Reed Hastings is reportedly giving up his position as co-CEO of Netflix Inc., a company he co-founded more than 25 years ago. His declaration coincided with the streaming giant’s end-of-year announcement of a significant uptick in subscriber figures.
Sources claim that people were anticipated to cut back on streaming services when finances were tight. Netflix, however, defied expectations and added more than seven million new customers, bucking the trend. The film Glass Onion, Harry and Meghan's disclosures, and the new Addams Family spin-off series Wednesday all attracted a lot of viewers.
The business declared in a statement that 2022 was a trying year, with a rough start but a stronger climax. With 231 million subscribers worldwide, he is leaving Netflix in a competitive market where there are more hurdles to overcome.
Mr. Hastings, who was a trailblazer in the streaming sector and is regarded as one of the first revolutionaries of this industry, will continue in his role as executive chairman. Ted Sarandos and Greg Peters, who both hold senior management positions, will now lead the company.
Experts assert that Reed Hastings' resignation from his position raises a lot of doubts about Netflix's future strategy. Incoming co-CEO Greg Peters will have several consequential decisions on his plate, including controlling password sharing, relieving high levels of costs, and solving the mystery of the next Stranger Things.
It is worth mentioning that the total subscribers for the final three months of 2022 climbed by 7.66 million, exceeding the firm's forecast of a gain of about 4.5 million, giving Mr. Peters a solid start.
Analysts note that were two factors that allowed Netflix to maintain its subscriber base, the first of which is that viewership numbers show improved retention on popular shows; and second, Netflix’s introduction of an ad-supported service to anyone wishing to suspend or terminate their membership.
Notably, in the fourth quarter, revenue increased to USD 7.9 billion. However, the returns for the year as a whole dropped from 2021, and it was fairly low in this quarter than it was during the same time last year.