Peter Rice, Netflix’s new chief content officer, will combine “art and commerce” in reorienting the company’s film and television operations, co-CEO Ted Sarandos said.
Executive turnover was a key topic during Netflix’s third-quarter earnings conference call Tuesday with Wall Street analysts. The call follows the release of strong financial results for the July-September quarter, although weaker guidance for the fourth quarter and full year spooked investors and sent Netflix shares tumbling after hours.
Rice was named to the top content role, replacing 10-year company veteran Bela Bajaria, amid the layoff of 1,000 employees, including a number of senior executives.
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“Peter brings expertise in art and commerce, television and film,” Sarandos said. “It’s this perfectly balanced skill set that will guide us in our next chapter.”
Sarandos said he first met Rice about 15 years ago. The former 21st Century Fox executive remained in a leadership role after Disney acquired most of Fox, but was fired by former Disney CEO Bob Chapek.
“I have to tell you that the excitement around its arrival on Netflix, from across the industry and the creative community, has been nothing short of overwhelming,” the executive said. “He is one of the few people in the industry who has led television networks, movie studios and streaming services. His creative instincts and business acumen are remarkable. He is truly a quality and volume operator at scale, and he does it in every form of entertainment imaginable: network, premium cable, streaming, theatrical and television films, and live sports.”
While Sarandos took the time to praise Bajaria on the call, he also threw some shade, adding, “Most importantly, Peter Rice understands talent relationships. In a competitive market, creative talent has a choice in where they want to work, and we want Netflix to always be the place where they love to do the best work of their lives. Peter is exactly the right person to lead these efforts in the United States and around the world.”
Rice can “impact” fourth-quarter and 2027 stocks “even in the short term,” Sarandos said, although he was not involved in the green light decisions.
While speaking about Rice, Sarandos also insisted that the company’s “business and flywheel is working.” Although there has been a slowdown in audience growth, he added, “there is no need for a fundamental change in strategy. We need better execution in the United States.”
Netflix has had “some solid doubles and triples this year, but other territories rely on those home runs to be able to travel around the world,” he said.
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