Netflix turns to Peter Rice to tackle slowing viewership: What the former Disney executive brings to the table
Netflix is turning to former Disney executive Peter Rice to address its slowing viewership growth and engagement challenges, replacing long-time content chief Bela Bajaria as the streaming giant looks to strengthen its content strategy and compete for viewers’ attention.
Announced on Thursday, Rice’s appointment comes days after Netflix laid off roughly 1,000 employees, or 6% of its workforce. The leadership change also precedes the company’s fiscal third-quarter earnings, scheduled for Tuesday, with Wall Street watching for signs of a slowdown in engagement.
In July, Netflix reported that viewership grew just 2% in the first half of the year. Co-CEO Ted Sarandos acknowledged last month that the company was “not growing as fast as I want us to”.
“The sudden departure of Bajaria likely signals to us that user engagement may have remained soft throughout [the third quarter],” Brian Pitz, managing director and head of internet and interactive entertainment equity research at BMO Capital Markets, wrote in a research note.
In July, Nielsen reported that Netflix had generated 7.8% of TV viewership, while YouTube accounted for nearly double that, at 14.2%.
The streaming giant has expanded into live sports, documentaries and video games to diversify its offering. However, producing breakout shows remains crucial to sustaining engagement.
“If the opportunity is to recast [Netflix] into a broader content hub, the risk is missing the watercooler originals,” Steven Cahall, equity analyst at Wells Fargo, wrote in a research note last month. “We see breakout hits as a must for the stock to work again.”
Rice brings extensive experience across television, film, streaming and live sports. He most recently served as chairman of Walt Disney Television and chairman of general entertainment, overseeing operations across 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,” “Only Murders in the Building” and “Shogun.” He also headed up major sporting events such as coverage of the Super Bowl, NBA Finals and FIFA World Cup.
Under his leadership, between 2021 and 2022, Disney earned roughly 300 Primetime Emmy nominations, it also nearly 60 awards across its television networks and streaming platforms.
Netflix, meanwhile, won just 16 Emmy awards this year, its lowest haul in a decade, compared with a record-equalling 44 trophies in 2021.
Rice also brings theatrical experience. Before joining Disney, he was president of 21st Century Fox, CEO of Fox Networks Group and president of Fox Searchlight Pictures, which released films such as “Slumdog Millionaire”, “Juno”, “Little Miss Sunshine” and “Sideways”. Since 2023, he has produced films including “Saturday Night” and “28 Years Later”.
His experience could also prove relevant if Netflix pursues further acquisitions after losing its bid for Warner Bros. Discovery’s film studio and streaming assets.
“Even if it doesn’t, Rice’s experience fits well as Netflix pushes deeper into theatrical and builds a broader platform with varied content across the entertainment ecosystem,” Alicia Reese, senior vice president of equity research at Wedbush, wrote in a research note.
The challenge for Rice will be to combine that breadth of experience with Netflix’s need for compelling originals that keep viewers coming back.
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