Netflix co-founder Reed Hastings to depart

Netflix chairman Reed Hastings is to leave the company almost three decades after he co-founded the global streamer.

Hastings launched Netflix with Marc Randolph in 1997 and has been integral to its evolution from DVD mail service to the world’s biggest streamer.

His exit was confirmed in Netflix’s Q1 results revealed on Thursday, with his exit in June coming three years after the exec segued from co-chief exec to become chairman.

“Netflix changed my life in so many ways and my all‑time favourite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” he said.

“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,” Hastings added.

Ted Sarandos described Hastings as a “singular source of inspiration for me, personally and professionally, since we met in 1999,” while fellow co-chief exec Greg Peters said Hastings’ “vision, entrepreneurship and steadfast commitment to our values have shaped every stage of our journey and continue to shape how Ted and I lead Netflix today.”

Hastings is estimated to hold a stake of around 1% in Netflix valued at $2bn. His exit was not altogether unexpected, with the streamer confirming a move to become a non-exec director in 2025. He has been focusing on a property development in Utah and philanthropic work over recent years.

Revenues up, shares down

Hastings’ exit was confirmed as Netflix unveiled a 16% uptick in revenues in the first three months of the year to $12.25bn (£9.05bn), with higher prices and advertising - the latter set to hit $3bn (£2.22bn) in 2026 - driving growth.

Earnings were also up to 76cents per share but while the numbers beat Wall Street expectations, shares dived almost 8% in after-hours trading as investors digested news of Hastings’ departure. Operating margins in Q2 are also expected to dip 1.5%, said Netflix, while its total revenue projection for 2026 remains at between $50.7bn and $51.7bn.

Shows such as Bridgerton S4 and One Piece S2 were among content highlighted, while live viewing such as the World Baseball Classic was again underlined as a key subscriber driver (although numbers are no longer revealed).

Netflix said it is focused on “broadening” its offering to include “an even wider range of entertainment options, including video podcasts and games,” while “leveraging AI to improve the member experience”. A move into vertical video is coming at the end of the month.

The results were also the first to emerge since the streamer’s failed attempt to buy Warner Bros Discovery, which is being acquired by Paramount for $110bn (£81.29bn).

Netflix’s letter to investors said WBD would have been “a nice accelerant for our strategy, but only at the right price.”

During an investor call following the results, Saranbdos said the WBD pursuit had “built our M&A muscle” and added that the company had learned “so much about deal execution and about early integration.”

“We were proud to win the bid and we were confident in our ability to get to the finish line with regulators for the approvals that we needed.

“But mostly, we really built our M&A muscle. And the most important benefit of this entire exercise was that we tested our investment discipline. When the cost of this deal grew beyond the net value to our business and to our shareholders, we were willing to put emotion and ego aside, and walk away.”

Sarandos added that the “biggest risk” of pursuing WBD was “losing focus on our core business”, which he said the Q1 results proved had not occurred.

Netflix is also open to M&A - the streamer acquired Ben Affleck’s AI firm InterPositive in March - and Sarandos said the WBD pursuit had “set up our teams to understand that that’s the expected of them day-to-day.”

The Q1 results also revealed Sarandos had taken home $53.9m in total compensation in 2025, with Peters figure standing at $53.2m, both down around $8m on a year earlier.