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Amid lower-than-expected subscriber growth and a subsequent round of around 150 layoffs, Netflix was all everyone wanted to talk about at this week’s Banff World Media Festival, and while streamer bosses stressed Business As Usual, outside sources reported confusing news from headquarters from Los Gatos.
A series of panels and keynotes, including one from Head of Global TV Bela Bajaria, should remind Netflix to the 1,500-strong delegate list of commissioners, executives and journalists that the streamer is still doing what it has always done: commissioning the best producers, writers and directors to make the best shows.
“Back to basics” was the message from Bajaria, who shrugged off the need for a “radical shift” in the streamer ranks. More up-and-comers were also privately pushing the BAU line, arguing that now is the time to cut through the noise and focus on what Netflix has always done best.
But several senior sources from the production community were less sure, reporting confusing messages from Netflix commissioners when it comes to budgets and the types of programming they are targeting.
Executives have reported difficulties related to business matters when determining how much is being offered for a particular show during contract negotiations, a reversal of the era when Netflix was viewed as a pure blank check company.
Bajaria laid out the streamer’s plans to spend $17 billion this year, but stumbled over a question about where that spending will go if growth falls short of expectations, eventually stating that they would move “in parallel.” .
“This moment has been a long time coming,” said one indie chef. “[Netflix] I felt for a long time that they could do whatever they wanted and I think that caused a lot of problems.”
Netflix chairman Kevin Beggs defended Netflix’s “huge subscriber base and dominant” status in the market Orange is the new black Producer Lionsgate TV Group told Deadline that the streamer “may need to be more sensible and disciplined going forward.”
Meanwhile, with stiff competition from Amazon Prime Video and Disney+, as well as AVOD players like Roku, which have also had a presence in Banff, Netflix is taking its time figuring out which direction it wants to go in genres like drama, and sources say it’s not scripted.
The latest round of 150 redundancies (more rumored to be on the way), punctuated by Deadline, some of whom were commissioners, only added to the confusion surrounding certain projects.
Deadline reported a case where a producer had a meeting with a commissioner about a project and hours later emailed them to say thank you, only to receive an absence from that person stating that they had been fired. Many development projects have been canceled according to several.
On the acquisitions side, a senior executive at a distribution house said distributors are now selling shows piecemeal to multiple local broadcasters around the world rather than licensing globally to Netflix — a return to the days before global streamers would have done so six months ago unthinkable.
“It’s clear that Netflix is paying less and claiming fewer global rights,” they added. “Netflix is more careful with money and taking shorter time windows. So if we can make more money selling to, say, local networks in France, Germany and Australia, then we will.”
One executive predicted that Netflix could weather the storm, citing Reed Hastings’ public row over the failed DVD rental spin-off Qwikster that happened a decade ago.
Canadian battlefield
Netflix dominating the conversation at a festival in Canada felt fitting given the nation is the latest arena for the series of regulatory battles the streamer is facing. Canadian government members, producers and trade associations are currently bringing a bill, titled C11, through Parliament that would ensure streamers commission a certain amount of local content and comply with government-set Canadian content obligations (known as CanCon) have to fulfill.
The likes of Canadian Heritage Minister Pablo Rodriguez and Canadian Radio, Television and Telecommunications Commission Chairman Ian Scott were in Banff to advocate for C11, while Canadian industry insiders privately railed against Netflix’s activities in the nation. One said Canada is being treated like a “production services industry,” adding, “If they’re going to take advantage of our country, they have to do shows about Canada by Canadians.”
That can’t be what was in mind in 2019, when Netflix signed a controversial deal with the government that meant it wouldn’t pay taxes until 2023 in exchange for spending CAD$500 million ($383 million) on English- and French-language content in the country. It should also be noted the biggest Canadian series from Netflix, schitts streamwas created by CBC and the streamer didn’t join the show until its third season.
push back
With a similar battle raging in Israel, as Deadline recently revealed, it’s not surprising to hear Netflix is pushing back.
Netflix Canada’s director of public policy, Stéphane Cardin, who used to do the same work for the Canadian Media Fund, recently gave evidence to the Heritage Committee, saying the streamer has spent $3.5 billion on Canadian films and series since 2017 issued.
“We remain concerned about a rigid approach that would simply apply the current regulatory requirements of Canadian broadcast groups to online streaming services,” he said, noting that Netflix would not have the flexibility to meet commitments in areas like news and sports that titles produced or exclusively funded by Netflix would still not qualify.
“This would not create a level playing field, nor would it be fair or just,” he added.
Back in Banff, the commissioners of Peter Frielander’s script series team told an engaged crowd that they are currently criss-crossing the country to meet producers, taking into account market rates to avoid budget inflation that plagues other markets like the afflicted has UK.
The debate reflects the problems Netflix could keep running into as it digs deeper into local territories in search of the next squid game, lupine or money robbery.
More generally, the battle for the streamer to regain its comfortable place on the tree is definitely underway.
“There are so many ways to consume content these days,” mused a senior industry source. “What happens to Netflix in the long run? It’s difficult to say.”