Netflix Co-CEO Steps Down As Q4 Financial Report Misses On Earnings

Reed Hastings, Netflix founder and CEO, said Thursday that he would resign as co-CEO. The streaming company survived. “tough year” Subscriber ups or downs and not meeting adjusted earnings expectations for the final quarter.

Hastings, who will now serve as the company’s executive chairman, passed the baton to chief operating officer Greg Peters.

Peters will join Ted Sarandos as Netflix’s current co-CEO. Hastings promoted Peters to this position in July 2020. He began to transfer management responsibilities to Peters and Peters over two and a half years.

“It was a baptism by fire, given COVID and recent challenges within our business,” Hastings wrote. “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,” He concluded.

Hastings’ announcement coincides with Netflix’s fourth quarter financial results after the bell. Yahoo Finance It showed mixed subscriber growth of 7.66 million against forecasts of 4.5million and adjusted earnings that were below expectations.

Bloomberg reported that company revenue was $7.85 billion, compared to the $7.86 trillion expected. Adjusted earnings per share were $0.12, versus $0.58 expected.

Variety published the following announcement: reported Netflix shares rose approximately 6% to $315.78 per Share.

“2022 was a tough year, with a bumpy start but a brighter finish,” The company sent in a letter To shareholders “We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering,”

“As always, our north stars remain pleasing our members and building even greater profitability over time.”

According to the report, its Q4 content outperformed the company’s high expectations, with “Wednesday” It was ranked as the third most watched series of all time. “Harry & Meghan” The second most watched documentary series is and “Glass Onion: A Knives Out Mystery” The fourth most watched Netflix film.

Netflix has released its second quarterly report “better-than-expected” Results earlier this year showed that the streaming service lost only half of its two million subscribers.

The report revealed that approximately 970,000 subscribers cancelled their memberships during the spring and the summer months. This is after the service suffered a huge hit in the second trimester, which saw it lose 200,000 subscribers between January & March.

The company partly blamed the decline in subscribers during the first quarter on competition with other streaming services and massive accounts sharing, the war between Russia-Ukraine, and the global recession. Netflix officials advised shareholders at the time that the U.S. dollar strengthening and weakening global currencies could cause disruption to its international market which accounts for about 60% of its revenues.

“It’s not easy to build a large and profitable streaming business,” The shareholder letter stated. “But we’re competing from a position of strength, as we lead the industry in terms of engagement, revenue and streaming profit. As a pure-play streaming company, we’re also not anchored to shrinking legacy business models, like traditional entertainment firms, allowing us to lean hard into the big growth opportunity ahead of us.”

JustWatch, a streaming guide that covers 120 countries, stated to The Daily Wire, that Netflix experienced a decline throughout 2022. This led to Amazon Prime Video becoming a market leader in subscription video-on demand (SVOD).

“In a historic shift, Prime Video is now the SVOD market leader in the U.S. and now holds a 1% lead over Netflix,” A spokesperson said. “Disney+ edged out HBO Max for third place, maintaining a 5% margin to Netflix. Apple TV+ dropped 1% in Q4, and is now tied with Paramount+.”