Why did Reed Hastings step down?

Netflix Inc. co-founder Reed Hastings stepped down as the chief executive and handed the reins to longtime partner and co-CEO Ted Sarandos and chief operating officer Greg Peters on Thursday, January 19, 2023.

In a statement, Reed Hastings shared his reasons for stepping down. “It was a baptism by fire, given COVID and recent challenges within our business.” “But they’ve both managed incredibly well … so the board and I believe it’s the right time to complete my succession.”

Reed Hastings founded Netflix (NFLX) in 1997 and transformed the way millions of people watched movies and television shows, first with its DVD-by-mail service and later with its streaming video service.

Under Reed Hastings’ leadership, Netflix disrupted legacy movie rental companies such as Blockbuster and helped shake up Hollywood by launching an arms race in original content investment.

It also survived a notable blunder in 2011, when the company planned to separate its streaming service from its DVD business, with the latter rebranded as Qwikster.