In a major leadership shift, Netflix co-creator Reed Hastings has announced his decision to step down as co-CEO of the streaming giant. Effective immediately, Ted Sarandos and newly promoted operations chief Greg Peters will share the role of co-CEOs. Hastings will remain involved with the company as Executive Chairman, serving as a “bridge” between the board of directors and the new CEOs.
Hastings characterized the move as a long-planned transition, stating that Sarandos and Peters have been “increasingly” managing the company for the past two and a half years. Sarandos is credited with leading Netflix’s move into original content, while Peters has been instrumental in forming partnerships and leading the company’s push into gaming.
This transition comes as Netflix appears to be recovering from a difficult 2022, during which it lost subscribers for the first time in over a decade. In its recently released fourth quarter earnings report, however, the company reported adding 7.66 million new customers, reaching a total of 230.75 million subscribers. This growth came at the expense of profit, as Netflix made just $55 million in net income, but it represents a marked turnaround from the first half of 2022.
The company attributes the better-than-expected results to a strong content lineup that includes popular titles such as Glass Onion, Harry & Meghan, and Wednesday. Netflix is cautiously optimistic about the first quarter of 2023 and believes it will see a “modest” boost to its subscriber base. The company also plans to roll out paid account sharing “more broadly” later in the period.
While Netflix may not be back to its peak form, the company is in a more stable position that could provide its new leadership with a strong start. Reed Hastings, who co-founded the company in 1997 and helped build it into the streaming giant it is today, leaves behind a legacy that has forever changed the entertainment industry.
