Reed Hastings, 62, who founded the business in 1997, will be stepping into an Executive Chair role, to be replaced by current co-CEO Ted Sarandos and COO Greg Peters, who were promoted to their roles in 2020.
He said in a statement: “The board and I believe it is the right time to complete my succession.
“It was a baptism of fire, given Covid and recent challenges within our business…but they’ve both managed incredibly well.”
The firm reported a 7.7 million uptick in subscribers in the fourth quarter to 231 million, helping push shares up 6.1% to $335 in pre-market trading. Earnings per share of 12 cents came in well behind the 45 cents analysts had estimated, according to Refinitiv data.
The subscriber increase represents a marked turnaround for the streaming service, which saw some $47 billion wiped off its value in April after it reported quarterly numbers that fell well short of investor hopes.
The streaming giant reported a drop in subscribers for the first time in a decade, causing shares to plunge 30%.
But the business now expects further “modest” gains in subscribers, and forecasts 4% year-on-year growth.
In November, it introduced a cheaper subscription option that includes adverts, and said it would crack down on password sharing.
Netflix said it had been given a boost after the release of its Harry and Megan series, the second most-popular documentary series in its history, as well as by Glass Onion: A Knives Out Mystery starring Daniel Craig.
Hastings controls a 2% stake in Netflix and has a net worth of $3.3 billion (£2.7 billion) according to an estimate by Forbes.