Peloton’s new CEO joins the fitness company at a difficult time. Exercise bike sales are slowing, the stock price is falling, and takeover rumors are on the rise. On Tuesday, the company announced its intention to cut 20% of its positions.

But new chief executive Barry McCarthy has a history of helping transform businesses. McCarthy, 68, is the former chief financial officer of Spotify and Netflix, and he has served on the boards of companies ranging from Pandora to Rent the Runway and Instacart.

McCarthy was one of Netflix’s first employees, joining the tech company in 1999, two years after it was founded by current CEO Reed Hastings. McCarthy served as chief financial officer until his departure in 2010 – and during that time helped Netflix transition from shipping DVDs to the online streaming business that has since helped disrupt the whole of the entertainment industry.

When the company’s online streaming service first launched in 2007, it only had about 1,000 movies available for streaming, compared to approximately 70,000 titles on DVD. But McCarthy remained confident: In March 2008, he told Reuters that Netflix would be the market leader in online movie streaming, even ahead of big tech companies like Apple and Amazon.

The plan, McCarthy said, was to make Netflix’s platform as widely available as possible. “We would like to be on as many platforms as possible,” he said. “If you buy an electronic platform and you can access Netflix content on your TV because it’s on that set-top box, that’s great.”

At the time, McCarthy said bundling physical movies and streaming services would help Netflix edge out all of its competitors in the online streaming market. His reasoning, according to Reuters, was that streaming technology was still new – and often slow and unreliable. Pairing it with DVD rentals would keep customers in the pocket long enough for streaming technology to improve, McCarthy explained.

In 2009, Netflix movie streams were already exceeding DVD shipments. Streaming quality had indeed improved by then, and Netflix already had over 12,000 titles streaming. Today that number is over 13,600and Netflix produces hundreds of its own movies and shows each year.

Since McCarthy’s comments, Netflix’s valuation has risen from around $2.3 billion to over $175 billion. Rivals like Amazon, Apple and traditional entertainment companies have rolled out their own online streaming platforms in hopes of knocking Netflix off its pedestal at the top of this market.

Peloton also faces stiff competition – from gyms and other home fitness brands like Tonal, Hydrow and Lululemon’s Mirror. The New York-based company’s recent struggles have also sparked speculation of a possible takeover, with possible suitors ranging from Apple and Amazon to Nike. But at least for now, McCarthy doesn’t seem interested in leading Peloton through an acquisition.

“As a passionate member of Peloton, I have experienced first-hand the mission of this fantastic company and believe the platform has tremendous potential,” he said in a statement Tuesday. In the same statement, he promised to “take the business to the next level”.

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