Netflix's Business Culture: The Secret to Its Success

In the competitive world of entertainment, Netflix has become a global technological giant that revolutionized the way we consume movies and series.

However, Netflix's enormous success is not only due to its innovative and revolutionary business model, but also to a unique business culture that encourages responsibility, autonomy and experimentation.

Historical Data

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. Initially, the company focused on renting DVDs through the mail in the U.S. market, but in 2007, it introduced the streaming service, revolutionizing the way people consume movies and television programs.

As streaming gained popularity, Netflix invested in the production of original content, launching successful series such as”House of Cards“and”Stranger Things”. Today, Netflix is one of the most popular streaming services worldwide, with millions of subscribers and a wide variety of content available on its platform.

An interesting fact about Netflix is that the company considers itself a pioneer in the use of personalized recommendation algorithms. In addition, in 2013, Netflix began producing original content, which has allowed it to have a greater control over your entertainment offering and has generated hits acclaimed by critics and the general public.

To properly understand Netflix culture, it can be classified as 3 fundamental pillars:

1. Fostering Innovation with an Elite Team

Netflix has cultivated a business culture focused on constant innovation. From its inception as a mail-order DVD rental service to its current position as the world's leading streaming platform, the company has demonstrated a remarkable ability to adapt and evolve.

This innovative mindset is manifested in its disruptive approach to original content production, the implementation of personalized recommendation algorithms and the adoption of new technologies to improve the user experience.

On the other hand, it should be noted that to achieve this level of innovation in its team, Netflix has the best of the best in its workforce. In addition, this elite team is better paid than its direct competitors.

The firm prefers to have few but exceptional workers, rather than many who are only good. She discovered this when she was forced to have to lay off a third of her workforce when the famous broke out “Dotcom” bubble.

2. Freedom, Responsibility and Trust

Netflix is known for its focus on employee autonomy and responsibility. The company trusts that the people it hires are professionals highly trained and gives them the freedom to make decisions and take risks.

Instead of imposing a strict hierarchical system, Netflix promotes a culture based on trust and individual responsibility. This is reflected in his famous policy of”Freedom and Responsibility“, where employees are expected to make intelligent, ethical decisions and be responsible for their results.

An example of this policy of full trust is the removal of controls. First, the spending policy was eliminated and then the vacation policy.

This may seem counterproductive, but what Netflix did was tell its employees that they can Go on vacation whenever you want and as many days as they need. As long as their work went ahead without losing quality.

Regarding expenses, the company gives its employees enough confidence so that they don't spend too much when they have to stay in hotels or have meals with customers.

3: Experimentation and Customization

Another highlight of Netflix's business culture is its focus on experimentation. The company encourages its employees to try new ideas and take calculated risks.

The mentality of “failing fast” and learning from mistakes is fundamental to encouraging innovation and continuous improvement. Netflix also values the honest and constructive feedback, allowing its employees to learn and grow in a work environment that encourages constant improvement. Did you know that anyone can interrupt a colleague in the middle of a presentation (including the CEO) if their contribution believes it is beneficial to the person?

The experimentation and customization of the platform is so extreme, that some covers or others of movies and series are even shown depending on each user because of their tastes or behavior within Netflix.

Conclusion:

Netflix's business culture is distinguished by its focus on innovation, autonomy and experimentation. These core values have been key to driving its success in the entertainment industry and maintaining its position as a streaming leader.

By fostering a work environment where creativity and freedom of choice are valued, Netflix has created an environment conducive to the generation of revolutionary ideas and the production of high-quality original productions.

However, not all companies are ready to establish a model like Netflix in their organizations, but we can extract important values to apply in our daily lives with our employees. Starting, for example, by giving them greater freedom for decision-making, less internal controls and increased trust.

If you need help implementing an Employee Experience strategy in your company to work on culture, our team will be happy to help. You can write to us through hola@izo.es or through this form.