Global online video service (OTT) Netflix tightens its belt.

The Wall Street Journal (WSJ) reported that Netflix plans to cut spending by $3 million (about KRW 4.16 billion) this year.

The move comes as Netflix focuses on expanding its profitability amid fierce competition in the streaming industry.

In particular, Netflix is cutting costs because of the fallout from delaying its password-sharing crackdown, originally scheduled for the first quarter, beyond the second quarter, the sources said.

At an internal meeting earlier this month, the company's management urged employees to carefully decide on spending plans, including hiring.

However, the orders do not mean a freeze in employment or additional layoffs, the sources said.

Previously, Netflix had been looking at layoffs, property reductions, and changes to pay structures for certain job groups to cut costs.

Streaming companies, which have been focused on increasing subscriber numbers for some time, have recently become more focused on profitability.

While most OTT companies are still in the red, Netflix has been in the black for a few years.

During its recent first-quarter earnings call, Netflix raised its free cash flow target for this year to $1.2 billion from $1 billion previously.