While releasing its quarterly earnings, Netflix co-founder Reed Hastings announced that after 25 years of leading the company from mailing video disc rentals to becoming a streaming giant, he is no longer the CEO.
In 2020, Hastings appointed Ted Sarandos, the company’s content chief, as co-CEO, and Sarandos will continue in that position but will now share the role with Greg Peters, Netflix’s previous chief operating officer. Additionally, Bela Bajaria is now the company’s chief content officer, and Scott Stuber has been appointed as the chair of Netflix Film.
On the day that Netflix announced that it has 223 million paying subscribers worldwide, Hastings stepped down as the CEO of the company. Netflix has transformed from a content distributor to a major content creator and recently made a deal for a limited theatrical release for the movie Glass Onion, directed by Rian Johnson.
“While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly. As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with,” Netflix stated back then.
Reed Hastings is resigning from his position as co-CEO of Netflix
Netflix is also expanding its gaming business with mobile games and hints at bigger plans in the future.
The change in leadership comes as the company begins to offer ad-supported streaming for the first time and tightens restrictions on password and account sharing, which Hastings had previously opposed until a drop in subscribers last spring, the first time in a decade, prompted the company to re-evaluate its position.
Starting today, Greg Peters will step up from COO to become Ted’s co-CEO. Going forward, I’ll be serving as Executive Chairman, a role that founders often take (Jeff Bezos, Bill Gates, etc.) after they pass the CEO baton to others. 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. In addition, they can always be relied upon to put Netflix’s interests first. These qualities — combined with their complementary skill sets, deep knowledge of entertainment and technology, and proven track record at Netflix — create a unique opportunity to deliver faster growth and greater success long term with them as co-CEOs.
Looking back, 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 skepticism. Greg has been instrumental in driving our partnerships, building and launching advertising, pushing us into deeper personalization, rebuilding our talent organization 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 Hastings, Founder and Executive Chairman of Netflix
Hastings will serve as executive chair, as stated above in his statement announcing the change, a position he plans to hold “for many years to come.”
Ted & Greg are now co-CEOs. After 15 years together we have a great shorthand & I’m so confident in their leadership. Twice the heart, double the ability to please members & accelerate growth. Proud to serve as Executive Chairman for many years to come https://t.co/oYc0laqMXQ
— Reed Hastings (@reedhastings) January 19, 2023
