Reed Hastings, a co-founder of Netflix, said on Thursday that he will step down as CEO and transfer control of the streaming service to Greg Peters, the company’s COO, and Ted Sarandos, his longstanding business partner and co-CEO.

In after-hours trading, the company’s shares, which had dropped roughly 38% in the previous year, increased 6.1% to $335.05 as the pioneer of streaming video also revealed that it had gained more customers than anticipated at the end of the previous year.

As a result of losing customers in the first half of 2022, Netflix has been under pressure.

Given Covid and recent difficulties in our firm, it was a baptism by fire, Hastings said in a blog post announcing his retirement. But they’ve both handled exceptionally well, so the board and I agree that my succession is now appropriate.

Hastings leaves on a positive note. With the aid of “Harry & Meghan” and “Wednesday,” Netflix revealed that it attracted 7.66 million customers in the fourth quarter, exceeding Wall Street expectations of 4.57 million.

However, earnings per share were just 12 cents, falling short of the 45 cents that Refinitiv’s poll of analysts had predicted.

Through March, Netflix predicted “moderate” subscription growth. With the aid of new revenue sources, it anticipated 4% year-over-year growth in revenue throughout the term.

The business is up against competition from Walt Disney, Amazon, and others who are investing billions of dollars to produce TV series and movies for internet viewers, as well as constrained consumer spending.

Customers stopped using Netflix in the first half of 2022. In the second half, it resumed growing, but the rate of new client additions is still below that of prior years.

In 12 nations in November, Netflix unveiled a less expensive, ad-supported option to jumpstart growth. Plans to cut down on password sharing have also been made public.

“The year 2022 was difficult; it had a rocky beginning but a promising end. In its quarterly letter to shareholders, Netflix stated, “We think we have a clear path to reaccelerate our revenue growth.

At the end of December, the firm had 231 million subscribers worldwide.

Wednesday, the third-most viewed program in Netflix history, had a large audience, the firm claimed. During the quarter, the murder mystery “Glass Onion” and the British royals documentary “Harry & Meghan” both enjoyed success.
From $607 million or $1.33 per share a year earlier, net income decreased to $55 million or 12 cents per share. Revenue increased 1.9% to $7.85 billion, as predicted.

Hastings, 62, co-founded Netflix as a DVD-by-mail company in 1997. He claims the inspiration arose from his annoyance at being charged a $40 late fee for returning a rental of “Apollo 13” to the neighborhood Blockbuster video store.

After upending Hollywood in 2007, the company transformed into a video streaming service, forcing Netflix’s media competitors to pour billions of dollars into their own offerings.\

Some of Hastings’ problems were caused by him, such his scheme to separate the DVD division of the firm into a separate business named Qwikster. This 2011 project lost the business 800,000 subscribers and caused the stock to crash.\
When Netflix disclosed its first subscriber loss in more than ten years in April 2022, the CEO had to negotiate another sharp market decline. This compelled Hastings to reevaluate previously forbidden growth-promoting ideas, such as an ad-supported version of the service.

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