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The Netflix animation department has become the innocent bystander affected by the platform's recent subscription drop in the last quarter. The department is undergoing profound changes due to decreasing subscriptions, including hefty firings and the cancellations of current and upcoming notable series on the platform.
The news of the changes in the department emerged around the same time the quarterly earnings report for the Netflix streaming platform surfaced. Netflix saw its stock plunge more than 30% after highlighting the loss of 200,000 subscribers, which was the first time the platform had seen such a decrease in over a decade. The streamer is looking to reverse the steep decline by cracking down on account sharing, but other pieces aren't helping the streamer function as it envisions.
The Wrap reported that Phil Rynda, Netflix's Director of Creative Leadership and Development for Original Animation, was fired along with several staff members in the department. Along with the firings, the department is seeing the cancellation of notable Netflix shows, including Lauren Faust's Toil and Trouble, Roald Dahl's The Twits, and the heavily delayed adaptation of Jeff Smith's comic book series Bone. The department was once a place for emerging talent and creativity to bloom, but things have shifted to a more data-driven approach, which has prompted the sudden departmental shift.
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One producer, whose show failed to receive renewal by the platform, indicated to The Wrap that there was a shift in the platform's mission. What was once the place of everyone's favorite show altered to focus on what audiences wanted to see, making the numbers far more critical than creativity. Because of this, cancellations followed, despite the acclaim the series may have garnered. Netflix made it clear that decisions, especially cancellations, were made using data, which placed the viewing numbers up against the cost of producing the series. The streamer reportedly wants to direct its focus squarely on series like Boss Baby because of the numbers it has been able to produce.
The approach, however, has been noted for its flaws, which center around the marketing of series in the department. Creators noted that promotional rollouts don't fully begin until a month before the premiere of a series, which are at times never explicitly announced to the public. The timing and lack of overall awareness provide little room for excitement to build, immersing the series in a sea of content, thus making it challenging to discover. This forces creators to become their own advertising machines, which in the long run isn't enough to attract the attention Netflix desires. It's clear that the Kids & Family department lacked a level of needed support, which could have helped most of the cancellations survive a bit longer.
The demising stock plunge is concerning for Netflix because it correlates to a loss of revenue as well. The streamer clearly has a targeted approach moving forward with series like Boss Baby, projects such as My Father’s Dragon, and the renewed adult animation series, Big Mouth and Human Resources. Changing a department that the data indicates is not meeting expected viewership is understandable, but the role Netflix played regarding the matter cannot be ignored.
Source: The Wrap