with producers and directors on size and genre will be held in the coming weeks,” says one producer who has a book meeting and is looking forward to the information. But this is an uncertain time for the streaming giant, which could see even more cuts and possible exits from executives, leaving some producers and agents wary. “Am I comfortable bringing them a package right now? No, I’m not,” said a partner. I would go down when Maureen Dowd, in a New York News The profile posted on May 28, asked about the likelihood of senior executives staying and he replied, “Um, the way we’re organized, no one can make that assumption.”
One thing many agree on is that the era of expensive vanity projects on Netflix, whether it’s animation or live action (like Martin Scorsese’s $ 175 million). The Irish), is probably over. “This tendency to do anything to attract talent and give them carte blanche fades,” says one person. As always, there will be exceptions, this is Hollywood, after all, but in essence, this new era seems to be marked by one idea: discipline.
Source: Nielsen Transmission Rankings, August 2020-April 2022; THR research
This story first appeared in the June 1 issue of The Hollywood Reporter. Click here to subscribe.