Reed Hastings is leaving his post as co-CEO of Netflix. The announcement was made on Wednesday, January 13th and marks a significant shift in the company’s leadership structure.
Hastings created the streaming giant over two decades ago, and has since become a titan of the entertainment world and one of the most successful entrepreneurs of all time. He has held the role of co-CEO since Netflix became a publicly traded company in 2002, along with other roles such as chairman of the board of directors and president.
Hastings will remain as chairman of the board, but the leadership structure of the company is shifting from a two-CEO system to one. Ted Sarandos, who has been the chief content officer, is being promoted as the sole CEO.
The leadership change is interesting considering Netflix’s recent success. The company reported a record quarter for 2020, with over 200 million subscribers and a net income of $1.2 billion. However, Hastings and Sarandos have been scoping out different levels of leadership to handle the company’s growth.
This is especially important given that Netflix recently announced their decision to expand into production of video games. Netflix has already shown their commitment to gaming with their purchase of interactive rights to The Witcher series and the launch of its first game—“ Bandersnatch” based on the hit show “Black Mirror.”
The move to separate the roles of chairman of the board and CEO makes sense, with Hastings remaining as the public face of Netflix to represent the brand and Sarandos leading the company’s business strategy.
In light of the changes, Sarandos has spoken about how this move will help the company continue to flourish. “We are well-positioned to capitalize on the opportunities ahead and I look forward to leading our 245,000 members of the Netflix team,” he said in a statement.
With Hastings stepping down as co-CEO, it looks to be the first of many changes at Netflix over the coming years. As the streaming landscape continues to evolve, the company is working to ensure they remain at the top of their game.