Reed Hastings is stepping down as CEO of Netflix with immediate effect. He says now is “the right time” to pass the baton after nearly 25 years as the company’s chief executive. Ted Sarandos will remain co-CEO and Greg Peters will be the second co-CEO.
Hastings says that he has worked for years on his succession. That is why Sarandos was appointed co-CEO in July 2020 and Peters then became chief operating officer. In recent years, Hastings has shifted more and more tasks to these two. Now that Netflix has chosen “a clear path to accelerate our revenue and profit growth again,” Hastings said, now is the right time to make way for its successors, the co-founder said. He says that this decision was made together with the board of directors.
The ex-CEO will not leave the company, but will remain involved with Netflix as executive chairman. In that role, he says he wants to play a bridging role between the board of directors and the two CEOs. He also wants to spend more time on philanthropy and says he will “remain focused that Netflix’s stock market value continues to do well.”
Sarandos, according to Hastings, had a major role in developing Netflix’s plan to create your own TV series and movies. In recent years, Peters has focused on Netflix advertising, personalizing Netflix and partnering with third-party companies. Bela Bajaria will be the company’s new COO.
Netflix has grown under Hastings’ leadership from a DVD rental company to the global streaming service it is today. Hastings was not the first CEO, but took over that role in 1999 from the other co-founder, Marc Randolph. Until early 2022 Netflix subscriber numbers only increased, but now is that growth lagging behind Netflix’s Goals. To turn the tide, Netflix wants to prevent account sharing and introduce advertising subscriptions, among other things.
