Return of the Stream: Netflix Earnings Call Surprises With Exec Shakeups, Subscriber Numbers

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to and find him on Twitter @Samsonamore.

Netflix logo on a TV with red LED backlight behind TV
Photo by Thibault Penin on Unsplash

Netflix’s earnings report contained a few surprises this fourth quarter, including the news that its founder and leader for 25 years Reed Hastings would step down.

The company also managed to subvert analysts’ expectations by adding a hefty chunk of subscribers in its fourth quarter – causing the stock to tick up over 7% in after-hours trading. Netflix called 2022 a “tough year, with a bumpy start but a brighter finish,” and claimed that it had a “clear path to reaccelerate our revenue growth” as well as “building even greater profitability over time.”

Part of that profitability will come as the streaming service opens itself up to more users with more flexible pricing plans. Earlier this year Netflix announced it would offer a new subscription model that was cheaper, but supplemented by ads. The company launched that offering in November. People were skeptical at first about this new tier (after all, for most of its existence Netflix prided itself on not having ads), but it seems to be paying off, since Netflix gained a sizable chunk of subscribers this month – thanks to big hits like the Addams Family reboot “Wednesday,” “Stranger Things 4,” and Rian Johnson’s film “Glass Onion.”

The third quarter balance sheet was strong. Netflix posted revenue of $7.9 million for the fourth quarter, up 2% from this time last year. Annually, Netflix posted revenue of $32 billion, with about $4.5 billion left over in net income after expenses, compared to about $5 billion last year.

That said, Netflix holders have seen a slight dip in performance in the last year, with cumulative returns down 51%. Still, within the last five years the stock’s return is up 54%, and according to Bloomberg’s Dec. 31 figures, Netflix’s stock has generated a return of 2,129% in the last decade.

Here are a few big takeaways from today’s earnings, and what we have our eye on for Netflix’s upcoming fiscal year.

Hastings says goodbye

Reed Hastings, who co-founded Netflix in 1997, announced today he’d step down from his role as co-CEO. Netflix has operated with this co-CEO model for a while now; previously Hastings held the job alongside co-CEO Ted Sarandos. But now Hastings will cede his position to Greg Peters, the company’s former chief operating officer.

Hastings will still remain involved with the company as chairman of the board. He noted in a blog post Thursday that the reshuffle is basically a formalization of what’s already been happening inside the company’s C-suite, and said that he’s “increasingly delegated the management of Netflix” to Peters and Sarandos over the last two and a half years anyway.

Subscribers are up, surprisingly

The streaming service added roughly 7.7 million subscribers in the fourth quarter of 2022. This exceeded the company’s expectations, Netflix previously said it assumed it’d add only about 4.5 million new subscribers this quarter. To date, Netflix has 231 million paid subscribers globally, and its previous target was 227.6 million.

All eyes were on Netflix’s new ad-supported tier, which debuted for $6.99/month in November as part of a venture with Microsoft. While Netflix didn’t specify exactly how many of these new subscribers were paying for that specific plan, it’s pretty clear, based on the number of new subscribers, that the venture is paying off. Especially as streaming services across the board are getting more expensive.

Peters said during an earnings interview Thursday that engagement with the ad-supported plans is roughly on par with its more expensive counterpart. Netflix’s chief financial officer Spencer Neumann said he estimates about half of competitor Hulu’s subscriber base is on a similar ad tier, and said he expects Netflix’s ad business to be just as large as Hulu’s “within several years.”

Netflix also said customer and advertiser engagement with the ad-supported plan is better than expected, though it did say it aims to improve how it targets and measures those customers.

Overall, Netflix said the reaction from subscribers to the cheaper plan confirmed that it is not only a worthy offering but also has a shot at generating the same revenue, if not more, than its ad-free tier. Keep an eye on how Netflix reports growth this year, and if it will indeed offer more options for ad-based plans.

Unusually, Netflix declined to share specifics about its other developing business: gaming. In just over a year, the company pushed out 50 games, and said it plans to offer more games based on hit Netflix shows in the coming year.

