Netflix Disrupts Its Own Business Model

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Netflix Disrupts Its Own Business Model
Photo by David Balev on Unsplash

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Netflix’s longtime strategy of spending billions to push out a deluge of films will soon slow to a more manageable flow as the streaming giant re-evaluates its priorities, balance sheets and focuses more on making money back on its advertising spend.

Last week, Netflix announced it would lay off some staff as it restructured its film divisions, consolidating its small and midsize picture units. While it’s unclear how many people were laid off we do know the cuts include a couple executives: Lisa Nishimura, former head of standup and original documentaries, and film group vice president Ian Bricke.


Netflix’s film chief Scott Stuber recently told Bloomberg the plan is to make fewer films with the goal of making sure “more titles are of high quality.”

The quantity over quality approach helped raise the streaming service to the height it’s at today, with around 220 million global subscribers. In the early days, when Netflix still sold DVDs by mail, the library was part of the allure; the service promised a wide range of content delivered to your door at a pretty nominal price. Blockbuster sold out of the obscure horror flick that you’ve been waiting for months to see? Netflix probably had several copies and would send one in days.

During the pandemic, when streaming and gaming engagement across the board hit an all time high, Netflix’s strategy was largely the same: give the people as many options as possible to choose from while they were stuck inside and bored as hell. This often meant opening up the back catalog since films and shows stuck in production gridlocks were delayed – and it led to unexpected hits, including older films like “Outbreak” and “Space Jam” seeing a resurgence in viewers.

People still continue to tune into streaming at about the same rate as they did during the pandemic, indicating there’s still an ample audience for Netflix productions.

But the old Netflix strategy of making a bunch of content with limited or no ads attached, and expecting viewers to gravitate towards its productions simply because they are under the big red “N” is not completely viable anymore. After rising to global prominence, now the company wants to focus on driving profitability ever-upward, and in that process it is rethinking the films it produces (it’s also the reason you might not be able to share passwords with your pals in the near future).

To be clear, Netflix isn’t completely slowing its roll. Stuber told Bloomberg in December the streamer planned to release at least 28 films across its big studio, mid-budget and indie divisions over the next year. And that’s not counting the slates of documentaries, non-English, animation or holiday-related films. But in the future, it’s fair to expect that number will dwindle as Stuber pushes his executives to be more judicious in what they green-light.

The focus of its Netflix Originals team was initially to create prestige dramas and premium shows that could rival HBO. Next, the streaming giant moved on to Oscar-bait movies with Netflix accepting a Best Director win for Alfonso Cuarón’s “Roma” in 2019. It later snatched another such win for Jane Campion’s “Power of the Dog” in 2022.

Most recently, Netflix nabbed Oscars for its “All Quiet on the Western Front” remake.This fits in with the quality over quantity theory – if people are going to watch no matter what, why not go for a blockbuster or award-winner and further elevate the brand’s prestige?

Also, if Netflix is making fewer films and slightly downsizing its staff (again, after cuts in May and June of last year), it could look to funnel any remaining cash left over from film production into advertising spend. The company’s newest chief marketing officer, Marian Lee, recently told the New York Times Netflix’s social media accounts have a combined global audience of around 800 million people. That’s a huge, and potentially lucrative, audience.

In 2022, Netflix’s marketing budget swelled to $2.5 billion to reach even more eyeballs. Its ad-supported tier launched in November is growing; at least one million subscribers joined in the first two months.

Lee told the Times she is embracing nontraditional marketing to get people to watch Netflix’s films. This included a LA-based escape room themed around the “Knives Out” franchise, Wednesday Addams-themed TikTok dances, and even promoting its hit characters on the Uber app. It’s working, Lee claimed, noting that “Wednesday” was Netflix’s second most-watched English language show, with 1.24 billion hours streamed in its first month. - Samson Amore

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⏳Top Productivity Techniques for Entrepreneurs

In the busy world of entrepreneurship, staying productive is crucial for achieving success. With numerous tasks (and social media) competing for your attention, it can be tough to stay organized and focused. Fortunately, several proven productivity hacks can help you manage your time effectively and prioritize your workload. These strategies are backed by research and have been used by successful individuals in various fields. In this listicle, we’ll explore five effective productivity hacks, including the Pomodoro Technique and the Eisenhower Matrix, that can improve your work habits and enhance your entrepreneurial efforts.


