Netflix has begun to scale back its staff and is cutting back on content, amid growing concerns about the future of its business and the future prospects of its video-streaming service.
The streaming giant’s CEO and co-founder Reed Hastings announced on Wednesday that the company would not renew its licensing deal with Universal Studios, the studio behind The Mummy.
The move is part of a trend among streaming companies, which are struggling to keep up with demand and to keep their users happy.
Hastings told the Irish Times that Netflix would be re-engaging with Universal in the future.
“It’s a good day for us,” Hastings said.
“We’re just going to keep doing what we do, and we’ll have a little bit more to offer.”
Netflix is also considering the idea of selling off some of its digital content and focusing more on movies and television.
Hastings said Netflix’s current focus on movies was unsustainable and he wanted to find a way to offer movies that people wanted to watch.
Netflix’s stock is up about 12% in after-hours trading.
The Irish Independent reported that Netflix is looking to sell off some or all of its content, including movies and shows from Universal, Warner Bros. and Paramount.
Netflix said it was not yet in talks with any of these companies.
Netflix is trying to sell a portion of its streaming content to investors, but that process is being hampered by the fact that Universal is suing Netflix over copyright infringement claims made against it in the United States and elsewhere.
Netflix has been under pressure from its own investors over its content and Hastings has said the company will “do everything in our power to preserve and protect the value of the Netflix brand.”
Netflix has said it will launch a “premium” tier of its service that includes content from Warner Bros., Disney, Universal and CBS Corp. The company also said it would “be offering a suite of additional streaming services to meet the growing demand for our content and services.”
Netflix was founded in 2003 by Hastings, former chief operating officer of Time Warner Inc., and other former Warner executives.
The service was acquired by Netflix by Google Inc. in 2006 for $1.85 billion.
Netflix launched a TV streaming service in 2008 and a video streaming service last year.
It has also been looking to get more content to its subscribers, and Hastings said last week that he was considering expanding its offerings.