Netflix co-founder steps down as CEO amid major changes to the streaming platform
But he'll remain at the company in a new role.
What you need to know
- Netflix CEO Reed Hastings has announced he is departing from his role at the company.
- COO Greg Peters will step up from his role to take Hastings' place as co-CEO alongside Ted Sarandos.
- Hastings will continue at Netflix as the executive chairman.
In a surprising move on Thursday, Netflix co-founder Reed Hastings announced that he is stepping down from his role as CEO, a position he has held for 25 years.
"I'm so proud of our first 25 years, and so excited about our next quarter of a century," Hastings said in the post. "We can do so much more to better entertain the world and deliver more joy to our members."
Taking his place is Netflix COO Greg Peters, who will be taking the helm as co-CEO alongside Ted Sarandos. Meanwhile, Hastings will remain at Netflix as the executive chairman. He notes that he has increasingly delegated management responsibilities to Peters and Sarandos for more than two years.
"It was a baptism by fire, given COVID and recent challenges within our business," Hastings continues. "But they've both managed incredibly well, ensuring Netflix continues to improve and developing a clear path to reaccelerate our revenue and earnings growth. So the board and I believe it's the right time to complete my succession."
Ted & Greg are now co-CEOs. After 15 years together we have a great shorthand & I’m so confident in their leadership. Twice the heart, double the ability to please members & accelerate growth. Proud to serve as Executive Chairman for many years to come https://t.co/oYc0laqMXQJanuary 19, 2023
The announcement comes as Netflix goes through a major shift in its business model. The streaming giant launched its ad-supported tier in late 2022 following its first subscriber drop in a decade. The company is also gearing up to crack down on freeloaders, where it will charge extra for users not in the same household.
It seems the new direction is paying off, as Netflix reported on Thursday that it saw its subscriber base grow by more than 6 million from the previous quarter to more than 230 million subscribers in Q4 2022. Netflix also saw its revenue increase by roughly 2% year-over-year.
"We start 2023 with renewed momentum as a company and a clear path to reaccelerate our growth," Hastings finishes. "I'm thrilled about Ted and Greg's leadership, and their ability to make the next 25 years even better than the first."
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Derrek is a long-time Nokia and LG fanboy who loves astronomy, videography, and sci-fi movies. When he's not working, he's most likely working out or smoldering at the camera.