Description
Netflix Inc. Co-Founder Reed Hastings Steps Down as CEO After Leading the Company for More Than Two Decades; he is replaced by two long-time partners, Ted Sarandos (already co-director) and Greg Peters. They have now provided details about the company's future, including a proposal to end password sharing in many countries. Peters, the new co-CEO, has confirmed that the vast majority of Netflix subscribers who use the service but don't pay for it will be forced to do so in the near future. In an interview with Bloomberg, he went on to say that regulated password sharing would be rolled out gradually, so the streaming video platform wouldn't sacrifice user experience even after it was rolled out. He predicted that the event would not be well received by everyone and that the business would have to deal with angry customers. According to the CEOs, the company hopes to focus on developing countries like India as it grows its subscriber base from 15 million to 20 million.
Netflix launched a new ad-supported tier in November. Advertising level performance was mixed; it was Netflix's least popular plan in its first month. However, the new tier led to an increase in new day one subscriptions and increased its share of Netflix subscriptions in December.
Netflix said it was pleased with its progress, saying the level of advertising had brought in new cost-conscious customers. Most of the people who choose the level of advertising are new customers, not people who downgrade from a more expensive plan, Bloomberg reported.
(Bloomberg feed input)
