you’ve got no hope if you try to pretend to be Reed Hastings or Mark Zuckerberg
to be Reed Hastings or Mark Zuckerberg
to be Reed Hastings or Mark Zuckerberg or Bill Gates I short I mean you know
or Bill Gates I short I mean you know
or Bill Gates I short I mean you know why a way we’re doing this we’re like we
why a way we’re doing this we’re like we
why a way we’re doing this we’re like we won’t have a difference we think of
won’t have a difference we think of
won’t have a difference we think of ourselves like Alchemist we take in
ourselves like Alchemist we take in
ourselves like Alchemist we take in money and out comes joy I would say I’ve
money and out comes joy I would say I’ve
money and out comes joy I would say I’ve always believed that a strong mission
always believed that a strong mission
always believed that a strong mission statements really important and I have
statements really important and I have
statements really important and I have to say we’ve never succeeded at it he’s
to say we’ve never succeeded at it he’s
to say we’ve never succeeded at it he’s an American entrepreneur and
an American entrepreneur and
an American entrepreneur and philanthropist he’s the co-founder and
philanthropist he’s the co-founder and
philanthropist he’s the co-founder and CEO of Netflix and he serves on the
CEO of Netflix and he serves on the
CEO of Netflix and he serves on the board of directors of Facebook and a
board of directors of Facebook and a
board of directors of Facebook and a number of other nonprofit organizations
number of other nonprofit organizations
number of other nonprofit organizations he has an estimated net worth of over a
he has an estimated net worth of over a
he has an estimated net worth of over a billion dollars
billion dollars
billion dollars he’s Reed Hastings and here’s my take on
he’s Reed Hastings and here’s my take on
he’s Reed Hastings and here’s my take on his top 10 rules to success rule number
his top 10 rules to success rule number
his top 10 rules to success rule number one is my personal favorite and make
one is my personal favorite and make
one is my personal favorite and make sure to stick around all the way to the
sure to stick around all the way to the
sure to stick around all the way to the end for some special bonus clips and as
end for some special bonus clips and as
end for some special bonus clips and as always if Reed says something that
always if Reed says something that
always if Reed says something that really resonates with you please leave
really resonates with you please leave
really resonates with you please leave in the comments below and put quotes
in the comments below and put quotes
in the comments below and put quotes around it to other people can be
around it to other people can be
around it to other people can be inspired as well enjoy
you have to be authentic I mean you’ve
you have to be authentic I mean you’ve got no hope if you try to pretend to be
got no hope if you try to pretend to be
got no hope if you try to pretend to be Reed Hastings or Mark Zuckerberg or Bill
Reed Hastings or Mark Zuckerberg or Bill
Reed Hastings or Mark Zuckerberg or Bill Gates or whoever you want to think your
Gates or whoever you want to think your
Gates or whoever you want to think your CEOs are that you’ve met you know that
CEOs are that you’ve met you know that
CEOs are that you’ve met you know that is crazy and you got to really get
is crazy and you got to really get
is crazy and you got to really get comfortable with yourself your strengths
comfortable with yourself your strengths
comfortable with yourself your strengths and weaknesses
and weaknesses
and weaknesses people are inspired by authenticity and
people are inspired by authenticity and
people are inspired by authenticity and I’m just surprised how many people feel
I’m just surprised how many people feel
I’m just surprised how many people feel like they’re acting and or try to act
like they’re acting and or try to act
like they’re acting and or try to act and you may be a really quiet person and
and you may be a really quiet person and
and you may be a really quiet person and that’s fine but if you have that fierce
that’s fine but if you have that fierce
that’s fine but if you have that fierce will that desire for the institution the
will that desire for the institution the
will that desire for the institution the company to be great in your own role and
company to be great in your own role and
company to be great in your own role and that is secondary and you authentically
that is secondary and you authentically
that is secondary and you authentically express that whatever ways you do then
express that whatever ways you do then
express that whatever ways you do then you’ll be greatly accepted okay
you’ll be greatly accepted okay
you’ll be greatly accepted okay and so that’s all it takes is to be
and so that’s all it takes is to be
and so that’s all it takes is to be authentic and not try to be something
authentic and not try to be something
authentic and not try to be something else and to fundamentally care at your
else and to fundamentally care at your
else and to fundamentally care at your core about what’s good for the company
core about what’s good for the company
core about what’s good for the company and if everybody knows and you act in
and if everybody knows and you act in
and if everybody knows and you act in the notion of what’s good as best as
the notion of what’s good as best as
the notion of what’s good as best as your judgement can tell what’s good for
your judgement can tell what’s good for
your judgement can tell what’s good for the company they will see that and
the company they will see that and
the company they will see that and people will follow you and they won’t be
people will follow you and they won’t be
people will follow you and they won’t be cynical it’s when you hide things it’s
cynical it’s when you hide things it’s
cynical it’s when you hide things it’s when you pretend if we don’t if we’re
when you pretend if we don’t if we’re
when you pretend if we don’t if we’re not creative enough if we don’t push it
not creative enough if we don’t push it
not creative enough if we don’t push it hard enough you know we’ve got to have
hard enough you know we’ve got to have
hard enough you know we’ve got to have some failures and so we don’t really
some failures and so we don’t really
some failures and so we don’t really want to have all hits I’m gladly glad
want to have all hits I’m gladly glad
want to have all hits I’m gladly glad the first ones are hits but you know the
the first ones are hits but you know the
the first ones are hits but you know the sign that you’re right at the the edge
sign that you’re right at the the edge
sign that you’re right at the the edge of chaos the edge of creativity is that
of chaos the edge of creativity is that
of chaos the edge of creativity is that some stuff doesn’t work and why do you
some stuff doesn’t work and why do you
some stuff doesn’t work and why do you want to be there because networks don’t
want to be there because networks don’t
want to be there because networks don’t want to be there life short I mean you
want to be there life short I mean you
want to be there life short I mean you know why a way we’re doing this we’re
know why a way we’re doing this we’re
know why a way we’re doing this we’re like we want to have a difference right
like we want to have a difference right
like we want to have a difference right now and so it’s a it’s an eight that’s
now and so it’s a it’s an eight that’s
now and so it’s a it’s an eight that’s wanting to to push the edge to create
wanting to to push the edge to create
wanting to to push the edge to create something that we the people are proud
something that we the people are proud
something that we the people are proud of and that they enjoy we collect this
of and that they enjoy we collect this
of and that they enjoy we collect this year about eight billion dollars of
year about eight billion dollars of
year about eight billion dollars of customers money so thank you all of you
customers money so thank you all of you
customers money so thank you all of you for giving us your money and what we do
for giving us your money and what we do
for giving us your money and what we do is we say that money is entrust to
is we say that money is entrust to
is we say that money is entrust to create joy we have to turn that into the
create joy we have to turn that into the
create joy we have to turn that into the most joy possible and so we look and we
most joy possible and so we look and we
most joy possible and so we look and we say for every show if a show cost a
say for every show if a show cost a
say for every show if a show cost a hundred million dollars how much joy how
hundred million dollars how much joy how
hundred million dollars how much joy how much viewing did it create amongst all
much viewing did it create amongst all
much viewing did it create amongst all of you
of you
of you if it costs 50 million or 200 million of
if it costs 50 million or 200 million of
if it costs 50 million or 200 million of course you want different amounts of joy
course you want different amounts of joy
course you want different amounts of joy so we look at it as how much joy can we
so we look at it as how much joy can we
so we look at it as how much joy can we create of your money and if we turn it
create of your money and if we turn it
create of your money and if we turn it into joy effectively then you’re happy
into joy effectively then you’re happy
into joy effectively then you’re happy and you tell your friends and we grow
and you tell your friends and we grow
and you tell your friends and we grow and then we have more money next year to
and then we have more money next year to
and then we have more money next year to turn into more joy so we think of
turn into more joy so we think of
turn into more joy so we think of ourselves like Alchemist we take in
ourselves like Alchemist we take in
ourselves like Alchemist we take in money and out comes joy I would say I’ve
money and out comes joy I would say I’ve
money and out comes joy I would say I’ve always believed that a strong mission
always believed that a strong mission
always believed that a strong mission statements really important and I have
statements really important and I have
statements really important and I have to say we’ve never succeeded at it it’s
to say we’ve never succeeded at it it’s
to say we’ve never succeeded at it it’s like this odd thing you know we’ve had
like this odd thing you know we’ve had
like this odd thing you know we’ve had them every year for 15 years they’re
them every year for 15 years they’re
them every year for 15 years they’re constantly different and now we’re all
constantly different and now we’re all
constantly different and now we’re all so cynical we’re like well we’re trying
so cynical we’re like well we’re trying
so cynical we’re like well we’re trying to make people happy I mean that’s the
to make people happy I mean that’s the
to make people happy I mean that’s the fundamental thing is in consumer service
fundamental thing is in consumer service
fundamental thing is in consumer service you know we’re trying to be better and
you know we’re trying to be better and
you know we’re trying to be better and us in Disney and mission aren’t that
us in Disney and mission aren’t that
us in Disney and mission aren’t that different there’s a bunch of different
different there’s a bunch of different
different there’s a bunch of different tactics at it but we’re an emotional
tactics at it but we’re an emotional
tactics at it but we’re an emotional product we cater to the things that are
product we cater to the things that are
product we cater to the things that are important but not necessary and I love
important but not necessary and I love
important but not necessary and I love that part about it because like when
that part about it because like when
that part about it because like when you’re selling milk or penicillin you’re
you’re selling milk or penicillin you’re
you’re selling milk or penicillin you’re selling something somebody needs and we
selling something somebody needs and we
selling something somebody needs and we get to sell something you want okay that
get to sell something you want okay that
get to sell something you want okay that you choose to do because it’s really
you choose to do because it’s really
you choose to do because it’s really cool a human you know to be entertained
cool a human you know to be entertained
cool a human you know to be entertained and connect to people over entertainment
and connect to people over entertainment
and connect to people over entertainment and so we celebrate that a lot and we
and so we celebrate that a lot and we
and so we celebrate that a lot and we want to change the industry but in terms
want to change the industry but in terms
want to change the industry but in terms of like a mission statement like so many
of like a mission statement like so many
of like a mission statement like so many companies have you know Facebook to
companies have you know Facebook to
companies have you know Facebook to talks about a more connected and open
talks about a more connected and open
talks about a more connected and open world and that you see that phrase again
world and that you see that phrase again
world and that you see that phrase again and again and again and it’s a powerful
and again and again and it’s a powerful
and again and again and it’s a powerful mantra we don’t have an equivalent and I
