While investors may pay more attention Netflix Inc. and a disappointing Outlook for the second half On Thursday afternoon, the promotion chief content officer Ted Sarandos in a CO-officer may be main news of the day because of what he’s talking about Netflix, and where it is headed.
explained this move as a confirmation of the fact that for many years, CEO reed Hastings referring to Sarandos, and his partner for two decades. What it actually says, though, that Hollywood is just as important or perhaps more than Silicon valley company that has developed differently than just about any other high-profile technology startup from San Francisco.
Sarandos is seen among investors as Mr. Hollywood is the main face of the company in Los Angeles among film studios, where he oversees the teams make deals with existing studios and the purchase of content, while chief product officer Greg Peters Silicon valley, making sure the company’s streaming technology operation and maintenance of all its new subscribers with the content.
The moves also clear succession planning in the company, as a co-founder of the Hastings approaching retirement age.
“Ted did a phenomenal job with the content and it is clear that, as he approaches 60, Reid wanted to spend more time on other interests, so the transition makes sense,” said an analyst at Wedbush securities Michael Pachter via e-mail.
With this announcement, Netflix is clearly the message that its next leader will be the person in Los Angeles to dine with a show of magnates, and not Executive in Los Gatos, California, making sure servers are running and the algorithms. Sarandos will retain his title of chief content officer and will also serve as Director on Netflix. Peters was appointed chief operating officer in addition to his main role of an officer of goods and is set to be the No. 2 in Hastings, Sarandos after to take leave.
“This change makes formal what has been unofficial — that Ted and I share the leadership of Netflix,” Hastings said Thursday.
Sarandos was with Netflix since 2000, and as one of the main characters in the popular canadian Netflix in the sitcom “Schitt Creek,” he made a name for himself in business first in the video rental market. Before he joined the company Netflix, he was Vice President, product and merchandising in the video-rental services of Video city/West coast video, but quickly turned into a key role in Netflix after he joined. He is also credited for getting the City started in original content.
When asked during an interview with the analyst of the company if his promotion meant that Hastings now will have more time to relax, Sarandos said that it was unlikely.
“We need to start with, the chances that Reid is going to rest a little lower level,” he said, adding that Hastings was an example for him over the last 20 years. “We had some of the most difficult decisions the company has made over the years, solutions from mailing DVDs in the U.S. for streaming around the world,” he said.
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While the two leaders is guided by the streaming giant that it is today, it is clearly the new tasks ahead, how big a lift your company subscription of shelter-in-place seems to be over. One of them can be co-CEO structure that Chaim Elazar Segal, OOO Advisers noted, it can be difficult for companies to navigate.
“Reed Hastings is a genius behind Netflix. The continuity plans, so at some point it’s gone,” he said. “Sarandos has done an incredible job, of course, on the side of the content, but there is no replacement for Reid. Co-leaders are also not an amazing structure for companies.”
Netflix will have to navigate some treacherous waters next year with the two leaders shared the helm. In June, the number of paid additional subscribers were actually down, Siegel said. Adding additional pressure in the first half of next year, new content will be slower, since the production of new shows was thwarted because of the epidemic of the coronavirus.
“Year-to-date figures only expected to build through the year. So, as of the end of the quarter, net of the cancellation of their leadership for growth of a member is not actually conservative. If they were to see a cleaner cancellation in July, August, it will be wrong.”
Netflix says While the world slowly opens from COVID-19 lock, its priority is to resume production safely and in compliance with local health standards. Programming for 2020 remains almost unchanged, but for 2021, the suspension of production will lead to bigger titles launching in the second half.
These titles were largely the result of the work Sarandos in southern California, and he is rewarded with a Prime location in the upper part of one of the biggest names in technology. If he is able to navigate through the rest of the COVID-19 pandemic, along with Hastings, it seems, Netflix will led him Mr. Hollywood for many years.