Password sharing is still a bother

Finally, Netflix knows you’re still using your grandma’s password to watch “Wednesday,” and it’s getting fed up.

We’ve discussed the streamer’s ambitions to crack down on password sharing, and that came up during today’s earnings report. Netflix said it estimates 100 million households, if not more, share accounts, which it claims “undermines” its ability to make the service better.

To combat this, Netflix announced it will soon roll out paid sharing, a plan that would allow users to give permission to family and friends to join their plan even if they’re not part of the same household. It’s unclear how much this plan might cost, but Netflix said it will soon let users review which devices are using the app and transfer profiles to different accounts. It’ll also soon give users the option to pay extra to share the service with people they don’t live with – though that’s definitely happening already, and it’s unclear exactly how the company will prevent people from mooching.

Netflix also noted this move might tick off some account borrowers who might stop watching because they don’t want to pay for an account, and warned “near-term engagement” could suffer. But it claimed that its “great slate of programming” will continue to reel in more people than it loses. We shall see about that.
Top LA Accelerators that Entrepreneurs Should Know About

Los Angeles, has a thriving startup ecosystem with numerous accelerators, incubators, and programs designed to support and nurture new businesses. These programs provide a range of services, including funding, mentorship, workspace, networking opportunities, and strategic guidance to help entrepreneurs develop their ideas and scale their companies.

Techstars Los Angeles

Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of LA.

Location: Culver City

Type of Funding: Pre-seed, early stage

Focus: Industry Agnostic

Notable Past Companies: StokedPlastic, Zeno Power


Grid110 offers no-cost, no-equity programs for entrepreneurs in Los Angeles, including a 12-week Residency accelerator for early-stage startups, an Idea to Launch Bootcamp for pre-launch entrepreneurs, and specialized programs like the PledgeLA Founders Fund and Friends & Family program, all aimed at providing essential skills, resources, and support to help founders develop and grow their businesses.

Location: DTLA

Type of Funding: Seed, early stage

Focus: Industry Agnostic

Notable Past Companies: Casetify, Flavors From Afar


Idealab is a renowned startup studio and incubator based in Pasadena, California. Founded in 1996 by entrepreneur Bill Gross, Idealab has a long history of nurturing innovative technology companies, with over 150 startups launched and 45 successful IPOs and acquisitions, including notable successes like Coinbase and Tenor.

Location: Pasadena

Type of Funding: Stage agnostic

Focus: Industry Agnostic, AI/Robotics, Consumer, Clean Energy

Notable Past Companies: Lumin, Coinbase, Tenor

Plug In South LA

Plug In South LA is a tech accelerator program focused on supporting and empowering Black and Latinx entrepreneurs in the Los Angeles area. The 12-week intensive program provides early-stage founders with mentorship, workshops, strategic guidance, potential pilot partnerships, grant funding, and networking opportunities to help them scale their businesses and secure investment.

Location: Los Angeles

Type of Funding: Pre-seed, seed

Focus: Industry Agnostic, Connection to South LA and related communities

Notable Past Companies: ChargerHelp, Peadbo

Cedars-Sinai Accelerator

The Cedars-Sinai Accelerator is a three-month program based in Los Angeles that provides healthcare startups with $100,000 in funding, mentorship from over 300 leading clinicians and executives, and access to Cedars-Sinai's clinical expertise and resources. The program aims to transform healthcare quality, efficiency, and care delivery by helping entrepreneurs bring their innovative technology products to market, offering participants dedicated office space, exposure to a broad network of healthcare entrepreneurs and investors, and the opportunity to pitch their companies at a Demo Day.

Location: West Hollywood

Type of Funding: Seed, early stage, convertible note

Focus: Healthcare, Device, Life Sciences

Notable Past Companies: Regard, Hawthorne Effect

MedTech Innovator

MedTech Innovator is the world's largest accelerator for medical technology companies, based in Los Angeles, offering a four-month program that provides selected startups with unparalleled access to industry leaders, investors, and resources without taking equity. The accelerator culminates in showcase events and competitions where participating companies can win substantial non-dilutive funding, with the program having a strong track record of helping startups secure FDA approvals and significant follow-on funding.

