Key facts
- Netflix co-CEO Ted Sarandos acknowledged a need for better US content execution.
- The US is Netflix's largest market, accounting for 44% of revenue in Q3.
- Content chief Bela Bajaria and film chief Dan Lin are being replaced.
Netflix needs to improve its output of US-produced shows and movies, co-CEO Ted Sarandos said on Tuesday, following the company's third-quarter earnings report. He acknowledged that while the streamer's global content is largely successful, the US market is not growing as rapidly as desired.
Sarandos told investors that the US market is "working" but needs "better execution." He added that other international territories often depend on US titles to become global "home runs." The US and Canada represent Netflix's largest market, contributing approximately 44% of its revenue in the third quarter, totaling $5.6 billion.
These comments come as Netflix undergoes content leadership changes, with Bela Bajaria being replaced by former Disney and Fox executive Peter Rice, who will initially oversee movies. Film chief Dan Lin is also departing. Co-CEO Greg Peters articulated the company's ambition to elevate its content slate from "very good to great."
Netflix also recently reduced its workforce by about 1,000 employees. Entering Tuesday's earnings report, the company's shares had fallen approximately 44% over the preceding 12 months. The stock experienced a 6% decline in after-hours trading following the release of the report, which indicated a third consecutive quarter of decelerating revenue growth.