Netflix tops streaming charts amid content spending decline

Netflix tops streaming charts amid content spending decline

Netflix dominated the streaming wars, delivered top hits, despite content spending decline in 2022.

According to Variety, the streaming giant put aside a small fortune on content for both TV shows and movies, highlighting the financial austerity.

Earlier year, the company forked out less than 4.9%, i.e. $17.70 billion from the previous year, a mere $16.84 billion cash for content.

Moreover, the streamer payments for content obligations for the acquisition, licensing and production of content over multiyear periods also experienced a slump from the previous year, declining at 5.7%, from $23.16 billion to $21.83 billion.

The steady content spending and other cost-cutting measures, including layoffs and slower hiring, led the company to project a “sustained” growth trajectory with free cash flow.

“Now that we are a decade into our original programming initiative and have successfully scaled it, we are past the most cash-intensive phase of this buildout,” Netflix said in its Q4 2022 letter to shareholders.

“As a result, we believe we will now be generating sustained, positive annual free cash flow going forward.”

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