Hollywood Netflix co-CEO Reed Hastings quit unexpectedly after nearly 25 years at the helm, marking a sea change for the liberal streamer.
His departure comes after Netflix’s stock dropped by over 50% in 2022, the company’s worst year in over a decade.
In the fourth quarter earnings report released on Thursday, Reed Hastings, one of Hollywood’s most loyal Democrat funders, made the revelation. He also announced that Greg Peters, formerly chief product officer and COO, and Ted Sarandos, formerly chief content officer, will share the role of co-CEO.
Hastings has stated that he will remain in his current position as executive chairman.
Hastings, who had worked for Netflix since the company began as a DVD mail-order business, abruptly left the company without giving a statement explaining his decision.
According to Breitbart News, Netflix has had its worst year in almost a decade, with shares plummeting more than 50 percent in 2022 and losing an astounding $136 billion market value.
Thus, the awake streamer is under pressure to experiment with alternative income streams. To enter the advertising industry amid uncertain membership growth, Netflix betrayed its original vow to never have advertisements by introducing an ad-supported tier.
Hastings wrote on succession planning on Netflix’s official blog on Thursday, saying the board has been debating the topic for years.
Hastings said he had “increasingly handed administration of Netflix” to Sarandos and Peters. “Given the current state of COVID and the difficulties we’ve been having in the business, it was a learning experience through and through. They have done an outstanding management job, ensuring that Netflix keeps improving and charting a course to reaccelerate our sales and profitability growth.
He explained that the board and I agreed that now was the moment to finalize my succession.
Hastings has consistently donated millions to Democratic Party presidential candidates, including Barack Obama, Hillary Clinton, and Joe Biden, making him one of the party’s most reliable big-ticket fundraisers. He has supported liberal California office candidates, such as the lenient Los Angeles District Attorney George Gascon.
Hastings has led Netflix to strike a production contract with the Obamas, who are now creating both nonfiction and fictional material for the streaming service.