Before he co-founded Netflix, Reed Hastings ran a debugging-tool company, Pure Software. And he’s convinced the morass of red tape he put in place at Pure led to the company’s eventual irrelevance …
ran a debugging-tool company, Pure Software. And he’s convinced the morass of red tape he put in place at Pure led to the company’s eventual irrelevance and sale to a rival.
It doesn’t make Netflix out to be perfect. There’s still plenty of issues. But it’s very real in that way. Our big media competitors are not going to be able to take advantage of [the lessons in the book] because they’re too well established… It’s not like some great trade secret and then they’re all going to adapt to it. It’s the younger firms that will.How we’re super American.
You say you’re running a company with no rules. But you do have rules, right? One principle you’ve never wavered on is to not introduce advertising. Isn’t that a rule made to be broken? In the book, you discuss the famous Netflix Keeper Test. What was the most difficult decision you’ve had to make in letting an employee go?
On the Netflix Q2 call, you said you’re “in for a decade.” Does that mean you’ve set a date — you’re leaving in 2030? If someone mostly cares about job security — maybe they’re supporting relatives, there are a lot of reasonable reasons — we try to be clear: We’re not a good place to come. We don’t want people to feel debilitating fear; obviously that’s not productive. But again, it’s kind of like athletics. We’re looking for a special kind of person who can ignore that fear and play light and know if they do one to 10 years at Netflix, it’s going to help their career. They don’t have to be at Netflix forever.
Netflix benefited in the first half of the year from unprecedented net adds because of the coronavirus. Do you think this is a permanent step-change? Where does Netflix go from here? There’s a section of the book about what’s to come. What are the big areas of opportunity and challenges?
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