Peter Rice, seen here on May 3, 2017, became head of Disney’s TV entertainment business in 2020. He was one of the executives passed over for the CEO position for Chapek.
David Paul Morris Bloomberg Getty Images
Netflix has shaken up the C-suite in an effort to fix its engagement woes.
On Thursday, the streaming giant announced that former Disney executive Peter Rice will become the company’s chief content officer, overseeing the global content organization, including scripted and unscripted series, movies and live events.
Rice replaces 10-year Netflix veteran Bela Bajaria, who most recently led the company’s global content team with a focus on live sports strategy. Bajaria was initially hired in 2016 to help the streamer launch its unscripted division as well as licensing and co-production studios. He later moved into a top creative role, leading Netflix’s $20 billion content budget.
He oversees popular TV series like “Stranger Things,” “Wednesday,” “Bridgerton,” “Squid Game,” “Teen” and “Beef,” as well as Netflix movies like “Frankenstein” and “KPop Demon Hunters.” Bajaria also helped push Netflix into sports and live events, including deals with WWE and the NFL as well as programs like “The Roast of Tom Brady.”
Before working at Disney, Rice was president of 21st Century Fox and CEO of Fox Networks Group as well as Fox’s leading executive on the Hulu board. He is also president of Fox Searchlight Pictures and helped release “Slumdog Millionaire,” “Juno,” “Little Miss Sunshine” and “Sideways.”
The executive change follows a turbulent time for Netflix as it grapples with a stagnant audience and explores ways to grow. It comes just days after the streaming giant laid off about 1,000 employees, or 6% of its workforce.
The last time Netflix made a cut this size was in 2022 when it reported its first quarterly subscriber loss in more than 10 years.
“We believe this round of layoffs reflects more of a structural change in the cost base than a reaction to near-term customer dynamics,” wrote Brian Pitz, managing director and head of internet and interactive entertainment equity research at BMO Capital Markets, in a research note published Friday.
Flagging involvement
In July, Netflix reported an audience increase of just 2% in the first half of the year as the streamer faced a shortage of shows with water-cooler-level hype.
Co-CEO Ted Sarandos admitted last month during the Bloomberg Screentime conference that the company is “not growing as fast as I would like.”
That danger, and now out of Bajaria, has Wall Street bracing for more unrest.
“The sudden departure of Bajaria may signal that user engagement may remain soft [the third quarter],” Pitz wrote.
Netflix is set to release its fiscal third quarter earnings on Tuesday.
In July, Nielsen reported that Netflix accounted for 7.8% of TV viewers, while YouTube accounted for nearly double that, at 14.2%.
YouTube has become Netflix’s biggest threat in the battle for viewers’ time. In response, the streaming giant has sought to diversify its content in recent years, expanding live sports, documentaries and video games to compete for consumers’ attention.
“If the opportunity to recast [Netflix] to the broader content hub, the risk has lost the original watercooler, “Steven Cahall, venture analyst at Wells Fargo, wrote in a research note last month. “We see breakout hits as a must for stocks to work again.”
What Rice brings to Netflix
Rice has extensive experience in television and film, most recently as chairman of Walt Disney Television and chairman of general entertainment for the company. He manages many broadcast and streaming channels, including ABC, Disney Channel, Hulu and FX Networks. During his tenure, he oversaw the production of more than 300 shows, including “American Idol,” “Modern Family,” “Abbott Elementary,” “The Bear,” “Just Murder in the Building” and “Shogun.”
He also leads major sporting events such as coverage of the Super Bowl, the NBA Finals and the FIFA World Cup.
Under Rice’s leadership, Disney earned approximately 300 Primetime Emmy nominations between 2021 and 2022. Of those nominations, Disney won nearly 60 awards across television networks and streaming platforms.
Meanwhile, Netflix’s Emmy wins have been coming to an end.
In 2021, the record for the most trophies won by an outlet in a single year with 44. But this year, it won only 16 prizes, the lowest number of Emmys in a decade.
With Rice, Netflix is also getting an executive with theater experience. After being fired by Disney CEO Bob Chapek in mid-2022, he moved into an independent producer role. Since 2023, he has produced films like “Saturday Night” and “28 Years Later.” He is currently developing a film adaptation of the video game “Elden Ring.”
Late last year, Netflix made a deal to buy the film studio and streaming assets of Warner Bros. Discovery, just a few months ago by Paramount Skydance, which completed its acquisition of WBD in early October.
Some on Wall Street have speculated that the streamer may be interested in further M&A, including acquiring assets from NBCUniversal after it splits from its parent company. Comcast.
“[Rice’s] a long time at Fox, and then Disney after the acquisition of Fox, giving people a unique insight into the consolidation of the two main studios, suitable if Netflix chooses to go after another studio, “Alicia Reese, senior vice president of equity research at Wedbush, wrote in a research note there. ecosystem.”