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Netflix Stock Drops, Promotes Ted Sarandos to Co-CEO

Sam Arnold

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Netflix promoted longtime content chief Ted Sarandos to co-CEO, as company stock dropped 10% after forecasts of low subscription numbers.

Despite COVID-19 forcing everyone home, Netflix’s stock tumbled more than 10% Thursday. This number comes after projections that the company could draw in just 2.5 million subscribers in the next quarter. However, in the second quarter of 2020, Netflix had reeled in 10 million subscribers. 

Netflix Promotes Ted Sarandos

Aside from this news, Netflix said they were promoting Ted Sarandos to co-CEO, together with Reed Hastings. Sarandos is Netflix’s chief of content. In a statement, Hastings welcomed the news. “Ted has been my partner for decades,” he said. He added that the two of them were already leading the company together informally. This promotion just formalizes the partnership.

Sarandos will still be the content chief. In a blog post, Sarandos said he promises to keep doing what has made Netflix successful. He plans to “keep pushing the boundaries” for “people who love stories.”

Netflix’s Strong Second Quarter

Netflix had a strong second quarter. The company reported profits of $720 million, a long jump from $271 million in the prior quarter. Altogether, Netflix made a profit of $6.1 billion, a 24% increase. However, the company expects growth to slow down due to COVID-19. Consumers still have to get used to COVID-19 restrictions before subscribing

Netflix’s Competitors in the Streaming Market

In addition to COVID-19, Netflix also faces stiff competition. WarnerMedia recently launched HBO Max, another streaming app. Other competitors include Disney+, Apple TV+, Amazon Prime, and Hulu. 

Netflix plans to resume production of its original content safely. They said they would stick to their original plans for 2020. Worrying about competitors is also far from their minds. “We continue to stick to our strategy,” Netflix said Thursday. To stay ahead, they would “improve their service and content” quicker than their rivals. 

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Arnold is a senior British tech reporter at Tekrati. Before joining Tekrati, Arnold worked as an editor for his University Newspaper, writing sharable content for a student audience. Sam loves movies, running, and anything written by Oliver Sacks. The drink he chose is tea, which he does not recommend in large quantities.

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