Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Business

Reed Hastings, co-founder of Netflix, steps down

The Netflix co-founder Reed Hastings is stepping aside as co-chief executive of the world’s largest streaming service as it returns to growth.

Ted Sarandos, co-chief executive since 2020, is joined by Greg Peters, who had been serving as chief operating officer, with immediate effect.

Hastings, 62, said it was the “right time” for him to become executive chairman of the group. He plans to spend more time on philanthropy, but stressed that he would “remain very focused” on his company’s stock market performance.

It follows an extraordinary year for shares in Netflix, which halved after its subscriber base slipped into decline for the first time in a decade. They later recovered ground, as the group moved aggressively to revitalise its fortunes, including by ditching a longstanding aversion to advertising and launching a discounted tier in November.

The platform attracted 7.66 million subscribers in the last quarter — beating guidance of 4.5 million — as it released popular series including Harry & Meghan, featuring the Duke and Duchess of Sussex, and Glass Onion, the latest of the Knives Out movies.

Shares in Netflix rose $22.42, or 7.1 per cent, to $338.20 during out-of-hours trading last night.

Hastings compared his transition to that of Jeff Bezos at Amazon, or Bill Gates at Microsoft, and said he had already been delegating management to Sarandos and Peters over the past two years.

“It was a baptism by fire, given Covid and recent challenges within our business,” Hastings wrote in a blog post. “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.”

Netflix, which launched in 1997 as a DVD postal service, is the leader of the crowded streaming market. With a market value of $142 billion, the group is based in Los Gatos, California. It finished December with a global subscriber base of 231 million paying users.

Revenue rose 1.9 per cent to $7.85 billion during the last three months of 2022, in line with expectations on Wall Street. Net income, however, fell sharply from $607 million to $55 million.

Netflix scrambled to revive user growth last year, incorporating adverts and moving to persuade the estimated 100 million additional households accessing its service for free by using others’ accounts to start paying.

Hastings’ decision to relinquish day-to-day management after more than two decades marks the end of an era for the company, which helped to pioneer the online video streaming market. It has faced intense competition in recent years, as established heavyweights — from Disney to Warner Bros — spent billions constructing rival platforms

“I’m so proud of our first 25 years, and so excited about our next quarter of a century,” Hastings wrote. The company begins 2023 “with renewed momentum,” he added, “and a clear path to reaccelerate our growth.”

It forecast revenue of $8.2 billion for the current quarter, up 3.9 per cent on the year, and profits of $1.29 billion.

Read more:
Reed Hastings, co-founder of Netflix, steps down

    You May Also Like

    Business

    In the realm of luxury home and décor, few names resonate with as much prestige and elegance as Englanderline. As a leading luxury home...

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    Specialists in connecting brands to youth audiences Rocket are a marketing and content business that helps brands and organisations better understand and better engage...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved