In this episode, Nam and Sean discussed Netflix, one of the most popular streaming services ever exists. They went back to 1997 where Netflix started its journey to become one of the most influential companies of the generation. They talked about the challenge and obstacles that almost led Netflix to bankruptcy after failed to be acquired by their famous rival Blockbuster. Thanks to the leadership of Reed Hastings, the company did not only survived but also thrived and adapted to the fast-changing streaming market. Tune in for more Netflix and chill!
Netflix was first founded in August of 1997 by two serial entrepreneurs, Marc Randolph and Reed Hastings
At first people order the DvD and Netflix send it to your home and after you done you send it back
Dot com bubble almost kill Netflix and force the founders to offer to sell the company for Blockbuster for 50 millions
Change from rental to subscription model
https://www.slideshare.net/reed2001/culture-1798664
There are 7 Aspects of our culture
Pro sport team, not family
Wants star in every position
Netflix only hire the best talent
Never hire new grad
3+ years experience 300k/year cash
6+ year 450-500k/year cash
Redbox and Roku sprung out from Netflix
Blockbuster failed but could have won
Debate between DVD vs DVIX for too long
Investor (Carl eichen) bought out huge percent of blockbuster and replaced ceo with new ceo, someone who didn’t believe in online business. He thought everything would go back to brick and mortar. Netflix was losing sales to blockbuster after bb released total access.
In 2001, Netflix layoff 40% of its employee after failing to sell the company to Blockbuster
Reed Hastings book: https://www.amazon.com/No-Rules-Netflix-Culture-Reinvention/dp/B0845Z14DX/ref=sr_1_1?dchild=1&keywords=no+rules+rules&qid=1626216457&sr=8-1
Give employees freedom because true freedom comes from careful planning
Candor/Honesty
Freedom promote accountability