Netflix Inc.'s (NASDAQ: NFLX) film division is undergoing a significant reorganization under the leadership of its new head, Dan Lin.
The restructure aims to categorize the division based on genre, dividing films into specific categories such as sci-fi, rom-com, and faith-based. This strategic move, which has been in development for over a month, involves collaboration between Lin, Chief Content Officer Bela Bajaria, the film department heads, and external partners.
The reorganization reflects Lin's vision for the streaming giant, marking his influence since officially joining Netflix on April 1, the Hollywood Reporter reports.
Under the revamped structure, Ori Marmur will be responsible for action, fantasy, horror, and sci-fi films, while Kira Goldberg will be responsible for thrillers, dramas, and family movies.
Niija Kuykendall will manage faith-based, young adult, and holiday films, while Jason Young will focus on comedies and rom-coms.
The reorganization also anticipates some staff departures, estimated to be around a dozen, although this number could change.
Netflix has faced challenges in managing its vast projects and significant content budget.
Previously, the film division was organized by budget size, with Lisa Nishimura and Tendo Nagenda overseeing different segments. Following their departures, Netflix created a temporary structure to reduce confusion and consolidate film operations.
This latest reorganization under Lin aims to better align Netflix's internal structure with its film slate's needs.
Insiders suggest that the future Netflix film lineup will predominantly feature midsize offerings, which have historically been the platform's most successful ventures, alongside a selection of larger films and award contenders.
In March, Wedbush analyst Michael Pachter removed Netflix from Wedbush's Best Ideas List due to the pricing in of key growth drivers such as the crackdown on password sharing and the introduction of an ad-supported tier reducing churn.
His quarterly survey suggests a seasonal slowdown in subscriber growth, albeit with continued year-on-year increase and a rise in subscribers opting for Netflix's ad tier.
Pachter anticipates strong performance from Netflix as global trends stay stable and the advertising market improves throughout the year.
He acknowledges the ad tier's role in reducing churn and sees a substantial opportunity for Netflix to grow its advertising revenue in 2024 and beyond.
Netflix stock gained over 85% in the last 12 months. Investors can gain exposure to the stock via Invesco Next Gen Media And Gaming ETF (NASDAQ: GGME) and REX FANG & Innovation Equity Premium Income ETF (NASDAQ: FEPI).
Price Action: NFLX shares traded higher by 0.69% at $624.08 premarket on the last check Tuesday.