Home Lifestyle Netflix: Reed Hastings is stepping down as co-CEO after a difficult year for the streaming platform

Netflix: Reed Hastings is stepping down as co-CEO after a difficult year for the streaming platform

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On Thursday, January 19, Netflix co-founder Reed Hastings stepped down as co-CEO after 25 years at the helm of the company, which announced the news in its fourth-quarter earnings report.

Former Operations Manager Greg Peters will replace Reed Hastings As Co-CEO of Netflix. will join the current co-CEO, Ted Sarandoswhile Reed Hastings will remain as CEO of the company.

The streaming platform said in its fourth-quarter earnings report 230.75 million subscribersAn increase of 7.66 million over the third quarter. In addition, Netflix recorded a turnover of $7.85 million In the fourth quarter, about 1.2% higher than the $7.7 billion recorded in the same period last year, in line with analyst expectations.

Meanwhile, the company’s net profit is down from last year. It is now $55 millionor to $0.12 per shareversus $607 million a year ago and less than analysts’ expectations of $0.45 per share.

She owns shares of Netflix It increased by about 5% As soon as the fourth quarter results are released. As a reminder, the streaming platform’s stock price has 37% dive In 2022, much more than the 23% decline in the Nasdaq.

According to the latest estimates ForbesReed Hastings net worth is 3.3 billion dollars. At 62, he owns about 2% of Netflix, which went public in 2002. Ted Sarandos was promoted to co-CEO in 2020.

The fourth-quarter earnings report marks the end of a tough year for Netflix. In the first quarter, the company reported losses in subscribers for the first time in a decade. These losses continued into the second quarter. However, the streaming platform gained in subscriber recruitment in the third quarter, reversing subscriber losses recorded in the first half of 2022. The company has blamed those losses in part on households whose accounts and passwords are shared, and has launched several test programs. In some states to combat this problem. In November, Netflix also launched a cheaper ad-supported service to increase its subscriber base. However, Digiday reported last month that the platform was not meeting the expectations of its advertiser audience, and Wall Street Journal Post a series of statements indicating this Only 9% of new users From Netflix Subscribe to the ad-supported service within the first month of its launch. However, Netflix series and movies released in 2022 have set record rates.

Reed Hastings tweeted that he will remain CEO “for many years to come” and that he has “great confidence” in the leadership of Greg Peters and Ted Sarandos. “Poor core ability, poor ability to make users happy and accelerate growth,” wrote Reed Hastings. He also said he plans to spend “more time on philanthropy” and wants to focus on Netflix stock. The former co-CEO of the streaming platform even compared himself to Bill Gates and Jeff Bezos, explaining that they “set an example for other CEOs to follow.”

Translated article from the American magazine Forbes – Author: Marisa Delato

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