Netflix reports and announces the departure of Reed Hastings as CEO
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Thursday, January 19, streaming video service Netflix announced that its co-founder Reed Hastings is stepping down as CEO. He has led the company since its inception in 1997. In 2020, Netflix has two CEOs – in addition to Mr. Hastings, this post was now held by Ted Sarandos, who was previously the director of content. Now Mr. Sarandos will retain his post, and Greg Peters, who previously worked as the COO of Netflix, will become another director of the company.
Mr. Hastings will become the head of the board of directors with executive functions. He noted that changes in the composition of the company’s management were being prepared for more than one year. These changes took effect immediately after the publication of the statement.
At the same time, Netflix released data for the fourth quarter (.pdf). The company reported an increase in the number of paid subscribers by 7.7 million, much better than the 4.6 million expected by analysts, bringing the total number of subscribers to 231 million by the end of December. The company’s fourth-quarter revenue rose 1.9% to $7.9 billion. Net profit fell 11 times to $55 million.
Last year was quite difficult for Netflix – in the first half of the year the number of subscribers was declining, the company’s shares fell by 38% over the year. Despite the shrinking profits, investors reacted positively to the growth in the number of subscribers and the change in the company’s management: Netflix shares rose almost 6% after the publication of this news.
About why Russian streaming companies faced the risk of an outflow of subscribers – in the publication “Kommersant” “The audience looks into the wallet”.
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