Netflix appointed former Disney executive Peter Rice as chief content officer on Thursday, replacing Bela Bajaria after a decade at the company. The move signals an aggressive strategic pivot as Netflix confronts slowing growth and mounting competition for viewer attention.
Rice previously served as chairman of Walt Disney Television and headed ABC, Disney Channel, Hulu and FX Networks. He oversaw production of more than 300 shows including "The Bear," "Abbott Elementary" and "Shogun." Disney earned roughly 300 Primetime Emmy nominations under his leadership between 2021 and 2022, winning nearly 60 awards. Before Disney, Rice was president of 21st Century Fox and CEO of Fox Networks Group.
Bajaria, who joined Netflix in 2016 to build its unscripted division, rose to oversee the company's $20 billion content budget. She shepherded major hits like "Stranger Things," "Wednesday," "Bridgerton," "Squid Game" and "Beef." She also pushed Netflix into live sports with deals involving WWE and the NFL.
The personnel shift follows a bruising quarter. Netflix laid off roughly 1,000 employees, or 6% of its workforce, days before announcing Rice's appointment. The company reported in July that viewership grew just 2% in the first half of 2024. Netflix's Emmy wins dropped to 16 this year, its lowest haul in a decade, compared to 44 in 2021.
Co-CEO Ted Sarandos acknowledged last month that the company is "not growing as fast as I want us to." Netflix now captures 7.8% of television viewership, while YouTube draws nearly double that at 14.2%.
Brian Pitz, managing director of internet research at BMO Capital Markets, wrote that Bajaria's "sudden departure likely signals to us that user engagement may have remained soft throughout" the third quarter. Alicia Reese, senior vice president at Wedbush, noted that Rice's experience consolidating Fox and Disney studios "gives him unique insight" should Netflix pursue acquisitions, including potential assets from NBCUniversal.
Netflix earnings are set for release on Tuesday. Wall Street remains uncertain whether Rice's arrival signals stabilization or foreshadows deeper structural changes ahead.