Netflix surpasses 230 million subscribers, co-founder resigns
By Jennifer S Kuwanta
Netflix reported Thursday that it had more than 230 million global subscribers at the end of last year, exceeding analysts’ expectations as hits such as “Wednesday” and “Harry & Meghan” drew in new viewers.
“2022 was a tough year, with a bumpy start but a brighter finish,” the company said in a letter announcing bumper fourth-quarter earnings.
Netflix also announced that co-founder Reed Hastings would step down as CEO, capping a 25-year tenure that saw the company grow from a mail-order DVD rental service to an entertainment behemoth.
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Hastings handed over control of Netflix to two long-term associates, Chief Operating Officer Greg Peters and Ted Sarandos, who has been the face of Netflix in Hollywood and was already named co-CEO.
“It feels like yesterday was our IPO; we were covered in red envelopes,” Hastings said during an earnings call.
“Hopefully, some of you have held the stock for all 21 years.”
Netflix became a publicly traded company in early 2002 at an opening price of $15 a share.
In after-market trades following the release of the earnings figures, shares of the streaming television service rose nearly 7% to $337.31.
Hastings noted in a blog post that the Netflix board has been discussing succession planning for many years, joking that “even founders need to evolve!”
He stated that he would serve as executive chairman, noting that this is a role that many tech titan founders take, citing Amazon’s Jeff Bezos and Microsoft’s Bill Gates as examples.
The change of guard was announced as Netflix reported increased subscribers that exceeded even the most optimistic predictions.
The streaming service said it gained 7.7 million new subscribers in three months, bringing its global membership to 230 million people.
Netflix praised a successful slate of new content that included horror-themed comedy “Wednesday,” saying the “Addams Family” spinoff was the company’s third most popular series ever.
Royal tell-all documentary “Harry & Meghan” also scored, Netflix said, as well as “Glass Onion: A Knives Out Mystery” starring Daniel Craig.
“This is in stark contrast to the first half of the year. Creating the next biggest blockbuster drives subscribers,” said tech and media analyst Paolo Pescatore.”
