RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

I started my entrepreneurial journey in junior high school by selling cinnamon sticks, which sparked my desire to create things.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

At Stanford in the mid-80s, I realized there was a market for a foot mouse to improve computer usability, but it turned out to be a terrible idea.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

My first company, Pure Software, taught me that hard work alone isn't enough; I lacked business sophistication and faced internal chaos despite having excellent products.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

When Netflix started in 1997, we focused on customer needs and recognized that the DVD rental model would eventually transition to streaming as the internet improved.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

In 2011, we made the aggressive decision to separate our DVD and streaming services, which led to significant backlash and a drop in stock, teaching us the importance of balancing innovation with customer expectations.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The keeper test at Netflix encourages managers to assess whether they would fight to keep an employee; if not, we suggest offering a severance package to ensure a high-performance culture.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

I believe that great teams are built on love and warmth, and we should aspire to create a culture of big-hearted champions who take responsibility for their actions.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Our primary responsibility at Netflix is to entertain our customers, and we take that very seriously, focusing on providing great entertainment rather than reflecting our values in every show.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

AI will help us be more creative and produce more shows using those tools, acting as an accelerant for storytelling.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

We're super focused on using AI to tell better stories, even if it means that competitors like Disney might do a better job with AI than we do.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

In the long term, if AI replaces humanity in entertainment, it could lead to significant changes in how we engage with content.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

We haven't used AI in final production yet, but it's incredible for prototyping and imagining scenes.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

We have about three years into our gaming effort, aiming to be the most creative gaming studio that produces games everyone wants to play.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Gaming requires significant upfront investment, similar to film and television, and we need to build a strong creative foundation to compete with pure gaming companies.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

User-generated content from platforms like YouTube and TikTok poses a threat to Netflix, as it can draw viewers away from our professional content.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

To maintain relevance, we must lead in professional content and continuously raise the bar on our offerings, whether in film, series, or gaming.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The co-CEO model at Netflix works well because it leverages the strengths of two people who trust each other deeply, but it's not a general technique for all companies.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Building trust in a leadership relationship requires a culture of candidness and caring, where feedback is encouraged and valued.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Diversity, equity, and inclusion (DEI) initiatives are essential, but there's been backlash against them, especially in big tech, which we need to address.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The aspiration for inclusion and fairness is a core value of America and capitalism, and we must continue to strive for a meritocracy that works for everyone.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

Focusing on black excellence and achievement is crucial to overcoming the historical burdens of discrimination and creating a better society.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

As future leaders, cultivating black excellence involves having honest conversations about race and gender, and continuing to strive for equal opportunity.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

While entertainment focuses on connection, immersive technologies like VR and AR may not significantly impact storytelling due to their isolating nature.

RH

Reed Hastings

02/24/24

@ Stanford Graduate School of Business

The annual performance review is often ineffective; continuous feedback throughout the year is more beneficial for employee development.

Reed Hastings, Chairman and Co-Founder of Netflix

Takeaways