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According to sources familiar with the matter, The Wall Street Journal reported Friday that Netflix intends to cut its spending by $300 million this year. The decision is partly attributed to the delay in implementing Netflix’s measures to curb password sharing.

In the company’s first-quarter earnings report, released last month, Netflix stated that its content spending for 2023 is expected to remain around $17 billion annually through 2024. During the first quarter, Netflix’s operating expenses were just under $6.5 billion.

Netflix described its efforts to prevent password sharing as an “evolution” in its business model. When asked about long-term cash flow and margin forecasts during the earnings call, Netflix CFO Spencer Neumann emphasized the balance between revenue growth, margin expansion and reinvesting in the business to capture greater market share.

Additionally, Netflix raised its 2023 free cash flow guidance to $3.5 billion from $3 billion in the same earnings release. The increased guidance reflects the company’s confidence in its ability to generate substantial cash flow.

The cost reduction measures and strategic investments highlight Netflix’s continued commitment to optimizing its financial performance while continuing to deliver high-quality content to its growing member base.