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Thursday, Sep 21, 2023

Netflix Puts Office Space on Market

Streaming giant to sublease 180K square feet in Burbank.

After years of expansion — including setting up its first animation studio in the San Fernando Valley — Netflix Inc. is reducing its footprint as the streaming company places 180,000 square feet in Burbank office space up for sublease. 

The streaming giant will be subleasing space at 2350 W. Empire Ave. and 2400 W. Empire Ave. The reduction will not affect Netflix’s animation studio, which is located at the same media campus.

The move comes after a challenging first quarter in which the company lost 200,000 subscribers, signifying, according to Variety, the first time in a decade that the company dropped subscribers in a quarter. Furthermore, management at Netflix predicts a second-quarter loss of another 2 million subscribers.

The company has also seen itself in the midst of some controversies during the last few months.

In October 2021, employees staged a walkout after the debut of Dave Chappelle’s standup special “The Closer,” in which the comedian performed material that was perceived by some as transphobic. In May, Netflix saw more controversy over transgender jokes with the release of Ricky Gervais’s “SuperNature” special.

Whether or not the negative attention has had an impact, the past few months have seen a continuance of setbacks for the embattled company. In the first half of the year, Netflix’s share price plunged by 71%. The company has also had to lay off nearly 500 employees so far this year.

Despite the tumultuous period, the company continues to lead all streamers by a long shot, with 222 million subscribers. 

Michael Aushenker
Michael Aushenker
A graduate of Cornell University, Michael covers commercial real estate for the San Fernando Valley Business Journal. Prior to the Business Journal, Michael covered the community and entertainment beats as a staff writer for various newspapers, including the Jewish Journal of Greater Los Angeles, The Palisadian-Post, The Argonaut and Acorn Newspapers. He has also freelanced for the Santa Barbara Independent, VC Reporter, Malibu Times and Los Feliz Ledger.

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