Location: Westwood

Type of Funding: Seed, early stage

Focus: Health Care, Health Diagnostics, Medical Device

Notable Past Companies: Zeto, Genetesis


The KidsX Accelerator in Los Angeles is a 10-week program that supports early-stage digital health companies focused on pediatric care, providing mentorship, resources, and access to a network of children's hospitals to help startups validate product-market fit and scale their solutions. The accelerator uses a reverse pitch model, where participating hospitals identify focus areas and work closely with selected startups to develop and pilot digital health solutions that address specific pediatric needs.

Location: East Hollywood

Type of Funding: Pre-seed, seed, early stage

Focus: Pediatric Health Care Innovation

Notable Past Companies: Smileyscope, Zocalo Health

Disney Accelerator

Disney Accelerator is a startup accelerator that provides early-stage companies in the consumer media, entertainment and technology sectors with mentorship, guidance, and investment from Disney executives. The program, now in its 10th year, aims to foster collaborations and partnerships between innovative technology companies and The Walt Disney Company to help them accelerate their growth and bring new experiences to Disney audiences.

Location: Burbank

Type of Funding: Growth stage

Focus: Technology and entertainment

Notable Past Companies: Epic Games, BRIT + CO, CAMP

Techstars Space Accelerator

Techstars Space Accelerator is a startup accelerator program focused on advancing the next generation of space technology companies. The three-month mentorship-driven program brings together founders from across the globe to work on big ideas in aerospace, including rapid launch services, precision-based imaging, operating systems for complex robotics, in-space servicing, and thermal protection.

Location: Los Angeles

Type of Funding: Growth stage

Focus: Aerospace

Notable Past Companies: Pixxel, Morpheus Space

Download the dot.LA App

🚁 One Step Closer to Air Taxis in LA
Image Source: Joby Aviation

🔦 Spotlight

Joby Aviation, a pioneering electric air taxi company, has achieved a significant milestone by successfully flying a hydrogen-electric aircraft demonstrator for 523 miles with only water as a byproduct. This groundbreaking flight showcases the potential for emissions-free regional travel using vertical take-off and landing (eVTOL) aircraft, eliminating the need for traditional runways. The company's innovative approach combines its existing battery-electric air taxi technology with hydrogen fuel cells, paving the way for longer-range, environmentally friendly air travel.

For LA residents, this development holds exciting implications for future transportation options. Joby's technology could potentially enable direct flights from LA to destinations like San Francisco or San Diego without the need to visit conventional airports, offering a cleaner and more convenient alternative to current travel methods. The company's progress in both battery-electric and hydrogen-electric aircraft positions it at the forefront of next-generation aviation, promising to revolutionize urban and regional mobility.

Notably, Joby Aviation has already made strides in Southern California by securing an agreement with John Wayne Airport earlier this year to install the region's first electric air taxi charger. This strategic move sets the stage for LA to be among the initial markets where Joby will launch its electric air taxi service. With plans to commence commercial operations as early as 2025 using its battery-electric air taxi, LA residents may soon have access to a fast, quiet, and environmentally friendly mode of transportation that could significantly reduce travel times and traffic congestion in the region. In the not too distant future, LA might find itself in an identity crisis without traffic and excess smog 🤞🤞.

🤝 Venture Deals

LA Companies

LA Venture Funds

Download the dot.LA App

Fuel Innovation: 7 Unforgettable Team Building Experiences in LA
Image Source: Discover LA

In today's competitive business landscape, team building activities have emerged as a crucial tool for fostering a positive work environment, enhancing productivity, and crucially, improving employee retention. Studies have shown that such activities help employees feel valued, with one report indicating that 93% of those who felt appreciated were more motivated at work. Importantly, team building events may improve retention rates, as employees who feel connected to their colleagues and company culture are more likely to stay long-term. With these benefits in mind, let's explore some of the most engaging and effective team building activities available in Los Angeles.


