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Netflix founder Reed Hastings steps down as chief executive after publishing better-than-expected quarterly earnings
Netflix boss Reed Hastings has stepped down as CEO of the streaming giant after it reported quarterly subscriber numbers that beat forecasts.
Hastings, who founded the company in 1997 as a DVD mail delivery service, said it was “the right time to complete my succession” and that he would be replaced by chief operating officer Greg Peters, who will be promoted to co chief executive. next to Ted Sarandos.
But Hastings, 62, remains on the board as executive chairman, following other tech tycoons such as Amazon’s Jeff Bezos.
Stepping down: Netflix boss Reed Hastings, who founded the company in 1997 as a DVD mail delivery service, has stepped down as chief exec
The announcement came as Netflix had nearly 7.7 million net new subscribers in the fourth quarter of last year, far exceeding the 4.5 million analysts predicted.
While tightening consumer spending remained a pain point for the company, major releases like Glass Onion, Wednesday, and All Quiet on the Western Front had bolstered the streaming giant.
Profit for the period fell from £490m a year ago to £44m, while revenue rose from £6.2bn to nearly £6.3bn.
Shares rose 6 percent to more than $315 in after-hours trading on Wall Street.
Netflix had a rocky start to 2022, announcing its first drop in paying subscribers in more than a decade in the first half of the year.
The combination of inflationary pressure on households and the broader tech sell-off spelled disaster for Netflix, forcing it to cut hundreds of jobs and raise prices in key markets.