Netflix Inc co-founder Reed Hastings made his exit as CEO

Digital Desk: Netflix Inc co-founder Reed Hastings announced his resignation as CEO on Thursday, turning over the streaming service to longtime partner and co-CEO Ted Sarandos and the company's chief operating officer, Greg Peters. 

Shares of the streaming video pioneer climbed 6.1% to $335.05 in after-hours trade, after falling roughly 38% in the previous year.

After losing customers in the first half of 2022, Netflix has been under pressure. 

Hastings will serve as executive chairman, while Sarandos and Peters will split the position of CEO. The transition takes effect immediately and is the result of a decade of succession planning by the board. Both Peters and Sarandos were elevated in July 2020, during a difficult period for the organisation. 

"Given Covid and recent issues inside our firm, it was a baptism by fire," Hastings said in a statement. "But they've both managed extremely well... so the board and I believe the moment has come to battle for my succession."

Hastings decided to resign as Netflix reported 7.66 million new subscribers in the fourth quarter, exceeding Wall Street expectations of 4.57 million, thanks to "Harry & Meghan" and "Wednesday" in the race to attract streaming television viewers. 

Netflix anticipates "moderate" subscription growth through March. It anticipates a 4% year-over-year increase in revenue during the term, thanks to additional revenue streams. 

The startup is competing against Walt Disney Co., Amazon.com Inc., and others that are spending billions of dollars to create TV shows and movies for internet viewers. 

In the first half of 2022, Netflix lost customers. It resumed growing in the second half, but new client additions remained lower than in previous years.

Netflix launched a cheaper, ad-supported version in 12 countries last November to jumpstart growth. It has also stated that it intends to crack down on password sharing. 

"2022 was a difficult year, with a rocky start but a brilliant finish. We believe we are on the right track to re-accelerate our revenue growth "Netflix stated in its quarterly shareholder letter. 

At the end of December, the company's global user base had reached 231 million.