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Major shakeups are coming to Netflix as current co-CEO Reed Hastings announced Thursday he will be resigning as the main decision maker for the streaming giant.
Hastings announced in a letter posted to the company’s website that he will be assuming the role as executive chairman, a role he says is often assumed by founders.
“I’m so proud of our first 25 years, and so excited about our next quarter of a century. We can do so much more to better entertain the world and deliver more joy to our members,” Hastings wrote.
Hastings’ co-CEO Ted Sarandos will remain in that role, with current chief operating officer Greg Peters being promoted to join Sarandos atop the company pyramid.
Sarandos was named co-CEO in July 2020. Hastings said the company has been eyeing its succession plan for the last several years and he has been slowly delegating more and more responsibility.
“Ted, Greg and I have been working closely together in different capacities for 15 years,” Hastings wrote. “As is common in long, effective relationships, we’ve all learned how to bring out the best in each other. I look forward to working with them in this role for many years to come.”
The announcement comes hours after Netflix reported its latest earnings to investors.
The company says it added more than 7.6 million paid subscribed during the fourth quarter of 2022, exceeding its own expectation of 4.5 million.
Netflix has struggled to retain customers in an extremely competitive streaming industry with major players like Disney, HBO and Paramount.
To combat the slumping numbers, Netflix launched a cheaper, ad-supported streaming service. This latest report is the first to include that cheaper tier in its earnings.
Netflix lost customers in the first half of 2022, but won some back in the second half of the year. Still, new customers are lagging compared to previous years on record with fewer competitors, according to Reuters.
“Net income fell to $55 million or 12 cents per share, from $607 million or $1.33 per share a year earlier. Revenue rose 1.9% to $7.85 billion, in line with expectations,” according to Reuters.
The company’s global subscriber was 231 million at the end of 2022.
“I’ll be helping Greg and Ted, and, like any good Chairman, be a bridge from the board to our co-CEOs. I’ll also be spending more time on philanthropy, and remain very focused on Netflix stock doing well,” Hastings added.
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