Netflix is changing up its leadership team as it bids to revive interest in its films and TV series -- but on Friday the switch-up was only drawing more attention to the streamer's biggest problem.
Shares slid 3.6% to $69.99 ahead of the opening bell. They were already down 23% for the year through Thursday's close, dragged down by signs Netflix is losing market share to Alphabet's YouTube TV.
The selloff came after Netflix said former Walt Disney exec Peter Rice would join as its chief content officer, effective Oct. 26. Rice will replace Bela Bajaria, who is leaving the company after more than 10 years.
Netflix cut about 6% of its staff -- or roughly 1,000 positions -- earlier this week.
Rice is joining at a tough time for the streamer. Its share of TV viewing hours has been dropping this year, fueling fears it could start bleeding subscribers.
Netflix didn't help matters in July when it said it would publish its engagement report once rather than twice a year, starting in 2027.
The slowdown in engagement has left the company in a difficult position. It could plow more money into content -- or look to grow via a flashy acquisition, after it lost the Warner Bros. bidding war to Skydance.
But the easiest way to revive its shares would be to produce the next Squid Game -- a relatively cheap TV show that ends up becoming a global phenomenon. Now it'll be Rice's job to do just that.
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