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Surprise on Netflix: Reed Hastings resigns as CEO and leaves the reins to Ted Sarandos and Greg Peters

Reed Hastings has surprised Netflix: has announced his resignation as CEO of the company that he has directed for more than twenty years, leaving from now on a new face in a structure with two CEOs: Ted Sarandos and Greg Peters. Sarandos was already CEO of Netflix since 2020, and Peters, who was his COO (Head of Operations) also since 2020, will rise again to share responsibilities with him.

Sarandos was already the visible face of the company in Hollywood, while Peters has been in charge of supervising product development, and has been one of the promoters of everything related to the company’s entry into advertising, in addition to promoting the elimination of the sharing of passwords in the accounts. Hastings, who is resigning after years of preparing a succession plan with Netflix’s board of directors, will not leave the company, but instead will become its CEO. Some time ago he began to gradually leave certain duties of the position in the hands of Sarandos.

The news comes after learning that Netflix has managed to end the year with quite remarkable figures. In the last quarter of 2022, it added 7.66 million subscribers, exceeding the 4.5 average that analysts expected. As for its income, it reached 7.850 million dollars, in line with the estimates.

Of course, its earnings per share during the period, of $0.12, have remained well below what was improved in the same period of 2021. Netflix’s forecasts for the current year indicate that its profit margin and its free cash flow, however, will be better than in 2022.

Sarandos and Peters now have the mission of moving Netflix forward in a period of certain problems for the sector. The company has just reported annual results with its slowest growth rate since 2011. In addition, its shares have lost half their value in 2022, and its increasing cost containment has not been liked by many creatives in the sector.

Everything indicates that there will not be a substantial change in the culture of the company with these appointments. However, there are some new developments in terms of management in certain departments. A) Yes, Bela Bajaria will become Netflix’s new Content Manager, taking over Sarandos’ previous post. Until now she was the company’s Worldwide TV Manager.

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