Netflix founder Reed Hastings steps down as chief executive after posting better-than-expected quarterly numbers
Netflix boss Reed Hastings has resigned as the streaming giant’s chief executive after reporting higher-than-expected quarterly subscriber numbers.
Hastings, who founded the company in 1997 as a DVD mail delivery service, said it was “a good time to complete my succession” and he would be replaced by chief operating officer. Greg Peters, who will be promoted to co-general manager. alongside Ted Sarandos.
But Hastings, 62, will continue to serve on the board as executive chairman, along with other tech moguls such as Amazon’s Jeff Bezos.
Stepping back: Netflix boss Reed Hastings, who founded the company in 1997 as a DVD mail delivery service, has resigned as chief executive
The announcement came as Netflix added nearly 7.7 million net new subscribers in the fourth quarter of last year, well ahead of the 4.5 million forecast by analysts.
Although tighter consumer spending continues to be a sore spot for the company, hit releases like Glass Onion, Wednesday and All Quiet on the Western Front have bolstered the streaming giant.
Profit for the period fell to £44m from £490m a year ago, while revenue rose to almost £6.3bn from £6.2bn.
Shares jumped 6% to over $315 in after-hours trading on Wall Street.
Netflix got off to a rocky start to 2022, reporting its first drop in paid subscribers in over a decade in the first half.
The combination of inflationary pressure on households and massive tech selloffs spelled disaster for Netflix, forcing it to cut hundreds of jobs and raise prices in key markets.