Netflix plans to cut $300 mn in spending this year: Report

San Francisco, May 13

Streaming giant Netflix is reportedly slashing its spending by $300 million this year, including related to hiring.

According to a new report from The Wall Street Journal, one of the reasons behind the spending cut is that Netflix delayed its plans to crack down on password sharing from the first quarter to the second quarter this year.

It means that the revenue Netflix expected from the move is now shifted to towards the second half of the year, the report said.

"The company urged staff earlier this month to be sensible with their spending, including in relation to hiring, but noted that there would not be a hiring freeze or additional layoffs," the report added.

The streaming company launched its crack down on password sharing in Canada, New Zealand, Portugal and Spain earlier this year.

Netflix is finally set to crack down on password sharing in the US this summer.

Netflix originally planned to roll out "paid sharing" in the US during the first quarter this year. The company will now introduce the feature on or before June 30.

It will allow up to two extra members per account, and its fee per extra user varies by country.

The sharing plans are available to members using Standard ($15.49 a month) and Premium ($19.99 a month) subscriptions.

The company launched a new ad-supported plan called 'Basic with Ads' last November. The tier costs $6.99 per month.

Netflix is also upgrading its ad-supported plan in terms of streaming quality and concurrent streams.

In an effort to lower costs, Netflix also conducted job cuts last year.