Reed Hastings, who transformed Netflix from a scrappy DVD subscription service into a globe-spanning Hollywood colossus, will step down in June from the board of the company he co-founded, the company said on Thursday.
Mr. Hastings, the board chair, said in a letter to shareholders that his decision would allow him to “focus on new things” when he steps down this summer.
“My real contribution at Netflix wasn’t a single decision; it was a focus on member joy, building a culture that others could inherit and improve, and building a company that could be both beloved by members and wildly successful for generations to come,” Mr. Hastings said.
Mr. Hastings, 65, seized upon the power of the internet to reinvent Hollywood over nearly three decades at Netflix. A software engineer turned entrepreneur, Mr. Hastings applied the language of technology — think algorithms and servers — to redefine an industry primed for profound change.
Along the way, Mr. Hastings articulated a new kind of corporate culture that married Silicon Valley and Hollywood. In a now famous slide show from 2009, Netflix under Mr. Hastings invoked a new metaphor for co-workers (“we’re a team, not a family”) and championed dispassionate cullings of middling employees (“adequate performance gets a generous severance package.”) The company later revised the presentation.
In 2023, after a quarter-century leading Netflix, Mr. Hastings stepped down as co-chief executive, a title he then shared with Ted Sarandos. In his place, Netflix promoted Greg Peters, the company’s chief product and chief operating officer. At the time, Mr. Hastings described the move as part of a long-in-the-making succession plan, comparing the transition to those orchestrated by well-known executives like Warren Buffett and Bill Gates.
Mr. Hastings’s remarks in the shareholder letter were brief. He thanked Mr. Sarandos and Mr. Peters, saying their commitment to Netflix was strong enough to allow him to step aside. He added that his favorite moment at the company was in January 2016, when “we enabled nearly the entire planet to enjoy our service.” That month the company launched in 130 new countries at the same time.
In the letter, Mr. Sarandos called Mr. Hastings “a true history maker,” adding that he was looking forward to “marveling at all he will do next.”
Mr. Hastings’s next act is already underway. In 2023, Mr. Hastings bought a stake in Powder Mountain, a ski resort in Utah where he owned a home. Since then, he has sought to transform the resort into a public-private getaway for the public and the ultrawealthy alike.
Benjamin Mullin reports for The Times on the major companies behind news and entertainment. Contact him securely on Signal at +1 530-961-3223 or at [email protected].
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