Netflix Replaces Bela Bajaria with Disney Veteran Peter Rice Amid Growth Slows

Key points

• Bela Bajaria, who served as Chief Content Officer since January 2023, is leaving Netflix after a decade at the company.
• Peter Rice, formerly Chairman of Walt Disney Television, is joining Netflix as the new Chief Content Officer starting next week.
• The announcement follows a mass layoff of approximately 1,000 employees that occurred just 24 hours prior.
• Co-CEO Ted Sarandos cited slowing engagement growth, noting only a 2% increase in viewing hours, as a factor in the strategic shift.
• Netflix has faced criticism for weak second-season ratings for shows like 'Beef' and 'The Four Seasons,' though Sarandos claims improvements this year.

Background

This leadership transition follows a period of financial scrutiny for Netflix. In September 2026, Wells Fargo downgraded the company to Underweight, citing declining viewer engagement and a lack of breakout original series. Additionally, Netflix recently expanded a licensing deal with Disney, bringing titles like 'Ice Age' and 'Percy Jackson' to its platform, while Bajaria had previously outlined a strategy focused on 'unmissable' live sports events rather than broad league packages.

Why it matters

The replacement of a long-serving creative leader with a business-focused operator signals a strategic pivot toward efficiency and measurable engagement metrics. This move addresses investor concerns regarding content performance and aims to stabilize the platform's growth trajectory during a period of intense market competition.

What to watch

Netflix co-CEO Ted Sarandos is scheduled to host a companywide town hall on October 21, 2026, to discuss the new strategy and address employee questions regarding the recent leadership changes and layoffs.