mantra we don’t have an equivalent and I
mantra we don’t have an equivalent and I think we probably would have been
think we probably would have been
think we probably would have been stronger if we do we’re in the early
stronger if we do we’re in the early
stronger if we do we’re in the early days it was to connect people with
days it was to connect people with
days it was to connect people with movies they love and it’s okay but it’s
movies they love and it’s okay but it’s
movies they love and it’s okay but it’s kind of like a long kind of awkward
kind of like a long kind of awkward
kind of like a long kind of awkward phrase connect people with movies the
phrase connect people with movies the
phrase connect people with movies the love and you know it’s just not punchy
love and you know it’s just not punchy
love and you know it’s just not punchy and and then so like we used it we had
and and then so like we used it we had
and and then so like we used it we had t-shirts you know and then I didn’t
t-shirts you know and then I didn’t
t-shirts you know and then I didn’t really motivate anyone didn’t really
really motivate anyone didn’t really
really motivate anyone didn’t really stick but we knew we were trying to make
stick but we knew we were trying to make
stick but we knew we were trying to make people happy with DVDs and then
people happy with DVDs and then
people happy with DVDs and then eventually was dreaming and original
eventually was dreaming and original
eventually was dreaming and original content so it didn’t hold us back much
content so it didn’t hold us back much
content so it didn’t hold us back much what I find interesting about you the
what I find interesting about you the
what I find interesting about you the way you conduct your business is that
way you conduct your business is that
way you conduct your business is that when when stuff doesn’t work out you
when when stuff doesn’t work out you
when when stuff doesn’t work out you apologize you go and say we made it I
apologize you go and say we made it I
apologize you go and say we made it I made a mistake and all that what is that
made a mistake and all that what is that
made a mistake and all that what is that the first time you had to go out there
the first time you had to go out there
the first time you had to go out there and say sorry
and say sorry
and say sorry this was
this was
this was and it was I remember with the increase
and it was I remember with the increase
and it was I remember with the increase the rate increase right then you’re like
the rate increase right then you’re like
the rate increase right then you’re like not forget about it like what was I
not forget about it like what was I
not forget about it like what was I expiry for you as a boss when you’re
expiry for you as a boss when you’re
expiry for you as a boss when you’re like I have to go and own this going
like I have to go and own this going
like I have to go and own this going through marriage counseling 20 years ago
was really how I moved to become a
was really how I moved to become a better manager and leader really and
better manager and leader really and
better manager and leader really and yeah you know this marriage counselor
yeah you know this marriage counselor
yeah you know this marriage counselor was able to get me to see that I was
was able to get me to see that I was
was able to get me to see that I was often lying to myself and to my wife you
often lying to myself and to my wife you
often lying to myself and to my wife you know saying oh family is the most
know saying oh family is the most
know saying oh family is the most important thing and I’d stay at work all
important thing and I’d stay at work all
important thing and I’d stay at work all night and that the value of honesty is
night and that the value of honesty is
night and that the value of honesty is that people can take honesty even if
that people can take honesty even if
that people can take honesty even if it’s not necessarily what they want to
it’s not necessarily what they want to
it’s not necessarily what they want to hear if it’s really sincere and then the
hear if it’s really sincere and then the
hear if it’s really sincere and then the question is read what do you do to not
question is read what do you do to not
question is read what do you do to not lose a culture if you believe you got a
lose a culture if you believe you got a
lose a culture if you believe you got a great one early on yeah I mean one of
great one early on yeah I mean one of
great one early on yeah I mean one of the most common questions new employee
the most common questions new employee
the most common questions new employee has is how do we preserve the culture
has is how do we preserve the culture
has is how do we preserve the culture and I say well to preserve something to
and I say well to preserve something to
and I say well to preserve something to pickle it is the wrong solution we’re
pickle it is the wrong solution we’re
pickle it is the wrong solution we’re not trying to preserve the culture we’re
not trying to preserve the culture we’re
not trying to preserve the culture we’re trying to make it better and it’s
trying to make it better and it’s
trying to make it better and it’s materially better than it was five years
materially better than it was five years
materially better than it was five years ago and I’ll cite a couple of specific
ago and I’ll cite a couple of specific
ago and I’ll cite a couple of specific examples and then say you know what your
examples and then say you know what your
examples and then say you know what your job in addition to doing your role is to
job in addition to doing your role is to
job in addition to doing your role is to figure out how do we get even better
figure out how do we get even better
figure out how do we get even better because it’s only when you struggle to
because it’s only when you struggle to
because it’s only when you struggle to get better that you know you you really
get better that you know you you really
get better that you know you you really keep it vital it alive so you always
keep it vital it alive so you always
keep it vital it alive so you always have to be saying yeah it’s pretty good
have to be saying yeah it’s pretty good
have to be saying yeah it’s pretty good culture but I’m sure it can be better
culture but I’m sure it can be better
culture but I’m sure it can be better how can we be better and so it’s that
how can we be better and so it’s that
how can we be better and so it’s that struggle to improve that keeps it fresh
struggle to improve that keeps it fresh
struggle to improve that keeps it fresh you know we’re pretty good at movies and
you know we’re pretty good at movies and
