New Delhi: Streaming giant Netflix is reportedly reducing its spending by $300 million this year, which also includes hiring-related expenses. According to a new report from The Wall Street Journal, the spending cut is one reason Netflix delayed its plan to crack down on password sharing from the first quarter to the second quarter this year.
The report added that this means that the revenue Netflix expected from this move has now shifted to the second half of the year. ,Also Read: Zomato CEO’s Car Collections – Check Out List,
“The company earlier this month urged employees to be prudent with their spending, including with respect to hiring, but noted that there would be no hiring freeze or additional layoffs,” the report said.
The streaming company cracked down on password sharing in Canada, New Zealand, Portugal and Spain earlier this year. Netflix is finally set to crack down on password sharing in the US this summer.
Netflix originally planned to launch “paid sharing” in the US during the first quarter of this year. The company will now introduce this feature on or before June 30.
This will allow up to two additional members per account, and the fee per additional user varies by country.
Sharing plans are available for members using Standard ($15.49 per month) and Premium ($19.99 per month) subscriptions. Last November, the company launched a new ad-supported plan called ‘Basic with Adds’. The tier costs $6.99 per month.
Netflix is also upgrading its ad-supported plan in terms of streaming quality and concurrent streams. In an effort to reduce costs, Netflix also cut jobs last year.