{"id":2988,"date":"2020-09-21T05:59:42","date_gmt":"2020-09-21T04:59:42","guid":{"rendered":"http:\/\/towncryyers.com\/?p=2988"},"modified":"2020-09-21T05:59:48","modified_gmt":"2020-09-21T04:59:48","slug":"2988","status":"publish","type":"post","link":"https:\/\/towncryyers.com\/index.php\/2020\/09\/21\/2988\/","title":{"rendered":""},"content":{"rendered":"\n

Netflix CEO Reed Hastings On Culture, Competition And What Keeps Him Up At Night<\/strong><\/p>\n\n\n\n

By Kai Ryssdal and Maria Hollenhorst<\/p>\n\n\n\n

In 1997, Reed Hastings and Marc Randolph co-founded an online movie rental company called Netflix. Today, it\u2019s a globally influential entertainment company with close to 200 million subscribers around the world. \u201cMarketplace\u201d host Kai Ryssdal spoke with Hastings about competition in the new era of streaming, Netflix\u2019s company culture and the book he co-wrote called \u201cNo Rules Rules: Netflix and the Culture of Reinvention.\u201d The following is an edited transcript of their conversation. Click here to read an excerpt from the book.<\/p>\n\n\n\n

Kai Ryssdal: I read somewhere as I was preparing for this talk that you have said you knew back in like 1996-97, in the days of red envelopes and DVDs going out, you knew that this is where this company was going to wind up \u2014 delivering nonlinear television or content over the internet. Is that true?<\/em><\/p>\n\n\n\n

Reed Hastings: How lucky can one person get? In 1986, I got a job serving coffee as a first job in a computer company. And it happened to be the very first dot com ever. And in that company, I learned so much about the internet, that by the time we started Netflix in 1997, I realized the internet was going to continue to get faster and faster and eventually be able to do television. And so yes, we knew and DVD was a temporary option for us, and it worked very well.<\/strong><\/p>\n\n\n\n

Ryssdal: Yeah, clearly it did, I would say so. Much has been written and said about how much money this company spends on getting those new shows and new content, and I wonder, of the things that keep you up at night running this globally influential company, where does the amount of money you have to shell out for content rank?<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Hastings: You know, [we\u2019ll be] spending this year about $15 billion developing new content, so it is quite a lot, and we\u2019re very thankful that then our subscribers watch all of our content and then, you know, send us 10 bucks a month to be able to fund even more content development.<\/strong><\/p>\n\n\n\n

Ryssdal: But the beautiful part it seems to me, of Netflix and honestly your competitors as well, but let\u2019s talk about you, is that it yes, it\u2019s great to have the hits, right, like \u201cThe Crown\u201d and all the rest of them, but it almost doesn\u2019t matter because you have unlimited airtime. You can keep it in the back catalog, and people keep coming back for it, and that seems like a great luxury and competitive advantage.<\/em><\/p>\n\n\n\n

Hastings: You know, the internet has that infinite shelf space aspect that makes it able to support really broad selection, and so that\u2019s what empowers us to have a huge variety of shows, depending on whatever country you live in.<\/strong><\/p>\n\n\n\n

Ryssdal: Can we talk for a second about this book that you\u2019ve written? And I want to dig into it in the way I think you intended it to be read, which is a discussion of yes, Netflix, but also how you run this company and the company culture. It is famously described as \u2014 \u201ccutthroat\u201d is probably pejorative, but it\u2019s harsh and does not tolerate second-rate performers. And you\u2019ve been really candid about it, right? I mean, you released the whole PowerPoint deck on it eight or 10 years ago, you\u2019re writing a book about it now. Do you worry that Netflix, for all of its successes, suffers from its reputation as a really difficult place to work?<\/em><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Hastings: If you look at the employee satisfaction studies, we rank at the very top. People who work at Netflix love it. It may not be for everyone, but for 300 years, people have built companies to be like factories \u2014 very top down, very efficiency oriented. And now there\u2019s a lot of creative work, where instead of supervising employees, which is the factory way, we look to get them to create new concepts. We manage on the edge of chaos, but the benefit of that is great creativity, which is what\u2019s helped us adapt from the DVD era forward.<\/strong><\/p>\n\n\n\n

Ryssdal: Who gets to decide in this company? I mean, you famously took on Ted Sarandos, who used to be chief content guy, and he\u2019s now the co-CEO with you. Who makes the decisions in this company<\/em>?<\/p>\n\n\n\n

Hastings: So a perfect quarter for me would be a quarter where I\u2019ve made no decisions. I\u2019ve only influenced people, I\u2019ve advocated, I\u2019ve inspired, I\u2019ve learned. We don\u2019t do by command, that\u2019s sort of the factory era, we do by influence.<\/strong><\/p>\n\n\n\n

Ryssdal: I\u2019m so interested in this factory-era comparison, because yes, we\u2019re transitioning to a knowledge economy and things are changing and creators now are so important, but it can\u2019t work everywhere in this economy, right?<\/em><\/p>\n\n\n\n

\"\"
Reed Hastings, Co-CEO of Netflix, photographed at their Los Gatos California headquarters in August 2020.<\/figcaption><\/figure>\n\n\n\n

Hastings: Correct. Any part of the economy that\u2019s around mass replication with very little variance, like creating antibiotics, things that are safety critical, like airlines and hospitals, you want to be very process-oriented. Then there\u2019s what used to be a very small sector of the economy \u2014 the creative sector \u2014  but now growing, where it\u2019s fundamentally about ideas, and generating stimulating human creativity.<\/strong><\/p>\n\n\n\n

Ryssdal: Last thing and then I\u2019ll let you go, and it gets us back to the beginning of this conversation where you, as first mover in the space, took out Blockbuster, right? Who are you worried about? Who\u2019s your competition? Are you worried about getting Netflixed, I guess?<\/em><\/p>\n\n\n\n

Hastings: YouTube, TikTok, augmented reality. I think we\u2019ll do pretty well against Disney and HBO. We\u2019re all going to be in it for a long time. The threats that get you are often the substitution threats, the things that you really didn\u2019t spend a lot of time on, and so those are the ones that we worry about in the long term.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Netflix CEO Reed Hastings On Culture, Competition And What Keeps Him Up At Night By Kai Ryssdal and Maria Hollenhorst In 1997, Reed Hastings and Marc Randolph co-founded an online movie rental company called Netflix….<\/p>\n","protected":false},"author":1,"featured_media":2989,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[332,835,836],"class_list":["post-2988","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-movies","tag-netflix","tag-reed-hastings"],"jetpack_publicize_connections":[],"yoast_head":"\n- Towncryyers<\/title>\n<meta name=\"robots\" content=\"index, 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