you know we’re pretty good at movies and TV shows and so the competition that we
TV shows and so the competition that we
TV shows and so the competition that we worry about is the substitution you know
worry about is the substitution you know
worry about is the substitution you know again when people are spending time on
again when people are spending time on
again when people are spending time on snapchat or Facebook video or YouTube
snapchat or Facebook video or YouTube
snapchat or Facebook video or YouTube it’s not Netflix or some new app that
it’s not Netflix or some new app that
it’s not Netflix or some new app that isn’t yet invented and so in the long
isn’t yet invented and so in the long
isn’t yet invented and so in the long term you have to believe that movies and
term you have to believe that movies and
term you have to believe that movies and TV shows will be sort of like the Opera
TV shows will be sort of like the Opera
TV shows will be sort of like the Opera and the novel pretty mushy businesses
and the novel pretty mushy businesses
and the novel pretty mushy businesses and human entertainment will have moved
and human entertainment will have moved
and human entertainment will have moved on to something new so yeah we’re
on to something new so yeah we’re
on to something new so yeah we’re getting really good at movies and TV
getting really good at movies and TV
getting really good at movies and TV shows we get we are in the beginning of
shows we get we are in the beginning of
shows we get we are in the beginning of a great run on that but in the long term
a great run on that but in the long term
a great run on that but in the long term they’ll be substitutes or substitutes
they’ll be substitutes or substitutes
they’ll be substitutes or substitutes for everything to come up and then the
for everything to come up and then the
for everything to come up and then the ultimate challenge for us is can we
ultimate challenge for us is can we
ultimate challenge for us is can we figure out that what that new form of
figure out that what that new form of
figure out that what that new form of entertainment is is that VR is it gaming
entertainment is is that VR is it gaming
entertainment is is that VR is it gaming is it AR
is it AR
is it AR oh three and oh four were growing really
oh three and oh four were growing really
oh three and oh four were growing really fast oh five blockbuster attacks and so
fast oh five blockbuster attacks and so
fast oh five blockbuster attacks and so we thought we were very clever we came
we thought we were very clever we came
we thought we were very clever we came up with a number of ways to
up with a number of ways to
up with a number of ways to counter-attack and remember that
counter-attack and remember that
counter-attack and remember that everybody’s got every DVD so you have
everybody’s got every DVD so you have
everybody’s got every DVD so you have basically the same cock bust or nuts had
basically the same cock bust or nuts had
basically the same cock bust or nuts had the same content offering because it’s
the same content offering because it’s
the same content offering because it’s non-exclusive licensing to get DVDs so
non-exclusive licensing to get DVDs so
non-exclusive licensing to get DVDs so we could differentiate on our service
we could differentiate on our service
we could differentiate on our service fulfillment levels where 99% and theirs
fulfillment levels where 99% and theirs
fulfillment levels where 99% and theirs were 89 but that’s like a really
were 89 but that’s like a really
were 89 but that’s like a really abstract for a customer you know
abstract for a customer you know
abstract for a customer you know thinking of signing up doesn’t mean
thinking of signing up doesn’t mean
thinking of signing up doesn’t mean anything right and then they discounted
anything right and then they discounted
anything right and then they discounted massively so I was like half our price
massively so I was like half our price
massively so I was like half our price and so we were losing share so I you
and so we were losing share so I you
and so we were losing share so I you know we were struggling what to do about
know we were struggling what to do about
know we were struggling what to do about it so we did three or four big efforts
it so we did three or four big efforts
it so we did three or four big efforts one is in the end of oh five we added
one is in the end of oh five we added
one is in the end of oh five we added Netflix friends which was our own social
Netflix friends which was our own social
Netflix friends which was our own social network and remember no five
network and remember no five
network and remember no five you know Facebook’s just on a few
you know Facebook’s just on a few
you know Facebook’s just on a few universities okay so our own social
universities okay so our own social
universities okay so our own social network amongst our members and if you
network amongst our members and if you
network amongst our members and if you enabled each other you could see what
enabled each other you could see what
enabled each other you could see what each other were renting and rating and
each other were renting and rating and
each other were renting and rating and we thought wow the viral effects of this
we thought wow the viral effects of this
we thought wow the viral effects of this would be really powerful etc we added ad
would be really powerful etc we added ad
would be really powerful etc we added ad sales back in the day was like a yahoo
sales back in the day was like a yahoo
sales back in the day was like a yahoo type banners and you could have we could
type banners and you could have we could
type banners and you could have we could have we sold banners you know above the
have we sold banners you know above the
have we sold banners you know above the the choosing interface we added use DVD
the choosing interface we added use DVD
the choosing interface we added use DVD sales on our site to consumers so you
sales on our site to consumers so you
sales on our site to consumers so you know of course we had some excess DVDs
know of course we had some excess DVDs
know of course we had some excess DVDs from four years ago so we added an
from four years ago so we added an
from four years ago so we added an operation to sell them for four bucks a
operation to sell them for four bucks a
operation to sell them for four bucks a pop and you know two different logistics
pop and you know two different logistics
pop and you know two different logistics but we added all that and we added a red
but we added all that and we added a red
but we added all that and we added a red envelope entertainment which was a group
envelope entertainment which was a group
