After a complicated 2022 which saw Netflix enter the advertising market, the largest SVOD service is announcing a change in management. Reed Hastings, who created Netflix in 1997, gives way to the duo Ted Sarandos and Greg Peters.
It is the end of an era, even if this change should not be dramatized.
After 25 years at the helm of Netflix, which grew from a DVD delivery service to a film and audiovisual giant under his management, Reed Hastings stepped down as co-CEO of the streaming service on January 19, 2023. If he does not leave Netflix for all that (he becomes the chairman of its board of directors, like many other founders who have retired from their companies), Reed Hastings has decided to cede the management of his company with two of its right arms. Ted Sarandos, who already held the position of co-CEO at his side, and Greg Peters, who was in charge of the product, will share the heavy task of boss of Netflix.
A transition desired by Reed Hastings
If the introduction to this article specifies that it is not a drama, it is because this transition is wanted by Reed Hastings. He had started it in 2020 by appointing Ted Sarandos by his side. In a press release published on the Netflix site, the co-founder of the service is ironic about the situation: “even the founders need to evolve”. He explains that he has been delegating gradually for 2 and a half years, precisely to arrive at this day which he considers ” the good moment “. Tells him to prepare to lead the board of directors for several years, but also indicates that he wants to find time for philanthropic actions.
Netflix is fine
Netflix’s management change was announced as part of its financial results release, which bears little resemblance to those released a year earlier.
In 2022, Netflix was losing subscribers and was forced to announce the arrival of a cheaper version of its service, with advertisements, to regain growth. In 2023, Netflix begins the year with a gain of 7.66 million subscribers, an increase significantly higher than projections. It makes it possible to exceed 230 million users worldwide. Reed Hastings ends his reign in style, even if “the next 25 years” of his successors, as he says himself, promise to be tough.
In addition to the appointment of its new CEOs, Netflix has announced other major internal promotions. Bela Bajaria, the former head of the television department, takes on the role of content manager. Scott Stuber, already in charge of films, takes on the more official title of “president of Netflix Film”. Throughout its presentation, Netflix reaffirmed its desire to be a giant of original content, after many successes in 2022. Reed Hastings is obviously ready to advise them.
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