Why Did Netflix Boot Bela Bajaria?
By Matt Donnelly and Michael Schneider
Rodin Eckenroth/Variety via Getty Images
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Fear and loathing are running high as Hollywood processes the shock firing of Bela Bajaria from her role as Netflix's chief content officer on Thursday. Despite the company's recent stock struggles, many considered Bajaria untouchable.
Word of her ouster leaked before she had a chance to address her teams, coinciding with the announcement of her replacement, Peter Rice, a respected film and TV executive. While Rice's credentials as the former general entertainment chairman of Walt Disney Company are impressive, they don't fully explain Bajaria's sudden fall from grace.
Scapegoat? That's what several industry sources suggest. According to them, Bajaria became the scapegoat for Netflix's struggles, with content taking the hit.
"People always blame the content," said one source. "But you don’t lay off 1,000 people unless there’s a big problem with the business model."
Bajaria's exit mirrors similar high-profile removals in Netflix's history, notably that of Cindy Holland, the company’s first content queen behind hits like "House of Cards," "Stranger Things," and "The Crown."
Holland, according to an insider with knowledge of Netflix, built a business of boutique hits. Bajaria, however, focused on investing in local language productions and expanding Netflix's global presence. She played a key role in securing licensing deals with WWE and the NFL, boosting ad-supported subscriber tiers. Her talent relations were strong, and she was a regular at premieres and launches.
"The problem isn’t engagement," said another source. "It’s that the only lever to pull for revenue growth is raising the subscriber price. How’s that Bela’s problem? Where’s the CFO and the CEO?"
Interestingly, sources indicate that Rice only entered the picture a few weeks ago, when he was reportedly interviewing with Skydance co-CEO Ynon Kreiz for a top position at the newly combined company.