The company’s net profit collapsed following a catastrophic start to 2022. Netflix, however, has won more subscribers than expected in the last quarter.
by Arnaud Leparmentier (New York, correspondent)
Reed Hastings co -founded Netflix in 1997, a small DVD rental company by correspondence. A quarter of a century later, and after a trying year 2022, the 62 -year -old entrepreneur left the operational management of the streaming giant who revolutionized Hollywood. He will become chairman of the supervisory board and give way to his teammate Ted Sarandos, who was already CO-PDG, and Greg Peters, who was so far Director of Operations.
“Ted and Greg are now co-PDG. After fifteen years together, we have an excellent team and I have perfect confidence in their leadership. Twice as much heart, twice the ability to please teams and Accelerate growth. Proud to serve as an executive president for many years to come “, he twisted. By becoming president of the supervisory board, Reed Hastings, whose fortune is estimated by Forbes at 3.4 billion dollars, follows a path taken by other billionaire founders, such as Bill Gates at Microsoft and Jeff Bezos at Amazon.
The news was announced by the company on the occasion of the publication of quarterly results, which are both bad and excellent. Bad, because the net profit was divided by eleven this quarter, falling to 55 million, while the operating profit fell from 630 to 550 million. The result by action was affected by the rise of the euro which increased its debt and leads to an accounting loss of 462 million. Reassuring because the number of new subscribers has reached 7.7 million for a total of 230 million subscribers, spraying the previous forecasts of 4.5 million. Result, in informal exchanges after closing the markets, the action made Yoyo, winning between 3 and 9 %, between 330 and 340 dollars.
a cheaper subscription
The rebound of subscribers, conquered mainly outside the United States, occurs after the streaming giant introduced in November 2022 a cheaper subscription plan with advertisements for $ 7 per month, mounted in collaboration with Microsoft, And waged war against password loans that allowed several screens for a single subscription.
“2022 was a difficult year, with a chaotic start but a brighter end,” writes the company. Netflix had caused an earthquake in the media and finance world by announcing in April that it had lost 200,000 subscribers in the first quarter, followed by a reflux of 700,000 in the second. The action had collapsed from $ 349 to $ 226, the company losing a third of its value overnight. This news gave the signal for the correction of major technological values which continued all year 2022, hitting Apple, Microsoft and Tesla. This Thursday, January 19, Netflix told its shareholders that it passed the development phase of its most greedy activity in capital and intends to focus now on the generation of liquidity.
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