Netflix co-founder Reed Hastings stepped down as CEO.

Netflix co-founder Reed Hastings stepped down as co-CEO, handing over control of the company to co-CEO Ted Sarandos and COO Greg Peters. He will now be Executive Chairman. Meanwhile, shares of Netflix rose 6.1% to $335.05 hours later as the company reported more subscribers than expected in late 2022.

Hastings’ resignation comes after Netflix reported 7.66 million new subscribers in the fourth quarter, beating Wall Street’s expectations of 4.57 million thanks to Harry and Meghan and Wednesday. Experts polled by Refinitiv expected earnings per share to be 45 cents, but the actual figure was 12 cents. Netflix expects “moderate” subscriber growth in March.

The board has planned the transition over the past decade and the leadership change is effective immediately. When business took a hit in July 2020, both Peters and Sarandos were promoted. In the first half of 2022, the company was under pressure due to the departure of its customers. Once Wall Street’s most popular company, shares have fallen about 38% in the past 12 months.

The number of Netflix users decreased in the first half of 2022. Although it resumed growth in the second half, the new customer inflow rate is still lower than in recent years. In November, Netflix launched an affordable, ad-supported version in 12 countries to speed up development. We have also taken steps to reduce password sharing.

Supported by the new revenue stream, Netflix expects revenue growth of 4% per year over the period. Consumer spending is declining, and the company is competing with Walt Disney, Amazon, and other rivals that pour billions into producing TV shows and movies for online audiences.