According to the platform’s letter to shareholders, Hastings is leaving his role to “focus on his philanthropy and other pursuits”.
Netflix co-founder Reed Hastings announced he will not stand for re-election to the company’s Board when his current term expires at the Annual Meeting in June.
According to the platform’s letter to shareholders, Hastings is leaving his role to “focus on his philanthropy and other pursuits”
Reed Hastings, Netflix co-founder and Chairman said: “Netflix changed my life in so many ways, and my all-time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service. My real contribution at Netflix wasn’t a single decision; it was a focus on member joy, building a culture that others could inherit and improve, and building a company that could be both beloved by members and wildly successful for generations to come. A special thanks to Greg and Ted, whose commitment to Netflix’s greatness is so strong that I can now focus on new things.”
Ted Sarandos, Netflix co-CEO, said: “Reed has been a singular source of inspiration for me, personally and professionally, since we met in 1999. I’ve had the privilege of working for, and alongside, a true history maker and I look forward to marveling at all he will do next. He has modeled for Greg and me a selfless, disciplined leadership style that will continue to shape how we lead Netflix in the exciting times ahead.”
Greg Peters, Netflix co-CEO, said: “Reed will always be Netflix’s founder and biggest champion – he is a part of our DNA. His vision, entrepreneurship, and steadfast commitment to our values have shaped every stage of our journey and continue to shape how Ted and I lead Netflix today.”
The announcement came alongside the company’s financial report, in which they stated revenue in Q1 grew 16% year over year, driven primarily by membership growth, higher pricing, and increased ad revenue. Revenue was slightly above our forecast due to higher than forecasted membership growth and favorable F/X movements net of hedging.
Operating income in Q1 was US$4.0B, up 18% year over year, and operating margin of 32.3% was up versus 31.7% in Q1’25. Both operating income and margin were slightly above our forecast owing to higher-than-forecasted revenue.
As for the future, Netflix announced plans to invest more in original content, including series and films, live programming, podcasts and games; use techonogly like AI to improve the service; and improve monetization.
“In summary, the entertainment industry remains extraordinarily vibrant and intensely competitive. Today, our competitive set includes Alphabet, Amazon, Apple, Comcast, Disney, local media companies around the world, Meta, Roblox, and TikTok, to name a few. We believe we have meaningful advantages as we strive to become a must-have service for consumers: a strong global brand, a wide range of high-quality programming, a best-in-class product experience, and a frequent role at the center of culture”, the company said.
