Netflix, the US streaming giant, reported on Thursday that it had more than 230 million users worldwide at the end of last year, above analysts’ projections as popular shows like “Wednesday” and “Harry & Meghan” attracted 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.
In addition, Netflix revealed that co-founder Reed Hastings was stepping down from his position as CEO after 25 years in charge, during which time the business grew from a DVD rental service to a behemoth in the entertainment industry.
Ted Sarandos, who has been the face of Netflix in Hollywood and was already appointed co-CEO, and Greg Peters, the company’s chief operating officer, were given leadership of Netflix by Hastings.
“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.”
Early in 2002, Netflix listed on the stock market with an IPO price of $15 per share.
Following the disclosure of the earnings results, shares of the streaming television service increased by about 7% to $337.31 in after-market dealings.
Hastings joked in a blog post that “even founders need to adapt,” pointing out that the Netflix board has been talking about succession planning for many years.
Using the precedents of Microsoft’s Bill Gates and Amazon’s Jeff Bezos, he said that he would hold the newly created position of executive chairman.
The announcement of the change of guard coincided with Netflix reporting increased subscribers that far above even the most optimistic predictions.
The streaming behemoth claimed to have attracted 7.7 million new subscribers in just three months, raising the total number of Netflix subscribers worldwide to 230 million.
The “Addams Family” spinoff “Wednesday” was part of a successful slate of new programming that Netflix recognized as being the third most watched show in the company’s history.
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.
