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Netflix Chairman Reed Hastings is stepping down from the streaming company he co-founded nearly 29 years ago, as the business regains its footing after losing a major deal with Warner Bros Discovery. In a letter to investors released Thursday, Netflix said Hastings will not seek re-election at its annual meeting in June and plans to focus on philanthropy and other pursuits.
Netflix shares fell about 8% following the announcement.
Hastings is widely credited with helping revolutionize how movies and television shows are delivered to viewers at home, reshaping Hollywood’s traditional business model. Analysts said the timing of the leadership change comes as Netflix leans further into advertising.
“As the company enters a new era without Reed Hastings, advertising will play a bigger role,” said eMarketer senior analyst Ross Benes. “There’s no better time to amplify an ads business than right now with the upfronts looming.”
In a 14-page shareholder letter, Netflix reaffirmed that its mission remains “ambitious and unchanged” — to entertain the world by providing movies and series for many tastes, cultures, and languages. The company also said its full-year outlook remained unchanged.
Netflix did not specify how it plans to spend the $2.8 billion termination fee it received after losing the Warner Bros movie studio and HBO deal.
For the first quarter, Netflix lifted earnings per share to $1.23, compared with 66 cents per share in the same quarter last year. Revenue rose to $12.25 billion, up 16% year over year, modestly exceeding analyst forecasts of $12.18 billion.
Netflix highlighted areas it sees as supporting future growth, including expanding its entertainment offerings through video podcasts and live entertainment. The company cited live programming such as the World Baseball Classic in Japan as a driver of engagement.
Netflix also said it plans to use technology to improve the user experience and strengthen monetization. The company reiterated that advertising revenue remains on track to reach $3 billion in 2026, a twofold increase from a year ago.

Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…