Netflix Faces Financial Reckoning with Axed Shows and 'Zero Financial Return' Policy

Netflix is implementing drastic measures, including job cuts and the cancellation of projects deemed to have "zero financial return," as the streaming service grapples with declining viewership and a falling stock price. This strategic shift signals a move away from costly content that doesn't directly contribute to subscriber growth.

A significant focus of this restructuring is the potential impact on projects associated with Prince Harry and Meghan Markle, the Duke and Duchess of Sussex. Executives who previously supported their ventures, including a docuseries about their rift with the Royal Family, are reportedly out of their jobs. The company's leadership apparently believes that viewers are unlikely to subscribe solely to watch content featuring Meghan, and there's a push to avoid expensive "royal-linked vanity projects" in favor of finding the next big hit akin to "Stranger Things."

A Netflix insider described the situation as a "huge restructuring," emphasizing that decisions leading to "zero financial return" necessitated these cuts. The insider suspects that the Sussexes' projects were part of this, as the platform's core audience is not expected to subscribe based on their involvement.

The streaming service, known for popular shows like "Squid Game" and "Bridgerton," has faced challenges in attracting viewers to its newer content in recent months. This has led to a scramble to sign up new subscribers and a reassessment of its content strategy.

Several series have been identified as costly flops of the year:

• Agatha Christie's Seven Dials While boasting a strong cast including Helena Bonham Carter and Martin Freeman, this three-part series based on a 1929 novel drew fewer than 20 million viewers in its first two weeks. Despite a 71% 'fresh' rating on Rotten Tomatoes and positive reviews from some critics, audience reception was mixed, with some finding it dull.
• Virgin River (Season 7) This long-running series experienced a 12% drop in viewership for its seventh season, garnering 16.5 million views in its initial two weeks. While the show holds a 66% audience score overall, season seven's score dropped to 56%, with some viewers criticizing it as cliché and overly formulaic. Despite this, "Virgin River" has been renewed for an eighth season, making it Netflix's longest-running scripted English-language live-action series.
• Finding Her Edge (Season 1) Released in January, this Canadian teen drama about competitive ice skating generated hype but only attracted 14 million viewers. While critics gave it an 87% fresh rating, the audience score on Rotten Tomatoes was a lower 50%. Nevertheless, Netflix has renewed it for a second season.
• Something Very Bad Is Going to Happen (Miniseries) This miniseries, executive produced by the "Stranger Things" creators, the Duffer Brothers, garnered 13.32 million views. It received positive reviews from critics (84% on Rotten Tomatoes) but a less enthusiastic audience score of 63%. Despite interest from the showrunner in continuing the story, Netflix has not announced plans for a renewal.
• Vladimir (Limited Series) Based on a novel and starring Rachel Weisz and Leo Woodall, this limited series earned a 75% critic rating and a five-star review from the Daily Mail's critic. However, the audience score was a disappointing 55%, with only 8.6 million viewers tuning in. Netflix has not announced plans to renew the series.
• Free Bert (Season 1) This series, a fictionalized version of comedian Bert Kreischer's life, received solid reviews from both critics and viewers (71% and 70% respectively). Despite this, it struggled to attract a large audience, with 7.93 million views. The show has been renewed for a second season and will be filmed in Atlanta, the same location used for "Stranger Things."