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Netflix Forecasts Slower Sales Growth as Co-CEOs Overhaul Leadership
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Moneycontrol•21-10-2026, 02:49
Netflix Forecasts Slower Sales Growth as Co-CEOs Overhaul Leadership
- •Netflix reported third-quarter sales of $12.9 billion meeting expectations, but projected fourth-quarter sales of $13.4 billion, which fell short of analyst predictions and marks the fourth consecutive quarter of slowing growth.
- •The company attributed the sales shortfall to its advertising business, which is tracking $300 million below initial expectations, causing shares to fall as much as 7% in after-hours trading.
- •In response to slowing growth and declining programming quality, Co-CEO Ted Sarandos fired Chief Content Officer Bela Bajaria and film chief Dan Lin, alongside cutting 6% of the workforce.
- •Netflix named veteran executive Peter Rice to replace Bajaria as part of a major leadership overhaul aimed at reviving the streaming giant's creative output and viewership engagement.
- •Despite remaining the leading streaming service with over 325 million subscribers, Netflix faces mounting skepticism from investors and intense competition from rivals like YouTube.
Key Questions Answered
Netflix blamed its sales shortfall on its advertising business, which is on pace to deliver $300 million less than the company expected.
Netflix fired Chief Content Officer Bela Bajaria and film chief Dan Lin, replacing Bajaria with veteran entertainment executive Peter Rice.
According to Nielsen, Netflix's share of US TV viewership sits at 7.8%, which is far behind YouTube's capture of about 14%.
