Netflix now has 230.75 million paying subscribers, far exceeding its forecasts and market expectations for the latest quarter and turning the page on a very difficult year for the streaming service, according to an earnings release issued on Thursday.
The platform also announced that founder Reed Hastings was handing over his position as co-CEO to Greg Peters, alongside Ted Sarandos.
Hastings, who started off with a DVD rental service by mail, said he was proud of the company’s first 25 years and excited for the next 25. He will remain with Netflix as executive chairman.
Netflix went through a slump last year. It lost nearly 1.2 million subscribers in the first half of the year, started to attract millions again in the third quarter, and then gained 7.66 million new ones between October and December, far more than expected.
Net profit still below expectations
The platform benefitted from new seasons of hit series such as ‘The Crown,’ about the British royal family, and ‘Emily in Paris,’ but also from new programmes, including the documentary series ‘Harry & Meghan’ and the phenomenon series ‘Wednesday.’
However, Netflix remains under heavy pressure to correct course and deliver better results for its shareholders, after its stock lost more than 50% of its value in 2022, notes Paul Verna, an analyst at Insider intelligence.
In the fourth quarter, the California-based company made $7.85 billion in revenue, but generated only $55 million in net profit, well below the $257 million expected by the market.
Netflix took steps last year to generate new revenue streams, including the launch of a new, cheaper subscription with advertising in November.