The Pomodoro Technique

Developed by Francesco Cirillo in the late 1980s, the Pomodoro Technique uses a kitchen timer to break work into intervals, typically 25 minutes long, followed by short breaks. Cirillo named the method after the tomato-shaped timer he used as a university student, and it has since been adopted by many professionals and students to enhance focus and productivity. To implement it:

  • Choose a task to work on
  • Set a timer for 25 minutes
  • Work on the task until the timer rings
  • Take a short 5-minute break
  • After 4 pomodoros, take a longer 15-30 minute break

The Eisenhower Matrix

Named after former U.S. President Dwight D. Eisenhower, this prioritization method helps individuals categorize tasks based on urgency and importance. Eisenhower famously stated, "What is important is seldom urgent and what is urgent is seldom important," which underscores the value of distinguishing between these two aspects to effectively manage time and tasks. This prioritization method helps you focus on what's truly important by categorizing tasks into four quadrants based on urgency and importance:

  1. Urgent and important: Do immediately
  2. Important but not urgent: Schedule for later
  3. Urgent but not important: Delegate if possible
  4. Neither urgent nor important: Eliminate

Time Blocking

Time blocking is a technique used by many successful entrepreneurs, including Jack Dorsey and Cal Newport, to allocate specific periods for different types of work. By scheduling tasks in advance, individuals can minimize distractions and ensure they dedicate focused time to their most important responsibilities. This creates structure and helps minimize context switching. For example:

  1. 9-11 AM: Deep work on top priority project
  2. 11 AM-12 PM: Respond to emails/messages
  3. 1-3 PM: Meetings
  4. 3-5 PM: Administrative tasks

The Two-Minute Rule

Popularized by productivity expert David Allen in his book "Getting Things Done," the Two-Minute Rule states that if a task can be completed in two minutes or less, you should do it immediately. This approach helps prevent small tasks from piling up and cluttering your to-do list, allowing for a more organized workflow.


Batching Similar Tasks

Batching tasks is a technique used by many high-performing individuals, including writer Tim Ferriss, who advocates for grouping similar activities to minimize context switching. By focusing on one type of task at a time, such as responding to emails or making phone calls, you can increase efficiency and reduce mental fatigue.


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LA Startups Supercharging Cars and Dating 🚗⚡💑

🔦 Spotlight

Happy Friday Los Angeles!

EVgo Inc., a leading Electric Vehicle (EV) charging company based in West Los Angeles, has seen substantial growth under CEO Badar Khan. The company now operates over 3,400 fast chargers across 1,000 sites nationwide, strategically placed in high-traffic urban and suburban areas to enhance convenience for EV users. EVgo’s model focuses on owning and managing its charging stations to ensure a seamless experience, reflecting its commitment to supporting the mass adoption of electric vehicles and facilitating the transition to cleaner transportation.

In a different electrifying market, Joe Feminella, inspired by his own successful dating journey, launched the dating app, First Round’s On Me in El Segundo with $5 million in funding. This app differentiates itself by requiring users to schedule a date within 24 hours of matching, and after a soft launch in select markets, it expanded nationwide in 2024. As the dating app market faces criticism over algorithmic practices and premium features, First Round’s On Me aims to offer a more genuine and immediate dating experience. Both EVgo and First Round’s On Me exemplify how companies in different industries are addressing their respective market challenges with innovative approaches to improve user experience and engagement.


