Netflix shares NFLX fell 3.5% in premarket trading on Friday after the streaming company announced a leadership change aimed at strengthening its film and television programming amid slowing viewer engagement and increased competition.
The company said former Disney and Fox executive Peter Rice would become its chief content officer on October 26, replacing Bela Bajaria, who is leaving after nearly a decade at Netflix.
The announcement came a day after the company revealed plans to cut approximately 6% of its workforce, or around 1,000 jobs.
Netflix shares had already declined 23% this year through Thursday’s close, as concerns about its share of television viewing and ability to produce popular content weighed on investor sentiment.
Netflix replaces Bela Bajaria with Peter Rice
Rice will oversee Netflix’s film and television slate, as well as live events, taking responsibility for a broad range of programming as the company seeks to improve viewer engagement.
He previously managed Disney’s television operations, including ABC, FX, Hulu and its television studios.
Before joining Disney, Rice held senior positions at 21st Century Fox and Fox Searchlight Pictures.
During his tenure at Disney, the company released critically acclaimed programmes such as Modern Family and Abbott Elementary and approved projects including The Bear.
Netflix co-chief executive Ted Sarandos praised Rice’s industry experience and relationships with Hollywood talent, describing him as one of the entertainment industry’s most effective large-scale operators.
Sarandos also thanked Bajaria for helping expand Netflix’s programming into unscripted shows, live events and sports.
Bajaria had overseen the company’s global film and television slate since 2023.
The leadership change comes as Netflix explores new programming formats, including video podcasts and live sports, to compete for audiences against platforms such as YouTube and TikTok.
Viewer engagement and competition weigh on shares
Netflix has faced concerns that its share of television viewing hours is declining, raising questions about whether slowing engagement could eventually affect subscriber growth.
The company has struggled to produce cultural hits on the scale of earlier successes such as Stranger Things and Wednesday.
Finding another globally popular programme could help restore momentum, although the performance of future releases remains uncertain.
Sarandos acknowledged the challenge at a conference last month, saying: “Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster.”
Netflix also drew scrutiny in July when it announced that it would publish its engagement report once a year instead of twice a year, starting in 2027.
Competition for viewers has intensified as established streaming services and digital platforms vie for audiences’ time.
The company had also sought to expand its programming library through a potential acquisition of Warner Bros. Discovery, but Paramount, now called Skydance, ultimately won the bidding contest.
Job cuts and upcoming earnings in focus
The appointment of Rice follows Netflix’s announcement that it would eliminate around 1,000 positions, marking its largest round of layoffs in at least four years.
The combination of job cuts and a leadership transition highlights the pressure on the company to improve operating efficiency while strengthening its content offering.
Rice’s priorities will include Netflix’s film and television productions and live events.
Industry insiders are also watching for his decisions on key leadership roles and the performance of major upcoming projects, including La Bola Negra and Narnia, which are associated with current film chair Dan Lin.
Netflix is scheduled to report earnings on Tuesday, giving investors an opportunity to assess its latest financial performance and management’s outlook.
The company’s ability to improve viewer engagement and deliver successful programming will remain central to its efforts to rebuild investor confidence and reverse its share-price decline.
Wedbush reiterated its buy position on the stock while cutting the target price from $105 to $90.
BMO Capital also maintained its buy position and slashed the target price from $135 to $125.
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