Netflix has replaced a string of senior executives after cutting 1,000 jobs last week, with the head of its film division — the executive behind "KPop Demon Hunters" — the latest to go. Investors will be watching whether the company lays out a new content strategy when it reports third-quarter results on the 20th.
Netflix abruptly removed film chief Dan Lin on the 19th, The Wall Street Journal reported. The move came days after the company cut 1,000 positions, or about 6% of its workforce, and dismissed Chief Content Officer Bela Bajaria. Netflix began drawing up the restructuring plan in the second half of last year. Management initially weighed cutting as much as 10% of its staff before settling on 6%, according to the report.
On the 15th, Netflix named Peter Rice, a former Disney executive, to succeed Bajaria as content chief. Rice will also oversee Lin's responsibilities until a new film chief is appointed.
Netflix shares have fallen more than 40% since the company moved to acquire Warner Bros. Discovery. The streaming service has failed to post a net gain in subscribers in any month this year through the end of September, according to Antenna, a U.S. subscription analytics firm. Antenna's estimates are based on credit card statements and exclude subscriptions obtained through bundled packages offered with partner companies. Netflix has not disclosed subscriber numbers since early 2025.
Netflix nonetheless remains the dominant force in subscription streaming. Its monthly churn rate among U.S. subscribers stood at just 2.1% in September, the lowest in the industry, Antenna said. The company posted double-digit revenue growth in every region worldwide in the second quarter.
Games and Podcasts Seen Scaled Back as Focus Returns to Film and TV
The Journal described the restructuring as a sign that leaders of the streaming giant believe its content lineup needs a sweeping overhaul. Co-Chief Executive Ted Sarandos has repeatedly argued that Netflix, after expanding into areas such as games and podcasts, needs to strengthen its core slate of television series and films, according to the report.
Netflix has broadened its lineup to include live sports, games and podcasts, but with limited results. Only 3.5% of Netflix subscribers play its games in a given month, according to an internal email circulated at the company. A person familiar with the matter said the company has recently stopped pushing games and podcasts and is refocusing on its core film and television business.
Management is also considering other shifts in content strategy. Netflix films have typically been released online first or given only brief theatrical runs, but the company is now weighing theatrical releases ahead of streaming. Another option under discussion would allow users to subscribe to rival services, such as NBCUniversal's Peacock, from within the Netflix app.
Any new content strategy is expected to be addressed at the third-quarter earnings release on the 20th. Wall Street expects diluted earnings per share of about $0.82 and revenue of $12.87 billion to $12.88 billion for the quarter. Second-quarter revenue was $12.56 billion, up 13.4% from a year earlier.
