Reed Hastings - Building Netflix - [Invest Like the Best, EP.453]

Introduction

PatrickThe most interesting thing about studying Netflix and talking to Reed is that it is, as a business, probably the single most relatable example, since we all watch Netflix, of two really simple ideas that everyone talks about, but are very hard to do in practice. The first is this notion of finding a simple idea and taking it extraordinarily seriously. Netflix has effectively been scaling up its core original model since its inception. Reed talks in our conversation about how even the DVDs were nothing but a stepping stone towards the streaming future that they envisioned at the very outset of the company's founding in 1997. And simply letting that idea play out over decades without getting distracted, and how powerful that can be.

And the second is this notion of talent density. This is a term that now gets thrown around in every major company. And really, it was Reed and Netflix that pioneered this concept of what can happen if you set and keep a talent bar exceptionally high. We get into why that's difficult, what Netflix did to make that talent density bar work and sustain itself over decades. This conversation really is an ode to those two simple concepts. And of course, in this case, it's fun to learn about because it's something that we all watch every day.