Reed Hastings Netflix’s Co-CEO has Stepped Down
Netflix’s founder, Reed Hastings, is stepping down from his role as Co-CEO and will now be the Executive Chairman of the company. He’s passing the co-CEO baton to Ted Sarandos and Greg Peters.
Hastings started Netflix in 1997, revolutionising how we watch movies and shows with DVD rentals by mail and streaming. Under his leadership, Netflix disrupted traditional movie rental businesses and invested heavily in original content. There were some hiccups along the way, like an ill-fated plan in 2011 to split DVD and streaming services.
However, last year, Netflix faced tougher competition and lost some subscribers. To combat this, they introduced a cheaper, ad-supported subscription tier, and it seems to be working. Netflix added more subscribers than expected in the last quarter of the year and reported strong growth thanks to popular original shows like “Wednesday” and “Harry & Meghan.”
Netflix also plans to crack down on password sharing and increase revenue through paid subscriptions. The company’s revenue for the final quarter of last year was over $7.8 billion, and they’re forecasting further growth this year.
Although Hastings is stepping down, Netflix believes their new co-CEOs, Sarandos and Peters, are well-suited to lead the company and continue its success. Sarandos is known for his role in content operations and pushing Netflix into original content, while Peters has a strong background in operations and product development.
This leadership change formalises how Netflix has been operating internally, and it comes at a time when the company is evolving to face new challenges and opportunities.