Netflix CEO Reed Hastings steps down from role

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Reed Hastings co-founded Netflix alongside Marc Randolph 25 years ago as a DVD-by-mail service. Now after over two decades, the 62-year-old confirmed that he’ll be giving up his CEO role as new leadership is delegated.

Launching back in 1997, Reed has been at the head of Netflix for over 20 years as the streaming platform has become a global phenomenon.

However, on Thursday the entrepreneur announced that he’ll be stepping down in his role as CEO with the position going to his longtime associates Ted Sarandos and Greg Peters.

Ted was promoted to the role back in 2020 with Greg, who was the company’s COO and Chief Product Officer, now becoming Ted’s co-CEO.

Although he will continue to be part of the company as Executive Chairman which he commented is a position many founders take when handing over the CEO baton.

The hierarchy shake-up will happen effective immediately with Reed confirming in a statement that over the past two and a half years he’s been increasingly delegating the management of Netflix to them.

In a statement, the former CEO wrote: “Ted, Greg and I have been working closely together in different capacities for 15 years.

“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.

“Ted and Greg have developed great trust and respect for each other through their collective successes and failures.

Praising Ted and Greg ahead of their new roles, the founder assured people that the two men can be relied upon to put Netflix’s interests first.

He added: “Ted had the early foresight and skill to push into original programming, changing our trajectory as a company.

“He then moved quickly to expand into international originals, film, animation, and unscripted bets that have helped broaden our content slate and which took courage given all the scepticism.

“Greg has been instrumental in driving our partnerships, building and launching advertising, pushing us into deeper personalization, rebuilding our talent organisation and helping to strengthen our culture.

“He also spent several years in Japan, launching our early efforts in Japanese originals as the country’s general manager, and is currently building out our games initiative.”

Reed informed people that he’ll be helping Greg and Ted as they transition into their new roles as he commented on becoming a bridge between the board and Netflix’s co-CEOs as they settle in.

Along with now being the executive chairman, the 62-year-old will be spending more time on philanthropy and staying focused on Netflix’s stock doing well.

The structure shake-up comes after Netflix reported that 7.7 million subscribers were added in the fourth quarter, exceeding expectations.

The huge surge is speculated to have come from shows such as the Addams Family spin-off Wednesday along with the royal documentary Harry and Meghan.

According to Financial Times, the streaming platform ended 2022 with a total of 231 million subscribers, only adding 8 million for the entire year which made it the worst annual growth in a decade.

In a letter to investors, the company said “2022 was a tough year, with a bumpy start but a brighter finish”.

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