Netflix co-founder and current chairman Reed Hastings will officially step down from the company's board of directors when his term expires this summer. Netflix stated in its latest first-quarter financial report and letter to shareholders that Hastings will shift his focus to philanthropy and other personal affairs.
According to the company's first-quarter results document released on Thursday, Hastings will officially step down when his term as director ends in June this year. Hastings issued a statement in the report, saying, "Netflix has changed my life in many ways. My most memorable moment was in January 2016, when we made our service available to almost everyone around the world."
Hastings said that his real contribution to Netflix is not a specific decision, but always focusing on the "pleasurable experience of members", creating a corporate culture that can be inherited and continuously improved by successors, and building a company that can win the love of users while also maintaining strong commercial success for generations to come. In the statement, he expressed his gratitude to Netflix CEO Ted Sarandos and co-CEO Greg Peters.
As early as 1999, in a video rental industry still dominated by mom-and-pop stores and large chains, Hastings and Netflix co-founder Marc Randolph founded Netflix, which pays by subscription and provides video rental services by mailing DVDs. In the following years, as Netflix expanded its business from optical disc mailing to digital content transmission, the company not only squeezed and eliminated a large number of traditional mom-and-pop stores to a large extent, but also accelerated the decline of large chain rental giant Blockbuster. Netflix officially shut down its disc mailing service in 2023. Under Hastings' leadership, the company became a pioneer in the streaming media industry and inspired a number of subsequent streaming services such as Amazon, HBO, Disney, and Hulu.
Netflix commented in the financial report, "Reed has created a culture centered on innovation, integrity and high performance, which is why we have become the company we are today." The company pointed out that his vision and leadership have reshaped the way the global entertainment industry is presented, and his legacy and influence are not only deeply imprinted within Netflix, but also reflected in the viewing experience of global audiences.
As Hastings prepares to leave, Netflix is also moving toward a new technological frontier. The company stated in the report that it is seeking to expand its presence in areas including generative artificial intelligence, and mentioned its recent acquisition of InterPositive, an artificial intelligence film and television company founded by Ben Affleck. Netflix believes that these investments will drive further innovation in content production and service forms.
In terms of financial performance, Netflix achieved revenue of US$12.25 billion in the first quarter of this year, a year-on-year increase of 16.2%. During the same period, net profit jumped nearly 83% to US$5.28 billion, providing the company with a more sufficient financial foundation for content investment and technology exploration.