🤝 Venture Deals

LA Companies

  • 3DEO, a startup that specializes in 3D printing small, high-volume metal parts, raised a $3.5M Strategic Investment Round from Mizuhio Bank. - learn more
  • Spotter, a startup that underwrites creators and offers AI tools, raised a $7.4M Funding Round. - learn more
  • Cashmere, a lead generation startup for wealth managers, raised a $3.6M Seed Round. Canapi Ventures led, and was joined by Benchstrength, Plug and Play, The House Fund, and Courtyard Ventures. - learn more

LA Venture Funds

  • Crosscut Ventures participated in an $8.9M Series A Extension for Nostra AI, a startup that helps e-commerce businesses improve their website performance by speeding up load times. - learn more
  • Fika Ventures, an eight-year-old Los Angeles venture capital firm, has raised a fourth fund in the amount of $160 million to invest in early-stage B2B startups. - learn more

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      🍵☕️Top 6 Coffee Alternatives for Enhanced Productivity

      In the fast-paced world of startups and venture capital in Los Angeles, maintaining peak productivity is essential for founders and investors alike. As the hustle intensifies, many are seeking alternatives to traditional coffee that not only provide a sustained energy boost but also support overall health and well-being. The following list highlights some of the top-rated coffee alternatives that can enhance focus and productivity while minimizing the adverse effects of caffeine. These options incorporate adaptogens, superfoods, and gut-friendly ingredients, making them ideal choices for those looking to optimize their performance without the afternoon crash.


      Matcha

      Image Source: Jade Leaf Matcha

      Matcha is a finely ground green tea that offers a moderate amount of caffeine, along with L-theanine, which promotes relaxation without drowsiness. This combination can enhance focus and concentration, making matcha a suitable alternative for those looking to boost productivity without the jitters of coffee.

      Popular Brands: ReNude Chaga Matcha (60 mg caffeine), Golde Pure Matcha (60 mg caffeine), Organic Ceremonial Matcha - Teahouse Edition (30 mg caffeine)


      Dandelion Root Coffee

      Image Source: Amazon

      Dandelion root coffee is a caffeine-free alternative that mimics the taste of coffee. It is known for its potential to support liver health and digestion, which can contribute to overall well-being and productivity. The drink can help avoid the acidity and jitters that often accompany regular coffee, making it a gentler option for those sensitive to caffeine.

      Popular Brands: Dandy Blend (0 mg caffeine), Teeccino Dandelion Dark Roast (0 mg caffeine)


      Adaptogenic Drinks

      Image Source: MUD\WTR Masala Chai

      Adaptogenic beverages, which include ingredients like ashwagandha, reishi, and maca, are designed to help the body adapt to stress and promote mental clarity. These drinks can provide a sustained energy boost without the crash, supporting productivity throughout the day. They are often made with superfoods and spices that enhance both physical and mental performance.

      Popular Brands: MUD\WTR Masala Chai (35 mg caffeine), Four Sigmatic Think Coffee (150 mg caffeine), ReNude Chagaccino (0 mg caffeine)


      Golden Milk (Turmeric Latte)

      Image Source: Golde

      Golden milk, made from turmeric, ginger, and milk (or a milk alternative), is a caffeine-free option that can improve mood and reduce inflammation. The calming properties of this drink can help maintain focus and clarity, making it a great addition to a productive morning routine.

      Popular Brands: Golde Turmeric Latte Blend (0 mg caffeine), Blume Turmeric Blend (0 mg caffeine), Four Sigmatic Golden Latte Mix (0 mg caffeine)



      Chicory Root Coffee

      Image Source: Teeccino

      Chicory root coffee is an excellent alternative that satisfies the desire for a warm beverage without caffeine. It is rich in inulin, a prebiotic fiber that aids in digestion and promotes gut health by supporting beneficial bacteria. Chicory coffee has a nutty, earthy flavor and can help control blood sugar levels, contributing to overall energy and productivity throughout the day.

      Popular Brands: Anthony’s Instant Chicory Root (0 mg caffeine), Teeccino Chicory Coffee Alternative (0 mg caffeine)


      Yerba Mate

      Image Source: Guayaki Yerba Mate

      Yerba mate is a traditional South American herbal tea made from the leaves of the Ilex paraguariensis plant. It contains about 40-80 mg of caffeine per serving, which is less than a standard cup of coffee but enough to provide a gentle energy boost. Yerba mate is rich in antioxidants, vitamins, and minerals, and users often report feeling energized without the jitters or crashes associated with coffee. It has a unique, slightly bitter flavor and can be enjoyed in various forms, including loose-leaf tea and pre-brewed options.

      Popular Brands: Guayaki Yerba Mate (40-150 mg caffeine)


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