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Netflix slashes content budget amid mainstream streaming wars

Netflix slashes content budget amid mainstream streaming wars

Netflix has had a fantastic previous year, delivering major hits including TV shows and movies despite falling spending in 2022.

According to The varietythe streaming giant has set aside a small fortune on content for TV shows and movies, underscoring financial austerity.

The previous year, the company paid less than 4.9%, or $17.70 billion, over the previous year, or just $16.84 billion in cash for content.

Additionally, streamer payments for content obligations for acquiring, licensing and producing content over multi-year periods also saw a drop from the prior year, down 5.7 %, going from $23.16 billion to $21.83 billion.

Steady content spending and other cost-cutting measures, including layoffs and slowing hiring, have led the company to project a “sustained” free cash flow growth trajectory.

“Now that we are a decade into our original programming initiative and have successfully expanded it, we are past the most cash-intensive phase of this build,” Netflix said in its fourth quarter shareholder letter. 2022.

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

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