Netflix Names Ted Sarandos Co-CEO And Adds 10 Million Subscribers
According to The Wall Street Journal, Netflix, “the company at the forefront of remaking entertainment, promoted the architect of its programming strategy to the role of co-chief executive as it reported that the shelter-in-place world garnered it another 10.1 million subscribers in the second quarter.”
“The elevation of Ted Sarandos, 55 years old, to the role of co-CEO puts him in position to eventually succeed Netflix Chairman and Chief Executive Reed Hastings, 59,” wrote The Journal. In a letter to shareholders, Hastings wrote, “This change makes formal what was already informal—that Ted and I share the leadership of Netflix.”’
“Ted drove the revolution in our content strategy, which was way ahead of its time and has been key to our continued success. It was typical of his ability to see where the industry—and consumer tastes—are headed,” Hastings continued.
Jay Hoag, the lead independent director of Netflix, said: “The board and I are confident this is the right step to evolve Netflix’s management structure so that we can continue to best serve our members and shareholders for years to come.”
Netflix has gained “more than 26 million subscribers in the last two quarters, helped by a thirst for entertainment when sports and most content production have been shut down. The 10.1 million net new subscribers it reported Thursday surpassed the 7.5 million Netflix had projected for the second quarter earlier this year,” reported The Journal.
“The appointment of Mr. Sarandos is indicative of the integral role he has played in Netflix’s meteoric growth over the last decade. As chief content officer, he has been the architect of the streaming service’s hugely successful original-programming strategy,” the report continued.
Sarandos has also been elected to the board of directors and will continue to serve as chief content officer. Meanwhile, “Greg Peters, Netflix’s chief product officer, is adding the role of chief operating officer to his responsibilities,” The Journal reported. In his new role, Peters will work closely with Hastings “in expanding Netflix’s international operations and further aligning the company’s overseas and domestic strategies.”
“These changes are part of a long process of succession planning,” Hastings said. “While transitions can be hard, I am optimistic because we have a well established culture that’s built to be flexible and many years to get good at this.”