Growth stalls, stock price plunges over 20%, Netflix (NFLX.US) brings in a "Hollywood veteran" to seek the next blockbuster

According to Zhitong Finance App, as user and revenue growth slow down, the streaming giant Netflix (NFLX.US) has announced a leadership change. Veteran film and television executive Peter Rice will take over as Chief Creative Officer, in hopes of revitalizing the company's growth momentum.

Rice previously served as Chairman of Disney's (DIS.US) General Entertainment division, and before that as President of 21st Century Fox. He will officially assume his new role on October 26, overseeing a broad scope that includes all scripted and unscripted series, films, and live events across all regions. This personnel change means that Bela Bajaria, who has served as Netflix's public face for content strategy during her ten-year tenure, will step down from the role.

This executive shakeup, along with the layoff of around 1,000 employees on Wednesday (about 6% of the workforce), indicates that the streaming industry leader is seeking self-reinvention in the face of slowing audience growth and plummeting stock prices.

Currently, the platform's global subscription count has grown to over 325 million. However, Netflix's positioning has shifted: from being the producer of high-quality series like "House of Cards" and "The Crown," it has transformed into a comprehensive entertainment platform, competing in the global market against diversified content such as sports channels and YouTube shorts.

Netflix's top management believes appointing Rice to this position represents an opportunity. Rice has deep roots in Hollywood and significant connections with talent, combined with extensive experience managing multi-channel and streaming media business portfolios. During his tenure at Fox and later at Disney, he oversaw hit shows including "The Simpsons" and "Modern Family."

By promoting Rice to this role, Netflix's leadership sees an opportunity: to bring in an executive with strong Hollywood relationships and hands-on experience running a broad array of channels and streaming services. At Fox and then Disney, he supervised popular TV lineups including hits like "The Simpsons" and "Modern Family."

Recently, several Netflix shows saw lackluster viewership for their second seasons. The platform's number of Emmy Awards in 2026 is at its lowest in a decade. The company's stock price has fallen around 23% this year.

Last month, Ted Sarandos, Netflix's Co-CEO, acknowledged at a conference in Los Angeles that the company's growth rate has not met his expectations. While the company has been expanding into live sports and podcasts, the majority of Netflix's roughly $20 billion content budget is still focused on films, TV series, and video games.

"Peter is one of the most adept large-scale operators in the entertainment industry," Sarandos said in a statement Thursday. "He understands what makes stories resonate, and he has spent his entire career helping talent create the best work of their lives."

Bajaria has been widely praised for expanding Netflix's entertainment content offering. She grew the roster of unscripted programs and struck a deal with TKO Group Holdings Inc. (TKO.US) to bring WWE's weekly wrestling show "Raw" to the streaming platform. Impressively, she once described the ideal Netflix offering as a "gourmet cheeseburger"—balancing quality with broad appeal.

"Losing Bela Bajaria is a significant change, but Peter Rice is highly respected in the industry," Wedbush Securities analyst Alicia Reese stated in an email. "For us, this is a step forward, or at the very least, a change in direction."

Reese noted that Netflix's transition from a streaming service to a more diversified content platform aligns well with Rice's experience. His background integrating Fox's entertainment assets with Disney suggests that Netflix may consider future acquisitions, such as bringing NBC Universal onboard should it come up for sale—earlier this year, Netflix lost out to a Skydance (SKYD.US) bid in the pursuit of Warner Bros. Discovery.