What this means: Between layoffs, the announcement of advertisements, and subscriber losses, some of the biggest damage Netflix has taken—other than its stock, which is down 70% year-to-date—has been to its consumer and employer brands.
- Internal company affairs now exist in the public sphere: Several tweets about Netflix’s layoffs have gone viral online. Many of those laid off from Tudum were queer or non-white employees, prompting jokes and accusations of discrimination. One former Tudum employee said he was mistakenly re-offered a job only to be notified the offer was intended for someone else with the same first name.
- Netflix has also struggled to produce originals that make a splash with viewers or can be rolled out into franchises. Even shows that do find success—like last year’s “Squid Game,” which was the most-streamed show in history—have left behind little cultural footprint. A quick Google Trends search shows that discussion about the show is nearly non-existent and that it has failed to build an enduring fandom.
The big takeaway: The launch of ad-supported tiers, cracking down on password sharing, and entering categories previously left to competitors makes sense for Netflix’s future. But as it enters a new and difficult chapter, Netflix is having to redefine its brand image—an effort that isn’t helped by public fallout.