Status: 01/20/2023 10:17 a.m
Is this the turning point for Netflix after a period of customer dwindling? The streaming provider was recently able to attract more users again. Meanwhile, company co-founder Hastings is retiring from his chief post.
The streaming provider was able to close 2022, which was disappointing overall for Netflix, with a successful final spurt. In the fourth quarter to the end of December, the US company gained a total of 7.66 million new customers. That’s significantly more than analysts had estimated. They had expected an average of 4.5 million users.
The streaming service lost users in the first half of the past financial year. Only in the second half did Netflix grow again. Overall, Netflix had 230.75 million user accounts by the end of the year. In addition to “Harry & Meghan”, the video service was also able to score with the series “Wednesday” and the films “Troll” and “Glass Onion”. “Wednesday” is the third highest-grossing show in Netflix history.
Optimistic forecasts
“2022 was a difficult year with a bumpy start, but a brighter finish,” said the annual report, looking at the weak first half of the year. Netflix experienced a veritable rush of customers at the beginning of the corona pandemic, but then fell into a crisis with intermittent customer dwindling. The competition from financially strong competitors such as Disney or Amazon increased. Because of the high inflation, money was no longer so easy with customers.
In the meantime, however, Netflix is doing better again: In the fourth quarter, sales rose by around two percent compared to the same period last year to $7.9 billion. Although net income fell from $607 million to $55 million, Netflix forecast an increase to $1.3 billion for the current quarter. The company expects sales to grow to $8.2 billion.
Company founder Reed Hastings resigns
Company co-founder Reed Hastings obviously thinks the time is right to say goodbye to his operational duties as CEO: After more than two decades, the 62-year-old is retiring from top management. “I’m so proud of our first 25 years and excited about our next quarter century,” said Hastings. The 62-year-old added: “Even founders have to develop further.”
Hastings has been a dual board member at Netflix since 2020 with long-time top manager Ted Sarandos. Hastings is now taking a back seat, but as executive chairman of the board he is likely to retain a great deal of influence.
The stock goes up
Netflix promoted Greg Peters, who was previously responsible for day-to-day business on the board, to succeed him as co-boss alongside Sarandos. He has worked with Peters and Sarandos for 15 years and has “increasingly delegated management of Netflix to them over the past two and a half years,” Hastings said. From now on, he will support the two Netflix bosses and will work to ensure that the Netflix share price is good, while at the same time dedicating himself more to charitable causes.
Netflix shares responded after hours with a plus of over seven percent. In the past three months, the price has already increased by almost 18 percent. A year ago, however, it was still 38 percent higher.