envelope entertainment which was a group that we brought in to buy DVDs buy films
that we brought in to buy DVDs buy films
that we brought in to buy DVDs buy films out of Sundance and similar festivals to
out of Sundance and similar festivals to
out of Sundance and similar festivals to them publish them on DVD so getting into
them publish them on DVD so getting into
them publish them on DVD so getting into content so we did these four efforts and
content so we did these four efforts and
content so we did these four efforts and each one you know was a dozen people 15
each one you know was a dozen people 15
each one you know was a dozen people 15 people and made us feel great I mean
people and made us feel great I mean
people and made us feel great I mean employees loved them because you know
employees loved them because you know
employees loved them because you know here was a tangible thing that was not
here was a tangible thing that was not
here was a tangible thing that was not just 98 percent versus 89 percent here
just 98 percent versus 89 percent here
just 98 percent versus 89 percent here was the thing that they couldn’t do or
was the thing that they couldn’t do or
was the thing that they couldn’t do or weren’t doing it was a differentiator
weren’t doing it was a differentiator
weren’t doing it was a differentiator right and was it management so clever
right and was it management so clever
right and was it management so clever and we went through these waves of
and we went through these waves of
and we went through these waves of battles and
battles and
battles and six and oh seven and in the end we won
six and oh seven and in the end we won
six and oh seven and in the end we won they ended up closing down their online
they ended up closing down their online
they ended up closing down their online thing and two years later going
thing and two years later going
thing and two years later going completely bankrupt but we looked back
completely bankrupt but we looked back
completely bankrupt but we looked back and none of those four efforts made any
and none of those four efforts made any
and none of those four efforts made any contribution to our victory and one by
contribution to our victory and one by
contribution to our victory and one by one we had closed them down along the
one we had closed them down along the
one we had closed them down along the way every single one of those four and
way every single one of those four and
way every single one of those four and so in hindsight we realized when
so in hindsight we realized when
so in hindsight we realized when attacked we should retreat to do the
attacked we should retreat to do the
attacked we should retreat to do the core better and not try to broaden the
core better and not try to broaden the
core better and not try to broaden the surface of attack essentially and it was
surface of attack essentially and it was
surface of attack essentially and it was a great lesson for us of focus and so
a great lesson for us of focus and so
a great lesson for us of focus and so now when people say aren’t you getting
now when people say aren’t you getting
now when people say aren’t you getting in the news or sports were like
in the news or sports were like
in the news or sports were like absolutely not you know and we’re really
absolutely not you know and we’re really
absolutely not you know and we’re really confident of our answer like movies and
confident of our answer like movies and
confident of our answer like movies and TV shows on a global basis enormous
TV shows on a global basis enormous
TV shows on a global basis enormous market and so we’re much less subject to
market and so we’re much less subject to
market and so we’re much less subject to being prone to go off and chase the
being prone to go off and chase the
being prone to go off and chase the shiny object to try to have something in
shiny object to try to have something in
shiny object to try to have something in a checklist to differentiate and to
a checklist to differentiate and to
a checklist to differentiate and to trust and in hindsight if we had just
trust and in hindsight if we had just
trust and in hindsight if we had just gone from like 98 percent perfect to
gone from like 98 percent perfect to
gone from like 98 percent perfect to ninety-nine point nine we would have
ninety-nine point nine we would have
ninety-nine point nine we would have done a lot more for the business and you
done a lot more for the business and you
done a lot more for the business and you know and it’s hard work it’s operational
know and it’s hard work it’s operational
know and it’s hard work it’s operational logistics how to get DVDs not to break I
logistics how to get DVDs not to break I
logistics how to get DVDs not to break I mean the amount of polycarbonate
mean the amount of polycarbonate
mean the amount of polycarbonate analysis we had to do is all this stuff
analysis we had to do is all this stuff
analysis we had to do is all this stuff we would have beaten blog post or sooner
we would have beaten blog post or sooner
we would have beaten blog post or sooner than we did but let’s talk about values
than we did but let’s talk about values
than we did but let’s talk about values high performance freedom responsibility
high performance freedom responsibility
high performance freedom responsibility context not control these are obviously
context not control these are obviously
context not control these are obviously not math it seems like that if you want
not math it seems like that if you want
not math it seems like that if you want to do well at Netflix you have to
to do well at Netflix you have to
to do well at Netflix you have to subscribe to the values and if you don’t
subscribe to the values and if you don’t
subscribe to the values and if you don’t you’re out yeah and the reason that we
you’re out yeah and the reason that we
you’re out yeah and the reason that we publish our culture deck is so people
publish our culture deck is so people
publish our culture deck is so people can figure out before they come to
can figure out before they come to
can figure out before they come to Netflix is this the right fit for them
Netflix is this the right fit for them
Netflix is this the right fit for them well what’s intriguing for me because
well what’s intriguing for me because
well what’s intriguing for me because you’re a competitive guy is I looked at
you’re a competitive guy is I looked at
you’re a competitive guy is I looked at everything that you sent out in the last
everything that you sent out in the last
everything that you sent out in the last five years and I would like to think
five years and I would like to think
five years and I would like to think that you’ve told me enough to replicate
that you’ve told me enough to replicate
