Reed Hastings to step down as Netflix CEO

Reed Hastings, co-founder of Netflix, is stepping down from the CEO submit on the firm he based 25 years in the past.

Ted Sarandos and present COO Greg Peters will lead the streaming video service as co-CEOs, Netflix introduced

Hastings mentioned he plans to proceed as govt chairman, a stepped-back position usually taken by firm founders as a part of a succession plan.

The corporate was a pioneer in dwelling leisure. Its modern DVD-by-mail service, adopted by streaming video over the web, contributed to the demise of bodily film rental shops whereas prompting studios and TV networks to launch their very own related providers. Whereas Netflix struggled with subscriber losses earlier this yr, it now boasts 230 million subscribers, a rise of seven million from three months in the past. 

Hastings’ departure is “a giant psychological change for Netflix,” analysts at GlobalData mentioned in a observe.

“With Hastings remaining as Chairman, his experience will nonetheless be obtainable to the corporate. Nonetheless, there’s a small threat that the tradition of the corporate might change and change into extra cautious, particularly as financial uncertainty persists. This may be much like the shifts which have occurred at Amazon since Jeff Bezos stepped down.”

Netflix inventory jumped in after-hours buying and selling, gaining 5%.

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