Netflix, once riding high, launches sweeping overhaul as U.S. streaming market falters

[Financial News] Netflix, once at the forefront of the streaming revolution, has launched a sweeping overhaul of its management and content strategy as it faces a severe decline in viewership and a lack of hit shows.
On the 19th (local time), The Wall Street Journal (WSJ) reported that Netflix, which had dominated the U.S. streaming market, had hit a wall and would seek to make changes amid falling viewership and a shortage of new releases, including dismissing content executives and screening new films in conventional theaters first for 45 days.
Shortly after laying off roughly 1,000 employees, Netflix dismissed Bela Bajaria, its former head of content, and then Dan Lin, who led its film division, also left his post.
The series of personnel changes is seen as a result of co-CEO Ted Sarandos’s repeatedly voicing internal dissatisfaction over declining viewing hours in the U.S. and the lack of a major hit to follow Stranger Things and Squid Game.
Netflix appointed veteran executive Peter Rice, formerly of Disney and Fox, as Bajaria’s successor. Rice will oversee a global content budget of about $20 billion (about 27 trillion won) and lead the company’s drama, film, entertainment and live sports programming.
The layoffs are part of Netflix’s recent restructuring plan, dubbed “Project Meridian.” Sarandos and co-CEO Greg Peters had reportedly considered cutting up to 10% of the workforce, but decided on 6% after consulting with department heads.
According to analysis by analytics firm Antenna, Netflix did not record an increase in monthly new subscribers in the U.S. market at any point this year. Following its failed bid to acquire Warner Bros. Discovery, Netflix’s stock has fallen more than 40% year over year so far this year. Netflix, which has not disclosed its subscriber numbers since early last year, disputed Antenna’s figures.
Netflix’s crisis deepened as public attention shifted toward short-form and creator platforms such as YouTube and TikTok. In response, Netflix has expanded low-cost, high-efficiency formats such as video podcasts, creator content and live sports, but its gaming business and other ventures have failed to meet expectations.
The Journal reported that Netflix has decided to move away from sending most of its films straight to its own platform and, like traditional studios such as Disney, to release major productions such as Charlie and the Chocolate Factory and The Chronicles of Narnia: The Magician’s Nephew exclusively in theaters worldwide for at least 45 days before they arrive on its platform.
[email protected] Yoon Jae-jun Reporter