Netflix - Reed Hastings

2. ABOUT
Netflix, Inc. is an American
entertainment company founded by
Reed Hastings and Marc Randolph on
August 29, 1997, in Scotts Valley,
California. It specialises in and provides
streaming media and video-on-demand
online and DVD by mail. In 2013, Netflix
expanded into film and television
production, as well as online
distribution.
COMPANY
INTRODUCTION

3. IDEA
Reed Hastings - "I had a big late fee for
'Apollo 13.' It was six weeks late and I owed
the video store $40. I had misplaced the
cassette. It was all my fault. I didn’t want to
tell my wife about it. And I said to myself,
'I’m going to compromise the integrity of
my marriage over a late fee?' Later, on my
way to the gym, I realized they had a much
better business model. You could pay $30 or
$40 a month and work out as little or as
much as you wanted."
WHERE IT ALL STARTED

4. REED
HASTINGS
Reed Hastings
revolutionized how the
world watches its
entertainment. He's the
co-founder of Netflix, the
video-streaming service
that offers TV shows and
movies, as well as original
content like Emmy-
winning House of Cards.

5. As Netflix grew, the company began getting noticed
for its innovative management practices—the results
of the culture Hastings was exploring—called
"Freedom and Responsibility." Netflix is known to pay
salaries that are typically much higher than customary
to attract the best talent and is one of the few
companies where employees can choose annually
how much of their compensation they want in cash
vs. stock. "We're unafraid to pay high," says HastingsAs
Netflix grew, the company began getting noticed for
its innovative management practices—the results of
the culture Hastings was exploring—called "Freedom
and Responsibility."
NETFLIX CULTURE

6. In July 2011, Netflix announced that
subscription prices were changing:
that DVD rental prices would drop by
20%, but that the initially free
streaming service would now be
charged. For many customers this
represented a savings, but for the
group that both received discs and
enjoyed streaming, it would result in a
cost increase of up to 60%.
COMPANY CONTROVERSY

7. TIMELINE
1997 - Reed Hastings and software executive Marc Randolph co-found
Netflix to offer online movie rentals.
1998 - Netflix launches the first DVD rental and sales site, netflix.com.
2000 - Netflix introduces a personalised movie recommendation system.
2005 - The number of Netflix members rises to 4.2 million.
2007 - Netflix introduces streaming, which allows members to instantly
watch television shows and movies on their personal computers.
2014 - In 2014 Netflix launched in 6 new countries in Europe (Austria,
Belgium, France, Germany, Luxembourg and Switzerland).
2016 - Netflix is available worldwide.

8. The rise of Netflix has affected the way
audiences watch televised content. Netflix's
CPO Neil Hunt believes that Netflix is a
model for what television will look like in
2025. He points out that because the
Internet allows users the freedom to watch
shows at their own pace, an episode does
not need cliffhangers to tease the audience
to keep tuning in week after week, because
they can just binge straight into the next
episode.
NETFLIX IN 2017

9. 1. Plan for what you want the company to become, not what
it may be limited to on Day One.
2. Telling the truth builds — and helps regain — goodwill.
3. Talent management is a key, often overlooked
management skill. Not at Netflix.
LESSONS BY
REED HASTINGS
Hastings often talks about how he makes
fewer and fewer decisions as Netflix
grows, leaving more decisions to the team
he has assembled.

10. THANK
YOU
Gunjan Dua - 494
Nishant Sanganeria - 495