Summary of How Netflix Changed Entertainment – and Where It’s Headed

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How Netflix Changed Entertainment – and Where It’s Headed summary

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8 Overall

7 Importance

9 Innovation

7 Style

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Netflix co-founder and CEO Reed Hastings sits down with TED curator Chris Anderson to discuss the bold risk-taking behind Netflix’s success. Hastings reveals the corporate culture and values that have made Netflix so innovative and fields challenging questions about how the algorithm-driven company avoids feeding subscribers too much viewing “candy.” getAbstract believes business leaders and strategists will appreciate this casual but substantive interview with a modern visionary.

In this summary, you will learn

  • Why Netflix made the shift to original programming and
  • How the company’s culture enables bold risk-taking.
 

About the Speakers

Reed Hastings is a former high school math teacher who eventually became the co-founder and CEO of Netflix. Entrepreneur and innovator Chris Anderson is the curator of TED. 

 

Summary

Netflix built its success on risk-taking – and not always the confident variety. The entertainment company took its first leap when it expanded beyond mail-delivered DVDs to offer streamed content. By 2011, the company had more than six million subscribers and steady growth when its leaders decided to produce House of Cards at a cost of $100 million. Creating content, rather than just delivering licensed shows and movies, was a “bet-the-company decision.” Yet the gamble paid off by strengthening the Netflix brand, thus attracting more subscribers. With its new series, Netflix also introduced a mode of consumer viewing: binge-watching. Netflix’s decision makers had become familiar with the concept from their history of shipping DVDs. They’d all experienced how having an entire TV series on DVD could trigger watching episodes back-to-back, and they knew that binge-watching would differentiate Netflix from traditional TV. In 2018, Netflix will invest about $8 billion in producing original content, such as the hit shows Stranger Things, The Crown and Orange Is the New Black

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