Netflix: Reed Hastings Impact On The Media Industry

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Reed Hastings Impact on the Media Industry
Netflix is the largest internet steaming network with over 83 million members and serving in over 190 countries (Netflix). Started in 1997, Netflix continued to see rapid success under its co-founder and CEO Reed Hastings. Hastings helped Netflix transcend the media industry. One way this was done was through its company culture, focusing on providing autonomy to its employees. Another component of Hastings achievements is being an innovator in the industry. Hastings’ decision to start Netflix’s online streaming service was criticized at first but ended up being a major triumph. However, there were times were Netflix’s future looked bleak. During this crisis Hastings had to make sure his company stayed
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Freedom and Responsibility, a 124-slide presentation, outlines how Netflix views its employees and other philosophies. Hastings helped create these guidelines many companies attempt to imitate. One of these ideologies is hiring people that hold themselves accountable and rely on logic and critical thinking (Sandoval 2012). Instead of forcing its employees to follow detailed policies, Hastings seeks employees that are autonomous, honest and mature. Hastings emphasizes the expense policy “act in Netflix’s best interest” (McCord 2014). This simplicity makes it clear to its employees what to focus on while giving them control of how to achieve it. Another characteristic of the Netflix culture is having clear communication so employees know the objectives and goals. Hastings surrounds himself around people with varying skills. With a assortment of people, there needs to be a sense of direction. There are many facets to a business, so not having proper communication causes a lack of awareness. Communication is critical to allow everyone to see a common vision. One way Hastings does this is by not having his own office (McCord 2014). He can be seen walking around Netflix’s office, making himself available to his employees. By Hastings making himself easily reachable, it sets the standard of communicating to all departments to ensure everyone is one the same …show more content…
Hastings helped lead the way for the company to start creating its own original content. In 2011, Netflix paid over $100 million to secure the rights for the TV series House of Cards. This bid was made before the pilot was released (Copeland). Many analysists thought this move was risky. But Hastings knew several things. He had an awareness of his product. Netflix is able to see what its subscribers are watching and analysis it into categories. This is an advantage Netflix has over his competitors. Since Hastings had the data his competitors did not, he was able to make strategic decisions. Furthermore, Netflix does not own its original content. It only has the right to air these shows exclusively on its service. This financially saved money. Netflix is one of the biggest influencers in the media industry. Its success can be accredited due to Hastings ability to be a leader. Hastings established a company culture many of Netflix’s competitors attempt to emulate. His capability to be a trend sender and navigate through crisis made Hastings a historical manger in the field of

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