reed hastings resigns from netflix

The founder of arguably the most successful streaming platform in the world – Netflix – resigned after spending 25 years of his life building a service that has changed the way the world watches movies and TV shows.

Reed Hastings, the 52-year-old now-former Chief Executive Officer of the Los Gatos-based streaming company will leave his post effective immediately according to the company’s official SEC filing published alongside its Q4 2022 earnings report.

Ted Sarandos, who was appointed co-CEO of Netflix (NFLX) back in July 2020 will lead the firm along with Greg Peters, who was appointed the new co-CEO of the firm on 13 January this year.

Hasting’s legacy is hard to beat by any successor as he turned a DVD-delivery service into the world’s largest streaming platform in the world by paid members with a subscribership of nearly 231 million as of December 2022.

Hasting’s Legacy Will Be Hard to Beat

One of the most successful initiatives promoted by Hastings was the creation of original content. Some of those TV shows and movies have become the reason why millions of people have subscribed to the service including memorable productions like The Crown, Money Heist, Stranger Things, and Black Mirror.

The long-tenured CEO and founder of the streaming service also navigated successfully the troubled waters of the pandemic and managed to turn the tables in favor of the business as Netflix attracted millions of subscribers who spent hours watching the platform’s content while confined within their homes.

However, the platform has been experiencing some issues to keep luring consumers toward its service as competition is heating up in the space with services such as Apple TV, Prime Video from Amazon (AMZN), and Disney+ creating powerful offerings that have copied, to some extent, the most successful aspects of Netflix’s business model.

In regards to his appointment as co-CEO, Peters commented: “I feel humbled and privileged to become co-CEO of Netflix. Ted and I have worked together for many years – building tremendous trust and respect for each other. We’re also motivated by the same goal: a desire to better serve our members so that we can continue to grow our business.”

Hastings will maintain an active role within the firm serving as Executive Chairman of the Board of Directors. In addition, Bela Bajaria has been promoted to Chief Content Officer of Netflix after spending several years as the firm’s Head of Global TV while Scott Stuber will become the Chairman of Netflix Film.

Ted Sarandos, perhaps considered the most direct successor to Hastings in terms of leadership and authority, commented the following in regard to these changes: “I want to thank Reed for his visionary leadership, mentorship and friendship over the last 20 years. We’ve all learned so much from his intellectual rigor, honesty and willingness to take big bets – and we look forward to working with him for many more years to come”.

He added: “Since Reed started to delegate management to us, Greg and I have built a strong operating model based on our shared values and like-minded approach to growth. I am so excited to start this new chapter with Greg as co-CEO.”

Netflix (NFLX) Stock Reacts Positively to Beyond-Expected User Growth in Q4 2022

Netflix’s shares are rising by 6.4% thus far in today’s stock trading session a day after the company reported a positive earnings report that included a surprising jump in its number of paid members.

During the fourth quarter of 2022, the streaming service managed to add 7.66 million new paid members to its user base. For this same period, Wall Street expected a net addition of 4.5 million.

The firm closed the year with total revenue of $31.62 billion resulting in a 6.5% jump compared to 2021 while GAAP operating profits stood at $5.63 billion resulting in a 3.1% decline in its operating margins – which stood at 17.8% – compared to the previous year.

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