Netflix Defends Global Strategy as Peter Rice Takes Over Content

Netflix has named former Disney executive Peter Rice its chief content officer, replacing Bela Bajaria — and co-CEO Ted Sarandos used Tuesday's third-quarter earnings call to insist the shake-up changes nothing about the company's core playbook.

"Our strategy is unchanged," Sarandos said. "The anchor of that strategy are the Netflix originals. Differentiated, exclusive, ambitious, professionally produced series and films and live events."

He said the streamer pairs that "exclusive programming with kind of a broad offering of third-party programming, including second run titles," and is looking for "new ways to bring third-party content onto the service" — citing the TF1 deal in France, "where you're ingesting a full network of programming."

What does the leadership change actually mean?

Sarandos's message splits the world in two. Internationally, things are working. "We had great results in APAC, LATAM and EMEA. Our local titles from those regions are driving engagement and they're driving business growth," co-CEO Greg Peters said on the call. The problem sits in the U.S. slate, which Sarandos acknowledged needs stronger results, since American hits still drive engagement worldwide.

In the U.K., one of Netflix's most established production hubs, the shake-up has caused anxiety among producers already battered by shrinking budgets and fewer commissions. But the British scripted team, led by Anne Mensah and responsible for hits like "Baby Reindeer" and "Adolescence," is seen as well protected.

"I have a sense they have real autonomy in the U.K.," one scripted producer who has worked with the local originals team said. "Much more so than some of the other streamers who are much more dependent on what the American scripted commissioners or heads think about stuff."

Any shift under Rice will also take years to show. Scripted projects are commissioned well in advance; the next two to three years of programming is already planned, and "The Gentlemen" Season 3 is unlikely to reach screens before 2028.

Broadcaster deals: the model Netflix wants to replicate

The other half of the story is licensing. In France — where Netflix has roughly 14 million subscribers and became the country's largest private contributor to local creation in 2025, investing €308 million ($345 million) across film and TV, according to regulator Arcom — the TF1 deal gives subscribers access to the broadcaster's linear and on-demand programming directly through Netflix.

"We are very pleased with the early performance that we've seen in that integration," Peters said. TF1 viewing on Netflix grows every month, and early testing suggests the added programming generates incremental viewing rather than cannibalizing Netflix's existing slate. Peters said Netflix will "replicate similar positive results with other partners."

For Netflix, the math is simple: these alliances expand local offerings without the full cost of production. Broadcasters gain access to Netflix's subscriber base and new revenue from existing shows. Producers are warier, since shows that appear on multiple platforms at once lose their exclusivity value.

Brazil got the most airtime from Sarandos. Netflix recently struck its largest-ever licensing agreement with Globo, Latin America's biggest media company — a long holdout in its home market, where it runs its own premium service, Globoplay. The deal, starting in December and running through mid-2027, covers 18 titles, 14 of them films, including Walter Salles' Oscar-winning "I'm Still Here" and the International Emmy-winning 2009 telenovela "India — A Love Story" by Glória Perez.

"This is the most meaningful licensing deal we've ever done in Brazil," Sarandos said. "They are the leading series and film producer and distributor in that country."

The deal offers Brazilian films a valuable second window. "I'm Still Here" grossed $19.6 million in Brazil, but, as producer Rodrigo Teixeira said at San Sebastián's Creative Investors Conference: "A lot of other Brazilian films make 10,000 admissions in theaters. And that kills the film."

Elsewhere, Netflix already licenses from Spain's RTVE and Atresmedia — roughly 700 hours in 2025, up from 543 hours, out of 2,829 total licensed hours (Ampere Analysis estimate, versus 2,420 in 2024) — and holds second-window deals with Italy's RAI for shows including "Sandokan" and "The Sea Beyond." Italian content chief Eleonora Andreatta, a former RAI head of drama, brings deep ties to that broadcaster.

Why originals aren't going away

India shows why retreat isn't on the table. It was the standout performer in Q3: viewing hours up 24% year-over-year, revenue up nearly 20% (Peters). Per Media Partners Asia, the quarter was Netflix's strongest ever for paid subscriber additions in India, helped by unscripted hit "Lock Upp" and a Flipkart distribution bundle.

"Asia is about a fifth of Netflix's subscribers but only around 12% of its revenue," said Vivek Couto, co-founder and CEO of Media Partners Asia. "We see APAC reaching $8 billion by 2030, with upside, and the real question is what it takes to get to $10 billion." Couto flagged India, Japan and Southeast Asia — where Netflix invests in free-to-air style programming — as central, with Korea the mature market whose next growth leg is advertising.

Peters grouped India, Indonesia and Colombia as markets with room for subscriber growth at accessible entry-level prices; the U.S., U.K. and Australia will grow mainly through pricing and advertising, with Japan and Mexico in between.

What to watch next

Rice's arrival raises questions about film spending. "Netflix was producing around 80 original films [in the U.S.] out of which I don't know how many were remotely relevant, just pouring tons of money in originals that nobody was seeing," one leading Spanish producer said, noting Rice "has been the head of a studio and head of a studio internationally and someone who knows the world market." Who replaces Dan Lin, that producer added, "is going to be key."

Netflix is also pushing back on regulation: alongside Amazon Prime Video and Disney+, it has appealed to France's Conseil d'État against new sub-quotas for documentary and animation investment, and is lobbying the European Commission as it reviews the Audiovisual Media Services Directive. With the advertising tier expanding into 15 more countries in 2027, the strategy looks steady — but how far last week's U.S. shake-up reverberates remains the open question.