Netflix boss quits as number of subscribers grow
Netflix co-chief executive Reed Hastings is stepping down from his role after helping to found the company more than 25 years.
His announcement came as Netflix announced a rise in its subscriber numbers, following a tough time amid a growing cost of living crisis.
Netflix managed to reverse its initial dip in subscribers, with shows such as Stranger Things, Glass Onion, Wednesday and Harry and Meghan helping to bring in more than seven million new subscribers.
“2022 was a tough year, with a bumpy start but a brighter finish,” the company said in a statement.
Mr Hastings was an early pioneer in the streaming business and is seen as one of the original tech industry disruptors.
He is leaving Netflix in a crowded market with plenty of challenges ahead, but Mr Hastings will remain in the company as executive chairman.
Netflix will now be run by Ted Sarandos and Greg Peters, both already in senior executive positions.
“Reed Hastings stepping down from his current role raises a lot of questions about Netflix’s future strategy,” said Jamie Lumley, analyst at research firm Third Bridge.
“Incoming Co-CEO Greg Peters will have a number of major decisions on his plate from managing high levels of expenses, password sharing, and cracking the code to find the next Stranger Things.”
A tough start to 2022
Netflix struggled at the start of 2022. It was facing serious competition from rivals such as Amazon, HBO, Apple, TV and Disney. It cut hundreds of jobs but still found it had to rise membership prices to cover rising costs.
The rise in price had an effect on subscriber numbers.
In November, it introduced a cheaper ad-supported option in 12 countries and suggested it was to start cracking down on password sharing in the future.
Netflix shares, which had fallen by nearly 38% in the past year, rose in after-hours trading following the results announcement.