that you’ve told me enough to replicate Netflix but no one can why is that you
Netflix but no one can why is that you
Netflix but no one can why is that you know it’s probably a little like
know it’s probably a little like
know it’s probably a little like Starbucks doesn’t seem that hard to make
Starbucks doesn’t seem that hard to make
Starbucks doesn’t seem that hard to make coffee and yet 1:1 coffee chain is
coffee and yet 1:1 coffee chain is
coffee and yet 1:1 coffee chain is amazing around the world so there’s a
amazing around the world so there’s a
amazing around the world so there’s a lot of heart and passion that goes in it
lot of heart and passion that goes in it
lot of heart and passion that goes in it that doesn’t come across in the word
that doesn’t come across in the word
that doesn’t come across in the word since the execution it’s the people at
since the execution it’s the people at
since the execution it’s the people at Netflix you know
Netflix you know
Netflix you know is a very special place and if you look
is a very special place and if you look
is a very special place and if you look at the big tech companies apples done
at the big tech companies apples done
at the big tech companies apples done very well Microsoft hasn’t lost too much
very well Microsoft hasn’t lost too much
very well Microsoft hasn’t lost too much in Google’s you know lost a lot it was
in Google’s you know lost a lot it was
in Google’s you know lost a lot it was quite a bit of variation despite all
quite a bit of variation despite all
quite a bit of variation despite all three of those being talented long-term
three of those being talented long-term
three of those being talented long-term oriented companies and when you look at
oriented companies and when you look at
oriented companies and when you look at Apple one of the amazing things is when
Apple one of the amazing things is when
Apple one of the amazing things is when they did the iPhone they negotiated and
they did the iPhone they negotiated and
they did the iPhone they negotiated and talked and built relationships for six
talked and built relationships for six
talked and built relationships for six years before the iPhone was allowed to
years before the iPhone was allowed to
years before the iPhone was allowed to come to China so from 2005 2011 and
come to China so from 2005 2011 and
come to China so from 2005 2011 and that’s of a lot of patience and now
that’s of a lot of patience and now
that’s of a lot of patience and now that’s one of their largest markets in
that’s one of their largest markets in
that’s one of their largest markets in the world for the iPhone and so what we
the world for the iPhone and so what we
the world for the iPhone and so what we take away from that is a sense of great
take away from that is a sense of great
take away from that is a sense of great patience so it may be soon that we have
patience so it may be soon that we have
patience so it may be soon that we have a license in China or it may take a
a license in China or it may take a
a license in China or it may take a couple years but we’re going to be very
couple years but we’re going to be very
couple years but we’re going to be very patient and we’re looking forward to a
patient and we’re looking forward to a
patient and we’re looking forward to a time you know a decade or two decades
time you know a decade or two decades
time you know a decade or two decades from now when the Chinese middle class
from now when the Chinese middle class
from now when the Chinese middle class will want and embrace the kind of
will want and embrace the kind of
will want and embrace the kind of content that we have
thank you guys so much for watching I
thank you guys so much for watching I made this video because Luke asked me to
made this video because Luke asked me to
made this video because Luke asked me to so if there’s a famous entrepreneur that
so if there’s a famous entrepreneur that
so if there’s a famous entrepreneur that you are made of profile next leave the
you are made of profile next leave the
you are made of profile next leave the comments below and I’ll see what I can
comments below and I’ll see what I can
comments below and I’ll see what I can do I’d also love to know which of the
do I’d also love to know which of the
do I’d also love to know which of the ten rules had the biggest impact on you
ten rules had the biggest impact on you
ten rules had the biggest impact on you and why what change you’re going to make
and why what change you’re going to make
and why what change you’re going to make to your life or your business after
to your life or your business after
to your life or your business after watching this video leave it in the
watching this video leave it in the
watching this video leave it in the comments and I’m going to join in the
comments and I’m going to join in the
comments and I’m going to join in the discussion finally one thing if a quick
discussion finally one thing if a quick
discussion finally one thing if a quick shout-out to one of my tds instructors
shout-out to one of my tds instructors
shout-out to one of my tds instructors here Philippe Philippe thank you so much
here Philippe Philippe thank you so much
here Philippe Philippe thank you so much for picking up a copy of my book I hope
for picking up a copy of my book I hope
for picking up a copy of my book I hope you enjoy I love the picture that you
you enjoy I love the picture that you
you enjoy I love the picture that you posted on Facebook and yeah enjoy the
posted on Facebook and yeah enjoy the
posted on Facebook and yeah enjoy the reading over the holiday break man
reading over the holiday break man
reading over the holiday break man so thank you guys again for watching I
so thank you guys again for watching I
so thank you guys again for watching I believe in you I hope you continue to
believe in you I hope you continue to
believe in you I hope you continue to believe in yourself and whatever your
believe in yourself and whatever your
believe in yourself and whatever your one word is much love I’ll see you soon
up till 2002 all we focused on was
up till 2002 all we focused on was survival and then once we got public and
survival and then once we got public and
survival and then once we got public and and we’re profitable we started thinking
and we’re profitable we started thinking
and we’re profitable we started thinking wow this thing might last and the the
wow this thing might last and the the
wow this thing might last and the the cruelest irony would be to not want to
cruelest irony would be to not want to
cruelest irony would be to not want to work there you know to let it become a
work there you know to let it become a
work there you know to let it become a place we didn’t want to be and so we
