Posts Tagged 'dvd'

Innovators Wanted – The Netflix Story

I came across this story a while back and faved it for later, which is now. Innovation is defined asĀ a change in the thought process for doing something or “new stuff that is made useful” (from Wikipedia). The following example focuses on the change in the thought process of a company’s CEO, and the actions he’s taking to keep his company in the lead.

Netflix Strategy - The Future

Netflix Strategy - The Future

Reed Hastings, Netflix Co-founder and CEO, uploaded a presentation last month, called Netflix Business Opportunity (RSS readers click here). In the 40-slide deck, Reed quickly reviews Netflix performances to date and shifts to the future – threats and opportunities, and what his company must do in order to continue the growth and lead the market.

Netflix - The Future

Netflix - The Future

In a candid inside look into his own company, Reed is saying ‘Our main revenue stream is dying, we need to find and cultivate a new one’. That’s not an easy statement to read, yet alone write, for a CEO. The DVD-by-Mail service will grow for 3 more years, but streaming will eventually replace it. If Netflix wishes to grow, it must focus on ‘a single segment of the streaming market, where we can gain and maintain leadership’.

Netflix segment - to lead and maintain leadership

Netflix segment - to lead and maintain leadership

How Netflix intends to gain and maintain leadership? By Democratizing Innovation, meaning leveraging the company’s assets – its customers and employees. Reed explains the threats to the company’s new strategy (Pay-Per-View, Piracy, Cable/Sat/DVRs, Direct/Online/Free, etc), but also how to compete with them – providing superior customer service, improving subscribers’ satisfaction, creating amazing user experience, and keeping subscribers raving about Netflix (among others).

Democratizing Innovation

Democratizing Innovation

The complete deck is embedded here, definitely worth the reading time. I know that once Netflix launch in Israel (expanding international begins 2010) – they have my vote, and subscription.

What about Brilliant Jerks?

Image representing Netflix as depicted in Crun...Image via CrunchBase

Going through Netflix’s latest ‘Culture‘ presentation I came across that line (slide 34), under High Performance, one of the seven aspects at Netflix. The 128 pages presentation is A MUST for any company’s C-Level and HR, and it details what matters at Netflix, paying special attention to workforce efficiency. It also deals quite bluntly with stuff other companies keep inside, like layoffs and employee retention (slide 27):

We’re a team, not a family. We’re like a pro sports team, not a kid’s recreational team. Coaches’ job at every level at Netflix (is) to hire, develop and cut smartly, so we have stars at every position.

Clear out 30min of you day and learn this presentation. You won’t regret it.


View more presentations from reed2001.

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Mobile & Media Consultant. I help startup companies launch products to the consumer market. Reach out: dvir.reznik [at]



This is my personal blog. The postings here do not represent the thoughts, intentions, plans or strategies of my past employers or of my clients. It is solely my opinion.