Netflix to Change Marketing Strategy Amidst Layoffs

HBO Max and Peacock are each set for release in the coming months and Netflix is already starting to prep for the saturated market place. In a new report from THR, the streaming giant is planning on laying off 15 employees in its marketing department this week after strategies begin to shift at the company. In the past, the streamer has largely focused on individual properties from Stranger Things to The Irishman, You, and beyond. Now, it's being reported the company will place a larger emphasis on the product as a whole rather than the individual pieces of content it distributes.

THR insists the changes come from the office of Netflix chief marketer Jackie Lee-Joe, who took over in July for the retiring Kelly Bennett. It's suggested Lee-Joe feels the company overhired when it comes to the marketing team. The streamer currently has over 6,700 employees around the world, so this round of layoffs amounts to just 0.2 percent of its entire workforce.

With the rise of Disney+ and the aforementioned offerings from WarnerMedia and NBCUniversal, Netflix will reportedly spend over $17 billion on original content in 2020. The SVOD platform's latest SEC filings suggest the company spent over $1.8 billion in advertising during FY 2018.

It's also been reported the company is in early talks to buy MGM and its vast library of movies, including the James Bond franchise. CNBC reported earlier in the week both Netflix and Apple have had preliminary talks to acquire the Beverly Hills movie studio.

Along with other content providers, Netflix now competes with services with free offerings. When Peacock launches later this year, it will carry a free, ad-supported option for those interested in the product. For those looking to upgrade, there will be an ad-free option starting at $9.99 per month. A middle option "Peacock Premium" will be available for $4.99 per month and will allow users access to the entire library and catalog of Peacock Originals while Peacock Free will only carry select episodes of the originals.

HBO Max is set to launch this May while NBC has slated a July 15th release for Peacock.

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