place we didn’t want to be and so we
place we didn’t want to be and so we tried to think through what do we really
tried to think through what do we really
tried to think through what do we really care about was what we really care about
care about was what we really care about
care about was what we really care about working with incredible people on hard
working with incredible people on hard
working with incredible people on hard problems and that that was the essence
problems and that that was the essence
problems and that that was the essence so we should organize everything around
so we should organize everything around
so we should organize everything around supporting that of working with you know
supporting that of working with you know
supporting that of working with you know just incredibly talented people and so
just incredibly talented people and so
just incredibly talented people and so that led us to freedom and
that led us to freedom and
that led us to freedom and responsibility because incredible people
responsibility because incredible people
responsibility because incredible people don’t want to be micromanaged and the
don’t want to be micromanaged and the
don’t want to be micromanaged and the idea is that we manage through setting
idea is that we manage through setting
idea is that we manage through setting context and letting people run you’ve
context and letting people run you’ve
context and letting people run you’ve got to have the right people you’ve got
got to have the right people you’ve got
got to have the right people you’ve got to reinforce that with values setting
to reinforce that with values setting
to reinforce that with values setting context about what the company is trying
context about what the company is trying
context about what the company is trying to achieve but the idea is to build a
to achieve but the idea is to build a
to achieve but the idea is to build a system where amazing amounts of service
system where amazing amounts of service
system where amazing amounts of service improvement happen in the marketing and
improvement happen in the marketing and
improvement happen in the marketing and the content and the technology and these
the content and the technology and these
the content and the technology and these are interface without direct
are interface without direct
are interface without direct intervention of meat and so some
intervention of meat and so some
intervention of meat and so some companies operate by you know the
companies operate by you know the
companies operate by you know the product genius at the top and we all
product genius at the top and we all
product genius at the top and we all know these companies in this whole motif
know these companies in this whole motif
know these companies in this whole motif of you know to be a great CEO you’ve got
of you know to be a great CEO you’ve got
of you know to be a great CEO you’ve got to be the great product person who
to be the great product person who
to be the great product person who really you know and it’s intoxicating
really you know and it’s intoxicating
really you know and it’s intoxicating fun but you’re building incredible
fun but you’re building incredible
fun but you’re building incredible amounts of dependence on yourself and
amounts of dependence on yourself and
amounts of dependence on yourself and eventually you know how well I know how
eventually you know how well I know how
eventually you know how well I know how Turkish consumers consume Netflix it’s
Turkish consumers consume Netflix it’s
Turkish consumers consume Netflix it’s not that well and so you’re much
not that well and so you’re much
not that well and so you’re much stronger obviously building a
stronger obviously building a
stronger obviously building a distributed set of great thinkers people
distributed set of great thinkers people
distributed set of great thinkers people know that but in the past what they’ve
know that but in the past what they’ve
know that but in the past what they’ve done is try to make everything a process
done is try to make everything a process
done is try to make everything a process they said okay I don’t want it to be a
they said okay I don’t want it to be a
they said okay I don’t want it to be a genius so we’re going to organize a
genius so we’re going to organize a
genius so we’re going to organize a process for everything and these once in
process for everything and these once in
process for everything and these once in a while you hard-working the dummy proof
a while you hard-working the dummy proof
a while you hard-working the dummy proof it’s going to be such a good process
it’s going to be such a good process
it’s going to be such a good process than anybody this was the IBM thing and
than anybody this was the IBM thing and
than anybody this was the IBM thing and then if you dummy proof the process you
then if you dummy proof the process you
then if you dummy proof the process you only get dummies to work there you know
only get dummies to work there you know
only get dummies to work there you know to do the process and so that’s why
to do the process and so that’s why
to do the process and so that’s why we’re so you know opposed to that
we’re so you know opposed to that
we’re so you know opposed to that instead so focused on keeping people
instead so focused on keeping people
instead so focused on keeping people great food I’m realizing they’ll be
great food I’m realizing they’ll be
great food I’m realizing they’ll be mistakes but there’ll be a lot of
mistakes but there’ll be a lot of
mistakes but there’ll be a lot of positive achievement to give some
positive achievement to give some
positive achievement to give some examples of that I mean you know you
examples of that I mean you know you
examples of that I mean you know you talk about it generically it sounds
talk about it generically it sounds
talk about it generically it sounds great but what are some specific
great but what are some specific
great but what are some specific examples I take pride in making as few
examples I take pride in making as few
examples I take pride in making as few decisions as possible as opposed to as
decisions as possible as opposed to as
decisions as possible as opposed to as many as possible and so when something
many as possible and so when something
many as possible and so when something significant changes
significant changes
significant changes the content or the house of cards
the content or the house of cards
the content or the house of cards purchase you know Ted explained it it
purchase you know Ted explained it it
purchase you know Ted explained it it was a huge purchase at that time it was
was a huge purchase at that time it was
was a huge purchase at that time it was a half an hour conversation you know we
