Netflix chairman to step down as streamer posts strong Q1 results

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Reed Hastings (pictured) will step down as chairman of Netflix, marking the end of an era for the streaming giant he co-founded nearly three decades ago.

In a letter to shareholders, the company said Hastings will not stand for re-election to its board when his term expires at its annual meeting in June, as he looks to focus on philanthropy and other pursuits.

Hastings described his time at Netflix as “life-changing,” pointing to the company’s global expansion in 2016 as a defining moment. He added that his contribution was less about any single decision and more about building a culture centred on member satisfaction and long-term success.

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His departure closes a chapter for Netflix, where he helped pioneer the shift from DVD rentals to streaming, fundamentally reshaping how audiences consume entertainment worldwide.

Co-CEO Ted Sarandos said Hastings had been a “singular source of inspiration,” while co-CEO Greg Peters credited his leadership with shaping the company’s culture and long-term direction.

The leadership update comes as Netflix reported stronger-than-expected financial performance for the first quarter of 2026. Revenue rose 16% year-on-year to exceed forecasts, driven by membership growth, pricing adjustments and increasing advertising income. Operating income climbed 18% to US$4 billion, while operating margin reached 32.3%.

The company maintained its full-year outlook, projecting revenue between US$50.7 billion and US$51.7 billion, alongside a 31.5% operating margin.

Advertising continues to be a key growth lever, with Netflix expecting its ad business to reach approximately US$3 billion in 2026, roughly double the previous year. The company said its ad-supported tier remains popular, accounting for more than 60% of sign-ups in markets where it is available.

Netflix is also doubling down on product and content innovation as competition intensifies. The company said it is expanding its use of generative AI tools following the acquisition of InterPositive, aimed at supporting creators and enhancing the member experience. It is also redesigning its mobile interface, including the rollout of vertical video.

Beyond traditional film and TV, Netflix is broadening its offering with video podcasts, gaming and live programming. Its first regional live event, the World Baseball Classic, drew record viewership in Japan, while other live broadcasts, including a BTS event, attracted millions globally.

The company said it continues to position itself as a “must-have” entertainment service, noting it still accounts for only around 5% of global TV view share, signalling significant room for growth.

Even so, Netflix acknowledged an increasingly competitive landscape, with rivals spanning tech giants, traditional media companies and digital platforms such as Amazon, Apple and TikTok.

As Hastings prepares to step back, the company’s next phase will be shaped by its ability to scale advertising, deepen engagement and stay ahead in a rapidly evolving entertainment ecosystem.

The company’s disciplined approach to growth has also been evident in its dealmaking strategy. In February, Netflix confirmed it would not proceed with an acquisition of Warner Bros., declining to match a higher bid from Paramount Skydance. Sarandos and Peters said the deal was no longer financially attractive at the revised price, despite earlier expectations of shareholder value and a clear regulatory path.

Netflix added at the time that it would continue investing heavily in content, with around US$20 billion earmarked for films and series this year, while resuming its share repurchase programme.

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