Thread regarding Netflix Inc. layoffs

The Internal Battle

Netflix’s Big Wake-Up Call: The Power Clash Behind the Crash
/source in comments, continues in comments/

As rivals toggle between schadenfreude and fear, top creators and insiders are increasingly becoming vocal about what’s gone wrong with the streaming giant’s culture.s. “It gave the power of greenlight to several people. It caused absolute demoralization and chaos. Everybody thought it was a terrible thing Ted did, allowing one team to greenlight something that another team had passed on.” Though the show was critically panned (it sits at 11 percent on Rotten Tomatoes), it performed well enough to get a second season. “It sent a message to Ted because it did OK numbers,” this source continues. “Ted, wanting to increase content by a huge amount, started to look to Bela as what the company should be. Cindy kept saying we should still be betting on high-end creators and making some cheaper things, too.” (A Netflix insider notes that Sarandos was impressed when Bajaria picked up the thriller You from Lifetime — a project that Holland had rejected as a pitch. The series turned into a Netflix hit.)

A Netflix rep stated in reply to a request for comment, “Bela is an exceptional creative executive with an eye for quality as well as shows that will appeal to many different audiences. Under her leadership we’ve expanded the variety and breadth of our TV programming in the U.S. and internationally.” Among the shows Bajaria is credited for are megahit Squid Game and Lupin.

Sources say some Netflix executives began to worry about the burgeoning number of shows. “It was, ‘Hey, guys, do we think this is enough? Because we are cannibalizing our own sh-t,'” says a former insider. And then there was Holland’s concern about the lack of curation and quality control. An important creative talent who had successes working with Holland muses: “I wonder if, say, a bonobo throwing sh-t at a whiteboard full of titles as a method of deciding what projects to make would have more or less success than all of these other ‘deciders’ who think they know what people want or don’t want.”

But a prominent creative who was squarely on Team Holland says, “They pitted Bela and Cindy against each other.” Adds a former Netflix insider, “People would always say they didn’t know who to go to [to pitch]. And Ted loved that stupid phrase, ‘There are multiple paths to yes.’”

One of Holland’s last projects for Netflix was The Queen’s Gambit, an expensive period piece that sources say was mocked as “Holland’s Folly” by some in-house. According to sources, Bajaria and her staff were dismissive and even unpleasant to the team that worked on it. (A Netflix spokesperson says that is false.) When the series turned into a phenomenon, Bajaria was routinely credited for it in the media.

As Holland expressed unhappiness with the broader strategy, an insider says the response was that things would work out fine if maybe one in 10 shows worked. “This is one of the things that Cindy and Ted disagreed on for a while,” this person says. “She was the one person who would push back on him.” Frustrated, sources say Holland turned to Netflix founder Reed Hastings. This source says Holland also objected to Sarandos’ expensive campaigns for the Oscars: “Cindy said, ‘You’re losing the town. You cannot buy your way to an Oscar.’ That was another thing Ted was mad about.”

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In July 2020, Sarandos was promoted to co-CEO of Netflix. With that, some believe, he was no longer interested in dealing with pushback from Holland or anyone else. In September 2020, in the middle of the pandemic, Sarandos invited Holland to a meal at Pastis in New York — outdoors, naturally — and told her that he was backing Bajaria. A source believes Sarandos, who is said to dislike confrontation, chose a public spot to avoid it. “He didn’t bring her into his office and say, ‘We’ve been together for years,’” says one Holland loyalist. “And she was the soul of the operation.” But another source says Sarandos flew to New York specifically because he didn’t want to have the conversation over Zoom.

Sarandos is then said to have given both Bajaria and Netflix film chief Scott Stuber staggering raises. While Netflix executives are famously well-paid, Holland had been making less than $10 million a year; Stuber and Bajaria were rewarded with salaries from $16 million to $18 million. With that kind of compensation at stake and Netflix’s notoriously fickle anyone-can-get-fired-at-any-time credo, it was no surprise that both would do their best to carry out Sarandos’ vision, says a source who has worked closely with the service.

While Holland had been criticized for spending too freely, Bajaria has established a reputation for grinding down budgets. Multiple sources say that has already been going on for at least a year at Netflix, and it is clearly intensifying. But while Bajaria has her detractors, one unhappy Netflix creative says he doesn’t blame her or, by implication, Stuber, for the consequences. “You cannot blame Bela for any of this,” this person says. “She has bosses in Reed and Ted, and this fish stinks from the head. Now they make widgets. And she’s on the road so much, she can’t foster relationships with people.”

Another major Netflix talent agrees that a “profound culture shift began with Cindy’s departure” but adds a major caveat. “Netflix was a gut-driven, risktaking, maverick culture,” he says. “Now it’s more prudent and frequently indecisive. But what’s also true is that the Cindy era had no cost controls. It was therefore unsustainable as a business model. That’s a fact.”

The rumor mill is now spinning furiously about what Netflix will do to address its issues. Which heads will roll? Is it possible Hastings will sell? Will the streamer drop its binge strategy? Can its ad-supported option work? What about games? Despite the questions, the chief of a rival company says the streamer is still a behemoth. “I don’t think Netflix is Blockbuster,” he says. “I think it’s here to stay. But the idea that they could spend their way to world domination is over.”

Source:
https://www.hollywoodreporter.com/business/digital/netflixs-big-wake-up-call-the-power-clash-behind-the-crash-1235136004/

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