Netflix beats forecast, adds 10.1M subscribers

Mike Snider
USA TODAYPublished 4:46 PM EDT Jul 16, 2020Netflix has a new double-bill: chief content officer Ted Sarandos will join Reed Hastings as a co-CEO.Sarandos joined the Los Gatos, California-headquartered company more than 20 years ago – back when DVDs sent by mail was its main business – and has been its visible face at awards shows. He will maintain his job as chief content officer along with co-CEO duties.“Ted has been my partner for decades. This change makes formal what was already informal – that Ted and I share the leadership of Netflix,” said CEO Reed Hastings in the company’s shareholder letter, released Thursday.They also continued to grow its viewership over the past few months, adding 10.1 million subscribers in the April-June period, the company said Thursday. That drives its global membership to 193 million.Netflix had expected to add about 7.5 million subscribers, but demand was higher due to the coronavirus pandemic with left many to turn “to entertainment for relaxation, connection, comfort and stimulation,” Hastings said.But the company expects to add just 2.5 million in the current quarter (July-September), compared to about 6.8 million in the same period a year ago. “Growth is slowing as consumers get through the initial shock of COVID and social restrictions,” he said.Netflix shares fell 10% in after-hours trading. The stock is up 60% so far this year and has hit new share price highs this month.Hastings also announced that Greg Peters has been named as chief operation officer in addition to his current role as chief product officer.Follow Mike Snider on Twitter: @MikeSnider.


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