One well-known on-demand membership streaming service is Netflix shareholders(NFLX -0.43%).
Although the business was founded in 2007, it was first established in 1997 as a DVD-by-mail rent service. According to a comment from co-founder Reed Hastings, the impetus for starting the mail-based rental company came from being penalised for delivering a video late by Blockbuster, the industry’s top movie rental company at the time.
With a share of the national market of 22% as of mid-2024, the business is among the most popular streaming service providers in the world and the United States. It matches closely by Amazon (AMZN 1.47%) Premier services.
Despite the fact that the COVID-19 pandemic caused millions of people to stay at home for weeks at a time, Netflix experienced an abrupt decrease in revenue as a result of inflationary trends and shifting consumer spending patterns.
However, Netflix appears to be regaining speed gradually. Early in 2024, Netflix had over 270 million paying subscribers around the world, up 16% from the same time the previous year. In the first quarters of 2024, the business’s total sales reached $9.4 billion, a 15% increase over the same period the previous year. Profits shot up to $2.3 billion, an over 80% increase.
In 2023, Netflix shareholders reported $33.7 billion in sales and $5.4 billion in net income, up 7% and 20% from 2022, respectively. By the end of 2022, it debuted a more affordable, ad-supported tier, while by the beginning of 2024, it had 40 million users worldwide.
Given that Netflix is a publicly traded enterprise, anyone can invest in the streaming behemoth and profit from its expansion. What you want to know about Netflix’s ownership structure, board of executives, and investing options is provided here.
Who is the owner of Netflix?
On the twenty-third of May 2002, Netflix successfully completed the offering to the public (IPO), charging $15 per shareholders. Netflix stock is owned by thousands of investors, both private and institutional.
Most Netflix shareholders are owned by institutional investors. 85.24% of Netflix shareholders were owned by large investors as of mid-2024.
Who owns the majority of the shareholders?
A few respected organisations possess the majority of Netflix’s shareholders. Individual investors do, however, still own a significant amount of the company. These are the greatest five individuals and companies that own Netflix shareholders.
Individuals: With 5,426,708 shares, Reed Hastings, the CEO, owns 1.25% of the company. After 25 years as CEO, he assumed the role of chief executive officer of Netflix in 2023. In addition, he helped establish Pure Software in 1991, which produced tools for software developers, and Netflix in 1997.
Ted Sarandos, the chairman, owns 673,889 shares, or less than 1% of the total shares. Beginning July 2020, Sarandos has shared the role of co-CEO of Netflix. Along with leading content management since 2000, he was also the driving force driving the company’s foray into generating original content over ten years ago.
Jay C. Hoag: With 555,345 shares, he owns less than 1% of the total number of shares in circulation. Since 1999, Hoag has been a director at Netflix. Since 1995, he has served as a founding founding partner of the venture capital company Technology Crossover Ventures. Hoag is a shareholders of Peloton Dynamic, Inc. (PTON 4.35%), the company, Inc. (TRIP 1.65%), & Zillow Group, Inc. (Z 1.69%).
Greg Peters: With 364,912 shares, he holds a smaller percentage of the outstanding shares—less than 1%. Since January 2023, Peters and Sarandos have shared the role of co-CEO of Netflix. Prior to entering Netflix, he held the positions director international development policeman, chief operating officer, as well as chief product officer. Prior to joining Netflix in 2008, he held a number of roles at Mediabolic Inc., Red Hat Network, which is located and Wine.com in addition to serving as the executive vice president of electronic products for Macrovision Systems Corp. (later changed to Rovi Corporation, then TiVo Company).
David Hyman: Hyman has served as the chief legal officer of Netflix since 2002. Prior to joining Netflix, he was senior corporation counsel and chief legal counsel of online retailer Webvan. Hyman owns 244,781 shareholders, and less than 1% of all outstanding shares.
Investors with institutions: Vanguard Group: With around $7.7 trillion in worldwide assets under leadership, Vanguard Group is a leading global investment advisor. It is the second-biggest supplier of exchange-traded funds (ETFs), and the biggest provider of mutual funds. The corporation has an 8.5% investment in Netflix, with 36.6 million shares.
BLK (BLK 2.35%): With $10 trillion in funds under management, the investment company was established in 1988 and is currently one of the biggest asset managers in the world. The corporation holds 31.38 million Netflix shares, or 7.3% of all outstanding shares, as equity.
Fidelity Investments owns Fidelity Managing & Research Company LLC (FMR, LLC). About $5 trillion worth of assets are controlled by Fidelity. The private company holds a 4.9% stake, and 21.01 million shares, in Netflix.
STT (State Street Corporation): The business is a massive global holding corporation for banking and financial services. It is managing assets worth $4.1 trillion. Owning nearly 16.5 million Netflix shares gives the business an equity holding of about 3.8% of all outstanding shares.
Price Group T. Rowe (TROW -2.95%): The international investment firm has its headquarters in Baltimore, Maryland, and was established in 1937. It has about 11.71 million Netflix shares, or a 2.7% ownership position, and oversees over $1.5 trillion in assets.
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