When Netflix first began getting into the original programming mode, it had a few goals in mind, especially when it came to the type of films it either developed or acquired.
The primary drive was, of course, to find different types of films that could appeal to a variety of subscriber types, young and old, male and female, arthouse and mainstream.
The company was also aware that it wouldn’t have access to the television shows it made its name on forever, and it was only a matter of time before studios like Warner Bros. wanted to reclaim “Friends.”
So Netflix began trying to ramp up its catalog so the cupboards wouldn’t be bare once competitors like Peacock launched.
But there was also another motive at play here. Part of the reason why the company basically gave auteur directors like Martin Scorsese and David Fincher blank checks to make expensive, ambitious passion projects like, respectively, “The Irishman” and “Mank,” to win Oscars.
Netflix wanted the prestige that comes with winning an Oscar, but it also wanted to cement the idea that the company was a friend to filmmakers and a place for cinephiles to find high-quality, daring work.
But it seems that approach might be changing in the wake of the company’s recent stock market stumbles.
In an April earning’s call, the company revealed that it lost 200,000 global subscribers in the first quarter of the year. It has since lost 44% of its stock market value since April, and had to lay off nearly 2% of its workforce.
In other words, while Netflix was once well known for spending its money lavishly, the company is starting to come back to earth. And this recalibration will be apparent in the sort of movies that will be available on the service soon.
Netflix Is Rethinking Its Approach To Movies
The days when Netflix was willing to spend as much as possible to win an Oscar seem to be coming to an end, according to The Hollywood Reporter, which “spoke to multiple sources, ranging from executives to producers to agents with ties to the company.”
Netflix is beginning the shift away from the “green light everything” approach it took to shows and movies for many years. Instead, the company will “focus on making bigger movies, making better movies, and releasing fewer than it previously did at a gluttonous pace.”
As part of the staff layoffs, employees at the family live action film division and the original independent features division, which made movies in the under-$30 million budget range, have been let go.
While Netflix arguably came close to winning the Best Picture Oscar this year with “The Power of the Dog,” it ultimately lost the honor to Apple TV+s’ film “Coda.” That probably hurt, but at least “Dog” helmer Jane Campion won the Oscar for Best Director.
No one is saying that Netflix is giving up on its Oscar dreams; never underestimate how powerful the lure of prestige can be. But what the company wants is big hits that appeal beyond the arthouse, and will no longer give auteurs giant budgets for their visions.
Netflix co-chief Ted Sarandos pointed to the success of the popular Oscar-nominated comedy “Don’t Look Up,” the action-film “Red Notice” and the sci-fi family film “Adam Project,” as the sort of films it’s looking at as a template going forward.
This approach on big films will continue with this summer action thriller “The Gray Man,” a $200 million-plus budgeted film starring Ryan Gosling and Chris Evans and directed by “Avengers: Endgame” team Anthony and Joe Russo.
Netflix
“Small Movies Are Not Going Away”
It’s a bit of a chicken-or-the-egg situation with Netflix.
As Hollywood began focusing more on special effects-driven franchise films, Netflix stepped up as the home for the smaller films, comedy and dramas that were increasingly not being seen in the theaters anymore.
But did Netflix cornering the market on these films create their exodus away from theaters, or did the company see a while in the market and fill it? It’s tough to say for certain.
It’s been argued that Netflix helped keep the romantic comedy alive with films like “Always Be My Maybe” and “To All the Boys I’ve Loved Before.”
The company has pledged to spend $19 billion on content this year, and still plans to have a new movie out every week.
The days when nearly anyone with a movie pitch could likely get a film deal with Netflix are done. But the insiders interviewed by Hollywood Reporter stressed that the company isn’t completely turning its back on smaller-scale fare.
“Small movies are not going to go away,” said one insider, “but they could become more niche and cater to a passionate audience.”
The smaller film division was apparently overstaffed with executives,” according to sources. The company will continue to make films in this vein, but fewer of them, and more strategically, making one film for $20 million instead of two for $10 million.
“The goal will be to make the best version of something instead of cheapening out for the sake of quantity,” says one insider.
In other words, the company is no longer concerned with growth and reputation above all else. Now it has its eye on budgets and profits as well.