Image Source: Modern Luxury Angelino

Pickleball is a fantastic team bonding activity because of the easy-to-grasp rules and gentle pace make it perfect for everyone, regardless of age or fitness level. The game thrives on communication and teamwork, as players must collaborate and strategize to outplay their opponents, boosting team cohesion. Plus, the lively, fast-paced action sparks friendly competition and laughter, creating a fun and spirited atmosphere that brings everyone closer together. Los Angeles boasts numerous pickleball courts that are easy to rent if you have your own equipment. If you need additional assistance organizing your pickleball outing, there are plenty of full-service companies ready to handle every detail for you.

Resources: Pickle Pop, Corporate Pickle

Escape Room

Image Source: The Escape Game

Escape rooms are a great way to build camaraderie. They require participants to work together, combining their problem-solving skills and creativity to overcome challenges and puzzles. The immersive and time-sensitive nature of escape rooms fosters collaboration and communication. Additionally, the shared experience of tackling complex tasks and reaching a common goal helps build trust and foster positive emotions among colleagues.

Resources: The Escape Game, 60Out

Day Trip to Catalina Island

Image Source: Love Catalina

Catalina Island is a perfect day trip for a team because it provides a break from the usual work environment, allowing team members to relax and connect in a new setting. Shared experiences during the trip, such as exploring new places and participating in fun activities, help build stronger relationships and foster a sense of camaraderie. There are numerous team-building activities such as an arboreal obstacle course, an island tour, scavenger hunts and more.

Resources: Catalina Island Group Activities

Top Golf

Image Source: Topgolf

Topgolf is an excellent team building event because it provides an inclusive, relaxed atmosphere that accommodates players of all skill levels, fostering personal connections and improving team morale. The unique blend of competition and entertainment creates an ideal setting for building trust, enhancing communication, and revealing hidden skills among team members. Additionally, Topgolf offers structured team building packages with guided activities, discussion prompts, and lessons on culture, change, collaboration, and strategy, making it a versatile and effective platform for strengthening relationships and boosting overall team performance.

Resources: Topgolf El Segundo

SoFi Stadium Tour

Image Source: Discover LA

A SoFi Stadium tour offers a unique, behind-the-scenes experience of one of the world's most advanced sports venues, allowing team members to explore exclusive areas like premium suites, team locker rooms, and the player tunnel together. The tour provides a shared, memorable experience that can foster camaraderie and spark conversations among team members, regardless of their interest in sports. Additionally, the stadium's state-of-the-art features and impressive architecture can inspire creativity and innovation, while the group setting encourages interaction and collaboration, making it an engaging and enjoyable activity for teams of various sizes and backgrounds

Resources: SoFi Stadium Group Tours

Corporate Volunteering

Image Source: L.A. Works

Volunteer work serves as an excellent team building activity by uniting employees around a shared, meaningful cause, fostering a sense of purpose and collective accomplishment. It provides opportunities for team members to collaborate in new ways, often revealing hidden strengths and leadership qualities that may not be apparent in the regular work environment. Additionally, engaging in community service can boost morale, enhance the company's reputation, and instill a sense of pride among employees, leading to improved workplace relationships and increased job satisfaction.

Resources: Habitat for Humanity, L.A. Works, VolunteerMatch

Corporate Improv Sessions

Image Source: Improv for the People

A corporate improv class encourages spontaneity, creativity, and quick thinking, skills that are valuable in the workplace. It promotes active listening and collaboration, as participants must work together to create scenes and respond to unexpected situations, fostering better communication and trust among team members. Additionally, the playful and often humorous nature of improv helps break down barriers, reduces stress, and creates a shared positive experience that can improve team morale and cohesion long after the event.

Resources: Improv-LA, Groundlings, Improv for the People