Netflix is overhauling its leadership in an effort to address flagging engagement. On Thursday, the company announced that Peter Rice, a former president of 21st Century Fox and head of Disney's television entertainment business, will oversee its global content organisation, including scripted and unscripted series, film and live events.
Rice replaces Bela Bajaria, a 10-year Netflix veteran who most recently led the global content team with a focus on live sports strategy. Bajaria was initially hired in 2016 to launch an unscripted division and handle licensing and studio co-productions. She later became the top creative executive, overseeing Netflix's $20 billion content budget, and shepherded hits including "Stranger Things," "Wednesday," "Bridgerton," "Squid Game," "Adolescence" and "Beef," as well as films such as "Frankenstein" and "KPop Demon Hunters." She also pushed Netflix into live sports and events, securing deals with WWE and the NFL, and producing programs like "The Roast of Tom Brady."
Rice, prior to his Disney tenure, was president of 21st Century Fox and CEO of Fox Networks Group, and served as Fox's lead executive on the Hulu board. He was also president of Fox Searchlight Pictures, where he helped release "Slumdog Millionaire," "Juno," "Little Miss Sunshine" and "Sideways."
The executive shuffle follows a difficult period for Netflix. In July, the company reported that viewership increased just 2% in the first half of the year, attributing the slowdown to a lack of shows that generate significant cultural buzz. At the Bloomberg Screentime conference last month, co-CEO Ted Sarandos acknowledged the company is "not growing as fast as I want us to."
The warning, combined with Bajaria's departure, has left Wall Street anticipating further turbulence. Brian Pitz, managing director and head of internet and interactive entertainment equity research at BMO Capital Markets, wrote in a research note that the sudden departure of Bajaria likely signals that user engagement remained soft through the third quarter. Pitz also said that the recent layoffs reflect "more structural changes to the cost base than a reaction to near-term subscriber dynamics."