Netflix scraps 100 shows after Hollywood writers’ strike and cutbacks

NETFLIX cut more than 100 shows from its programming last year as the streaming giant reeled from the impact of Hollywood strikes and cut back its spending.

The US company released around 130 fewer films and TV shows in 2023 than in the year before, a decline of 16pc.

It marks a stark reversal of Netflix’s output after it increased original production every year over the past decade. Hollywood was rocked by protracted walkouts by both actors’ and writers’ unions last year, a dispute which shut down productions and forced studios to delay major releases.

Netflix’s output dropped by around a quarter in the second half of the year when the strikes set in, while its release slate in the final three months of the year was the lightest for five years, according to Bloomberg analysis of data from What’s On Netflix.

The figures highlight challenges facing Netflix, which is grappling for new sources of growth amid tough competition from rivals such as Amazon, Disney and Apple TV. Meanwhile surging interest rates pushed up the cost of debt and forced streaming services to rethink their free-spending strategies.

After the release of the sixth and final series of hit show The Crown last month, Netflix is now looking for a new “tentpole” production to draw in more subscribers. However, reduced content at Netflix in part reflects deliberate efforts to make fewer original shows and license more from rivals as the company focuses on quality over quantity.

The news came as separate figures revealed that Britain’s entertainment industry has grown by 50pc since the pandemic as lockdowns fuelled fierce competition in the streaming market.

The value of the UK music, video and games markets grew for the 11th consecutive year to a record £11.9bn – a 7pc increase on last year. That means the sector has grown by 50pc since the last pre-pandemic year of 2019, according to figures from trade body ERA.

The figures highlight the rapid growth of film, television, music and gaming as repeated Covid lockdowns forced Britons to stay home. This also sparked an arms race among streaming services such as Netflix, Disney and Spotify, who were the key drivers of growth in 2023, increasing revenues by more than £800m in a year. Digital services now account for just under 92pc of total revenues across the industry.

Video was the fastest growing area in 2023, up 10pc to £4.9bn as viewers flocked to subscription services. It recaptured its spot as the largest sector, ending a decade of dominance by games.

Ben Drury, the ERA chairman, said: “The entertainment business is defying gravity, delivering 11 straight years of growth regardless of wider economic conditions.”