News: Netflix Content Chief Ted Sarandos appointed as co-CEO


Netflix Content Chief Ted Sarandos appointed as co-CEO

The promotion came as Netflix forecasts its subscriber growth during the pandemic to slow even more than what Wall Street expected during the third quarter, sending its shares tumbling 9.5 percent in after-hours trading.
Netflix Content Chief Ted Sarandos appointed as co-CEO

Netflix has named its Content Chief Ted Sarandos as co-CEO, making the 20-year veteran of one of the pioneering streaming video services a clear successor to co-founder Reed Hastings. However, Hastings has no plan to leave the company for at least a decade. 

Hastings and Sarandos would each work full time as co-CEOs and lead Netflix through these tough times towards a better future. 

Netflix added 10.1 million streaming subscribers from April through June, its highest second-quarter gains ever, as the novel pandemic and the subsequent lockdown had more people at home with more time to watch the content on Netflix. Those restrictions led to "huge growth in the first half of the year," Netflix said in a letter to shareholders, but "as a result we expect less growth for the second half of 2020 compared to the prior year."

With the new members, the world's dominant streaming service reached nearly 193 million paying online customers.

Netflix is trying to increase its customer base and outrun the competition as viewers embrace online viewing amid the pandemic.

The pandemic has sparked new interest in the online viewing service as people around the world were told to stay home, movie theaters went dark and sports leagues canceled live games. In fact many movies which might have released in theaters otherwise are now being released on OTT platforms like Netflix, Amazon Prime Video, and Hotstar, among others. 

To accelerate its growth and make most of the current opportunities, it is rigorously investing in improvising its product and enriching its content. The appointment of Sarandos confirms the commitment and importance Netflix gives to its content. Furthermore Netflix has also given Chief Product Officer Greg Peters the additional role of Chief Operating Officer. Only time will tell how these leadership changes will help Netflix in making a stronger place in the market. 

Image Credits: WSJ

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Topics: Appointments, C-Suite

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