Netflix co-CEO Reed Hastings Resigns
In order to transfer the keys over to longtime partner and co-CEO Ted Sarandos and chief operating officer Greg Peters, Netflix Inc. co-founder and CEO Reed Hastings resigned from his position as the company’s chief executive.
Netflix co-CEO Reed Hastings Steps Down: Key Points
- In after-hours trading, Netflix shares increased 6.1% to $335.05 as the pioneer of streaming video also revealed that it had gained more customers than anticipated at the end of the previous year.
- As a result of losing consumers in the first half of 2022, the company has been under pressure.
- Its stock, once a favourite on Wall Street, has decreased by about 38% in the previous 12 months.
- Hastings will serve as executive chairman and share the role of chief executive with Sarandos and Peters.
- The decision, which is the result of ten years of board succession planning, is effective right away.
- Peters and Sarandos both received promotions in July 2020, which came at a difficult time for the business.
- Hastings left as Netflix announced that it added 7.66 million subscribers in the fourth quarter, above Wall Street expectations of 4.57 million thanks to the success of “Harry & Meghan” and “Wednesday” in the competition to draw viewers for streaming television.
- However, earnings per share were only 12 cents, falling short of the 45 cents that Refinitiv’s poll of analysts had predicted.
Netflix Subscription Growth
Through March, Netflix predicted “moderate” subscription growth. With the aid of new revenue streams, it anticipated 4% year-over-year growth in revenue during the term.
Walt Disney Co., Amazon.com Inc., and other companies are investing billions of dollars to produce TV series and movies for online audiences, putting the corporation up against constrained consumer spending and competition.
Netflix Ups and Down in Customer Growth
Customers stopped using Netflix in the first half of 2022. The second half saw a return to growth, but the rate of new client additions is still below that of recent years.
In November, Netflix launched a less expensive, ad-supported option in 12 nations to jumpstart growth. Plans to cut down on password sharing have also been made public.