a half an hour conversation you know we
a half an hour conversation you know we went back and forth I said are you
went back and forth I said are you
went back and forth I said are you really sure it’s a great bet yes let’s
really sure it’s a great bet yes let’s
really sure it’s a great bet yes let’s do it you know it wasn’t like me reading
do it you know it wasn’t like me reading
do it you know it wasn’t like me reading the script and me meeting with Kevin
the script and me meeting with Kevin
the script and me meeting with Kevin Spacey and you know or equivalent
Spacey and you know or equivalent
Spacey and you know or equivalent samples on the marketing or equivalent
samples on the marketing or equivalent
samples on the marketing or equivalent examples on the product in the evolution
examples on the product in the evolution
examples on the product in the evolution there so it’s creating a sense of I want
there so it’s creating a sense of I want
there so it’s creating a sense of I want to make a difference than I can make a
to make a difference than I can make a
to make a difference than I can make a difference and if that’s what the leader
difference and if that’s what the leader
difference and if that’s what the leader gets excited about is that other people
gets excited about is that other people
gets excited about is that other people are making a difference and you’ve got
are making a difference and you’ve got
are making a difference and you’ve got the right people you got to be super
the right people you got to be super
the right people you got to be super demanding so the you know one part is
demanding so the you know one part is
demanding so the you know one part is freedom and responsibility the other
freedom and responsibility the other
freedom and responsibility the other part is a high performance culture where
part is a high performance culture where
part is a high performance culture where we say adequate performance gets a
we say adequate performance gets a
we say adequate performance gets a generous severance package and so you
generous severance package and so you
generous severance package and so you know we look at it we say we want to be
know we look at it we say we want to be
know we look at it we say we want to be like a major league baseball team and
like a major league baseball team and
like a major league baseball team and you know you’ve only got so many
you know you’ve only got so many
you know you’ve only got so many positions on the field and if everyone
positions on the field and if everyone
positions on the field and if everyone is not incredible at what they do then
is not incredible at what they do then
is not incredible at what they do then you’re not going to win so you turn over
you’re not going to win so you turn over
you’re not going to win so you turn over a lot of people and so we turn over a
a lot of people and so we turn over a
a lot of people and so we turn over a lot of people who feel like you know we
lot of people who feel like you know we
lot of people who feel like you know we give people a fair shot and you know we
give people a fair shot and you know we
give people a fair shot and you know we hire pretty openly and they know what
hire pretty openly and they know what
hire pretty openly and they know what they’re getting into but we’re looking
they’re getting into but we’re looking
they’re getting into but we’re looking for people who for whom freedom and
for people who for whom freedom and
for people who for whom freedom and responsibility works because they do
responsibility works because they do
responsibility works because they do incredible work and hold is part of the
incredible work and hold is part of the
incredible work and hold is part of the interviewing process do you have
interviewing process do you have
interviewing process do you have essentially a culture check like that
essentially a culture check like that
essentially a culture check like that yes but not like checklist culture is
yes but not like checklist culture is
yes but not like checklist culture is always something that we interview for
always something that we interview for
always something that we interview for of kind of curiosity and and you know
of kind of curiosity and and you know
of kind of curiosity and and you know it’s easy to find people say oh I read
it’s easy to find people say oh I read
it’s easy to find people say oh I read the nymphos culture deck I love it I
the nymphos culture deck I love it I
the nymphos culture deck I love it I really want to be there you know what’s
really want to be there you know what’s
really want to be there you know what’s harder is old you know what are the main
harder is old you know what are the main
harder is old you know what are the main things you disagree with and why you
things you disagree with and why you
things you disagree with and why you know and when we get a blank stare or
know and when we get a blank stare or
know and when we get a blank stare or were like okay not really a first
were like okay not really a first
were like okay not really a first principle thinker and when they say well
principle thinker and when they say well
principle thinker and when they say well I thought the way that you didn’t talk
I thought the way that you didn’t talk
I thought the way that you didn’t talk about how to acculturate and you know if
about how to acculturate and you know if
about how to acculturate and you know if I’m not great and day three am I out you
I’m not great and day three am I out you
I’m not great and day three am I out you know or is there you know it you look at
know or is there you know it you look at
know or is there you know it you look at it like athlete where it’s over some you
it like athlete where it’s over some you
it like athlete where it’s over some you know time period to prove yourself and
know time period to prove yourself and
know time period to prove yourself and if so what’s that time period and why
if so what’s that time period and why
if so what’s that time period and why haven’t you clarified that they were
haven’t you clarified that they were
haven’t you clarified that they were like ah yeah that’s a good insight the
like ah yeah that’s a good insight the
like ah yeah that’s a good insight the first principle thinker so we’re looking
first principle thinker so we’re looking
first principle thinker so we’re looking for people who
for people who
for people who you know are curious typically
you know are curious typically
you know are curious typically self-confident and they’re not they’re
self-confident and they’re not they’re
self-confident and they’re not they’re questioning everything around them
”
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