Netflix streams NFL games, plans IMAX release as U.S. engagement slows

Netflix names Peter Rice as chief content officer after 1,000 layoffs

Netflix is regrouping after releasing its latest quarterly earnings this week, with revenue growth slowing as the company overhauls its programming unit. Alongside that reorganization, the streaming company is livestreaming NFL games, plans to stream next summer’s Women’s World Cup and will release a Brad Pitt film on IMAX this Thanksgiving. Co-CEO Ted Sarandos, who continues to insist that Netflix is a streaming company first, was tapped to join the board of directors of the American Film Institute this week. Sarandos told investors this week that U.S. viewer engagement is slowing down.

Netflix laid off 1,000 people, equal to 6% of its workforce, and then dismissed its chief content officer, the chair of Netflix film and six other top executives. NPR’s Mandalit del Barco, reporting from Los Angeles, said the combination of layoffs and executive removals was a surprise. The company’s leaders said they had to make some tough decisions about where to trim or redirect their investments. Netflix beat Wall Street expectations in the latest quarter, but its growth has slowed.

Sarandos told investors that viewer engagement in the U.S. is slowing down. “We do need better execution in the U.S. It’s just not growing as fast as it could or as fast as we’d like,” he said.

Peter Rice replaced outgoing chief content officer Bela Bajaria. Rice is the former president of 21st Century Fox and previously headed Fox Searchlight, where he greenlit films including Slumdog Millionaire, Juno and Little Miss Sunshine. Del Barco said Rice is “by all accounts beloved in Hollywood.” Sarandos credited Bajaria with expanding Netflix’s global reach, and the service is available in 190 countries.

Del Barco said it remained to be seen how and whether Netflix’s content would change under Rice. The streamer has not had a water-cooler hit in a while, she said. On The Ankler Agenda podcast, Natalie Jarvey, who covers the creator economy in Hollywood, said: “It was messy. It was sloppy. It shocked a lot of people, but it still approaches strategy and decision-making very different than a lot of Hollywood companies.”

Del Barco described “a lot of nervousness and unease” as the TV and film companies consolidate and reorganize. Just a few weeks ago, Disney had its third wave of layoffs in six months, she said, and a lot of people are bracing for massive layoffs since Skydance, the recent merger between Paramount and Warner Bros. Skydance outbid Netflix to acquire Warner Bros. and all its assets.

She also pointed to TikTok and YouTube as competitors. YouTube has more revenue and a bigger audience than Netflix, she said. Netflix appears to be playing catch-up by signing up digital content creators, del Barco said.

Sarandos continues to insist that Netflix is a streaming company first. This week, he was tapped to join the board of directors of the American Film Institute, and Netflix continues to release some movies in theaters before streaming them. This Thanksgiving, Netflix will release The Further Mis-Adventures Of Cliff Booth on IMAX. The film stars Brad Pitt and is a sequel to Quentin Tarantino’s Once Upon A Time… In Hollywood.

Netflix executives once said the company would never do sports. The service is now livestreaming NFL games and plans to stream next summer’s Women’s World Cup.

Netflix now has Rice leading content after cutting 1,000 jobs, with theatrical releases and live sports alongside streaming and digital content creators joining its programming efforts. Sarandos said U.S. engagement was not growing as fast as the company could or would like.