Netflix Co-Founder Reed Hastings to Step Down from Board of Directors in June 2026

Reed Hastings, co-founder and chairman of Netflix, will not stand for re-election to the company's board of directors when his term expires at the annual meeting in June 2026, the streaming giant disclosed in its first-quarter earnings letter to shareholders on Thursday. Hastings, 65, said he plans to focus on philanthropy and other pursuits. Netflix's stock fell around 8% on the news of his departure. The company said his decision was "not as a result of any disagreement" with the firm, according to a filing with the SEC. Netflix has not named a successor to the chairman role.

From DVD-by-mail to streaming giant: Hastings' legacy Hastings co-founded Netflix in 1997 with Marc Randolph, initially offering flat-rate DVD rentals by mail to customers in the United States. Randolph left the company in 2002 after guiding it through its initial public offering in 2000. Hastings served as chief executive officer from 1999 until January 2023, when he stepped down from the co-CEO role and became executive chairman, with Greg Peters — the former chief operating officer — joining Ted Sarandos as co-CEO. Under Hastings' leadership, Netflix pivoted from disc delivery to digital streaming, retired its disc delivery service in 2023, and grew into one of the most powerful media companies in the world, inspiring a wave of rival streaming services from Amazon, HBO, Disney, Hulu, and others. In May 2025, Hastings was appointed to the board of directors of AI company Anthropic; he had previously served on the boards of Facebook, Microsoft, and Bloomberg.

„Netflix changed my life in so many ways, and my all‑time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service. My real contribution at Netflix wasn't a single decision; it was a focus on member joy, building a culture that others could inherit and improve, and building a company that could be both beloved by members and wildly successful for generations to come.” — Reed Hastings via IndieWire

Netflix was founded in 1997 in northern California as a DVD-by-mail rental platform, years before streaming technology made digital delivery viable. The company launched its streaming service in 2007 and officially retired its disc delivery service in 2023. Hastings led the company through its transformation into a streaming pioneer and its expansion into original content production, a move that reshaped Hollywood's business model and triggered a broader industry shift toward direct-to-consumer streaming platforms.

Strong Q1 results overshadowed by Warner Bros fallout Netflix reported first-quarter 2026 revenue of $12.25 billion, a 16% increase from the same period a year earlier, modestly exceeding analyst forecasts of $12.18 billion. Net income rose nearly 83% to $5.28 billion. 2.8 (billion USD) — termination fee received from Warner Bros Discovery The results included a $2.8 billion termination fee Netflix received after the collapse of its planned acquisition of Warner Bros Discovery, which instead agreed to be acquired by Paramount Skydance, controlled by the Ellison family. Netflix had described the Warner Bros deal as a "nice to have, not need to have" proposition and declined to enter a bidding war. The company did not specify how it intends to deploy the termination fee proceeds. Earnings per share reached $1.23 in the first quarter, compared with 66 cents per share in the same quarter a year earlier.

2025-Q1: 0.66, 2026-Q1: 1.23

„As the company enters a new era without Reed Hastings, advertising will play a bigger role. There's no better time to amplify an ads business than right now with the upfronts looming.” — Ross Benes via Reuters

Co-CEOs pledge to carry Hastings' culture forward Ted Sarandos and Greg Peters, who have served as co-CEOs since January 2023, both issued statements praising Hastings' influence on the company's culture and direction. Netflix said advertising revenue remains on track to reach $3 billion in 2026, representing a twofold increase from a year ago. The company is expanding into video podcasts and live entertainment, citing the World Baseball Classic in Japan as an example of its live sports strategy, and is also pursuing generative AI, including through its recent acquisition of InterPositive, Ben Affleck's AI company. Netflix reaffirmed in its 14-page shareholder letter that its mission remains "ambitious and unchanged" and kept its full-year financial outlook intact. The company faces intensifying competition among streaming platforms, particularly if the Paramount Skydance takeover of Warner Bros proceeds.

„Reed has been a singular source of inspiration for me, personally and professionally, since we met in 1999. I've had the privilege of working for, and alongside, a true history maker and I look forward to marveling at all he will do next.” — Ted Sarandos via IndieWire