Dive Brief:

• Netflix CFO Spencer Neumann said the video-streaming giant is anxious to see an end to ongoing labor strikes in Hollywood, saying they are “not good for the business.”

• “We need to get back to work,” Neumann said during a Bank of America conference Wednesday. “That's what we're focused on…In the meantime, we're managing through.”

• Neumann’s comment came in response to a question from discussion moderator Jessica Ehrlich, managing director of Bofa Securities, about how the labor situation is impacting Netflix’s content strategy and financials. During the wide-ranging talk, the finance chief also said the company’s operating margins, which peaked at 21%, are now “managing in the 18% to 20% range roughly.”

Dive Insight:

Both actors and writers are striking in Hollywood for the first time in more than 60 years, with much of the town currently in a complete standstill and speculation that work stoppage could continue for the rest of 2023, according to Hollywood Reporter.

The situation could be a major problem for Netflix in particular, given that it relies on fresh content to keep its subscriber growth strong, according to a report from Investor’s Business Daily. Still, the company may be in a position to survive the walkouts due to factors such as its deep library of programming and international productions, the report said.

In July, Netflix reported that it generated $8.2 billion in revenue  during the second quarter, an increase of 3% year over year. Net income climbed to $1.48 billion up from $1.44 billion during the same period a year earlier.

“While we’ve made steady progress this year, we have more work to do to reaccelerate our growth,” the company said in a shareholder letter at the time. “We remain focused on: creating a steady drumbeat of must watch shows and movies; improving monetization; growing the enjoyment of our games; and investing to improve our service for members.”

Following Wednesday’s subdued financial forecast, Netflix shares plummeted, diving by over 5%, during afternoon trading, according to Business Insider.