Netflix is in crisis. Hollywood insiders say it could turn into a huge opportunity or leave executives 'more scared and paralyzed than they already were.'

After losing subscribers for the first time in over a decade, the streaming giant laid off 25 marketing staffers and is reining in its annual content budget.

Insider was told by Hollywood creatives that the crisis will either drive Netflix to create higher quality original content or set off a creative retreat.

The company is still expected to spend as much as $18 billion on content in 2022, but it is pulling back from the glory days of its first decade as an original programming powerhouse.

I miss the days when executives at the company could make a case for their projects and follow their passion.

Now that the company's rise is slowing, the showrunner is worried that people will be more scared and paralyzed than they already were.

The crisis is an opportunity for the streamer, according to a TV agent. They need to be a little bit cautious.

Last week, it was announced that it lost 200,000 subscribers in the first quarter of 2022, and expects to lose another 2 million in the coming months. The streamer attributed its first subscription drop in over a decade to growing competition, password sharing, and macroeconomic factors such as inflation.

Read more about the discussions with Hollywood Insiders here.

The CEO of Business Insider is a member of the board.