Netflix Posts 3.3% Subscriber Growth as Reed Hastings Steps Down as Co-CEO

Hastings will become executive chairman.

Andrew Ross Sorkin speaks with Netflix founder and Co-CEO Reed Hastings during the New York Times DealBook Summit in the Appel Room at the Jazz At Lincoln Center on November 30, 2022 in New York City. The New York Times held its first in-person DealBook Summit since the start of the coronavirus (COVID-19) pandemic with speakers from the worlds of financial services, technology, consumer goods, private investment, venture capital, banking, media, public relations, policy, government, and academia.
Reed Hastings becomes executive chairman. Getty Images

Netflix (NFLX) gained 7.66 million subscribers in the last three months, which included the launch of Netflix’s ad-supported tier, beating analysts expectations of 4.5 million new subscribers, the company reported today (Jan. 19). Its stock rose 9 percent in after hours trading.

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The company now has 231 million subscribers globally, a 3.3 percent increase from September.

Reed Hastings also announced he will step down as co-CEO and will become executive chairman. Greg Peters, who previously served as the chief operating officer, will become co-CEO alongside Ted Sarandos.

The company didn’t say how many of its new subscribers were due to its new ad tier. But it said the revenue gained from the ad-supported tier will be “modest” throughout 2023, which is in line with analysts’ expectations. Netflix isn’t looking for huge revenue growth right now, but for customer retention and stability, analytics firm executive Guy Bisson told the Observer last week.

Netflix’s fastest growth continues to come from international markets. It reported 42 percent of new subscribers came from Europe, the Middle East and Africa. Its U.S., Canada, Australia and New Zealand region had the least amount of new subscribers, with 12 percent.

Netflix exceeded analysts expectations with $7.85 billion in revenue over the last three months. It generated $32 billion in the 2022 year, up from $29.7 billion in 2021.

Netflix Posts 3.3% Subscriber Growth as Reed Hastings Steps Down as Co-CEO