International: Netflix, the leading streaming entertainment service provider has announced the elevation of Ted Sarandos to co-CEO. Sarandos will be serving as chief content officer, in addition to the co-CEO post. Meanwhile, Greg Peters has been named COO in addition to his role of chief product officer.
“Ted has been my partner for decades. This change makes formal what was already informal—that Ted and I share the leadership of Netflix,” said Hastings. Lead Independent Director Jay Hoag added,
“Having watched Reed and Ted work together for so long, 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.”
“We want Greg to help us stay aligned and effective as we grow so quickly around the world,” said Hastings. In Q2, Netflix’s revenue grew 25 percent year on year, to $6.15 billion, while quarterly operating income was $1.4 billion. Average streaming paid memberships in the second quarter were up 25 percent, and streaming ARPU increased 0.4 percent year over year. Netflix added a Q2-record of 10.1 million paid memberships, compared to the 2.7 million added in last year’s Q2.
Netflix said in a letter to shareholders. “In Q1 and Q2, we saw significant pull-forward of our underlying adoption leading to huge growth in the first half of this year (26 million paid net adds vs. prior year of 12 million). As a result, we expect less growth for the second half of 2020 compared to the prior year. As we navigate these turbulent circumstances, we’re focused on our members by continuing to improve the quality of our service and bringing new films and shows to people’s screens.”