Netflix Co-Founder Reed Hastings Steps Down as Co-CEO; Sarandos, Peters to Serve as Co-CEOs
In conjunction with the release of Netflix’s fourth quarter 2022 earnings report, the company’s co-founder Reed Hastings announced that he was stepping down as co-CEO. He will be replaced by former chief operating officer Greg Peters as co-CEO alongside the streamer’s head of content Ted Sarandos. Hastings will remain as the Netflix executive chairman.
“We start 2023 with renewed momentum as a company and a clear path to reaccelerate our growth,” Hastings said. “I’m thrilled about Ted and Greg’s leadership, and their ability to make the next 25 years even better than the first.”
After launching Netflix alongside Marc Randolph more than 25 years ago, Hastings shepherded the company from sending out DVDs in red envelopes to essentially inventing an entire industry by jumpstarting the streaming revolution. Randolph, the company’s original CEO, passed the mantle to Hastings in 1999 to focus on product development and eventually left Netflix in 2022.
Hastings ran the company on his own until promoting Sarandos to co-CEO and Peters to COO in July 2020, as all of streaming was benefiting from the impacts of the COVID-19 pandemic.
“In the last 2½ years I’ve increasingly delegated the management of Netflix to [Sarandos and Peters],” Hastings said. “It was a baptism by fire, given COVID and recent challenges within our business. But they’ve both managed incredibly well, ensuring Netflix continues to improve and developing a clear path to reaccelerate our revenue and earnings growth. So the board and I believe it’s the right time to complete my succession.”
The executive notes that he is now following in the footsteps of Jeff Bezos and Bill Gates by moving from founder to executive chairman. Having worked alongside the two new CEOs in different roles for nearly 15 years, Hastings said that he looks forward to continuing that relationship with both of them for many years to come.
The outgoing CEO praised Peters for his ability to build partnerships and launch products, from the recent ad-supported tier to spearheading the service’s launch in Japan.
“I feel humbled and privileged to become co-CEO of Netflix,” Peters said. “Ted and I have worked together
for many years – building tremendous trust and respect for each other. We’re also motivated by the
same goal: a desire to better serve our members so that we can continue to grow our business.”
Of Sarandos, Hastings cited the vision of the company’s content chief to understand where the streaming industry was headed before anyone else, and what Netflix needed to do in order to position itself long-term.
“Ted had the early foresight and skill to push into original programming, changing our trajectory as a company,” Hastings said. “He then moved quickly to expand into international originals, film, animation, and unscripted — bets that have helped broaden our content slate and which took courage given all the skepticism.”
After thanking Hastings for his leadership, Sarandos emphasized that he and Peters had already worked on important initiatives together at Netflix and that their similar philosophies will allow them to take the company to new heights.
“Since Reed started to delegate management to us,” Sarandos said, “Greg and I have built a strong operating model based on our shared values and like-minded approach to growth. I am so excited to start this new chapter with Greg as co-CEO.”
In addition to these changes, Bela Bajaria, who previously served as the company’s Head of Global TV, has become Netflix’s new chief content officer. Scott Stuber has also been named the chairman of Netflix Film.
“Bela and Scott are outstanding creative executives with proven track records at Netflix,” Sarandos said. “In 2022 we premiered many of our most popular series and films in Netflix history, including Wednesday, Glass Onion: A Knives Out Mystery, Purple Hearts, Monster: The Jeffrey Dahmer Story, The Adam Project and Harry & Meghan – a testament to their leadership and creativity. I couldn’t be more excited to work alongside them as we seek to delight audiences for years to come.”
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.