• by Wayne Friedman , Staff Writer, Yesterday

Netflix's slowing overall growth -- including some issues with stagnant viewership -- has led the premium streamer to make major changes.

In addition to the 1,000 staff layoffs (6% of its workforce), major senior executive Bela Bajaria is departing the company as its chief content officer, to be replaced by former Walt Disney Television (and Fox Television) executive Peter Rice.

Over the past ten years, Bajaria has led the company's expansion into unscripted programming, and more recently, into live events and sports content -- boosting the overall perception that Netflix was only about premium scripted TV shows and movies. Netflix co-CEO Ted Sarandos recognized Bajaria's major contributions in a release last week.

Still, the question is: why now? Perhaps that expansion -- unscripted, live events, and sports -- has peaked?

More importantly, what comes next?

Netflix has begun to move into many areas over the last several years -- most recently, video podcasts, and now possibly microdramas. In earlier years, Netflix worked up gaming as a potential area of change to draw young viewers.

One analyst believes there is another direction to consider, given Netflix's recent interest in buying Warner Bros. Discovery (now part of Skydance Corp, alongside another studio-centric business, Paramount).

Netflix may be interested in pursuing another big movie/TV acquisition, according to Alicia Reese, media analyst at Wedbush.

As part of this, look for Netflix to move -- in a bigger way -- into theatrical content.

Given Rice's experience in different legacy TV-centric media companies -- Fox and Disney -- he could become a major factor, not just in laying the groundwork for new, hit-driven TV and movies, but possibly broader insight into media merger deal-making, analysts say.

It is not just about weakening viewer engagement. Netflix’s stock continues to suffer, down 24% year-to-date and 40% over the last 12 months.

Right now, Netflix remains very profitable in comparison to its wannabe streaming competitors and the heavily debt-encumbered Skydance Corp.

Bigger Netflix moves are destined to come.