After 25 years, Netflix co-CEO Reed Hastings has announced that he is stepping down.
The news came as Netflix unveiled its quarterly earnings, which showed a rise of over 7 million subscribers by the end of 2022. Many market observers had expected a decline.
Hastings released a statement on the Netflix website to explain his decision and future steps. The statement said:
“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.”
Hastings also explained that he had spent the last two and a half years delegating management to both Ted Sarandos and Greg Peters. In view of the challenges met over the last few years, Hastings said he believes now is the right time for this succession.
Hastings continued, saying that, as executive chairman, he will be a bridge from the company’s board to its co-CEOs. He is going to focus heavily on philanthropy and ensuring Netflix stock is doing well.
In corresponding moves, Hastings stated that Bela Bajaria will be the chief content officer and Scott Stuber will be the chairman of Netflix Film.