Adam Reisfield's West Coast Experience

Netflix

What I Knew Before

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• Netflix originated as a movie delivery service, and made the transition to focus on the streaming aspect of their service

• Netflix has recently began producing their own original series

• Netflix has faced increased competition in recent years, with other streaming services popping up like Hulu, HBO GO, etc.

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Introduction and Expectations

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I expected Netflix to be a very different visit than others because the service that they offer is so different than the other companies that we visited.  As a Netflix user myself, I was very interested to learn about the company progression and how the business manages its immense traffic, manages producing shows while maintaining systems, and plans to grow its business.  

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Netflix currently has over 100 million subscribers, with 15% of the US population having an account.  33% of North American internet traffic is from Netflix between 9 pm and midnight.  

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Visit Summary

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At Netflix, we sat in a very unique meeting space that was very open and encouraged free collaboration and discussion.  The lecture with Andrew Park, Senior Manager of Technology Planning and Analytics, and UMD alumn.  Interestingly enough, we learned that Netflix has no budgeting for employees; rather, employees are trusted to use their discretion.  This goes along with the theme that Netflix employees are not micromanaged.  Rather, there is a high level of trust between employees and managers to ensure that jobs get done.  We also learned that Netflix uses Amazon Web Services, interconnecting some of the companies that we visited in an interesting, mutually beneficial way.  Netflix has experienced rapid growth, and continues to grow today.  They had  an IPO worth $82.5 million in 2002, and now the Netflix brand is worth $32.9 billion.  As I learned in my information systems class, the biggest regret of Netflix was launching their IPO so early, because then other companies got a look at the books of Netflix, seeing how profitable they were, encouraging more competition.  

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We also learned about Netflix's high turnover rate.  First off, because of the competitiveness of a position at Netflix, they offer on average 20% more per position compared to other Silicon Valley technology companies.  With that being said, they have an "outstanding employees only" policy which shows employees the door if they are just performing "adequately."  To combat these expectations, along with the increased pay, they also offer generous severance packages and employee autonomy for work hours, vacations, parental leave, and more.

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Netflix's company culture, which encourages independency, is very different from many other companies we visited.  Netflix shares information very openly, broadly, and deliberately, and only looks for employees to be extraordinary candid to one another.  Ultimately, they seek employees who will act in Netflix's best interest.  The line that really capsulates all else is that Netflix is a company that prides itself on not having rules.

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Key Takeaways

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• Silicon Valley is only for people who are ready to work like a dog. Netflix is not looking for your stereotypical 'family' type workplace, but rather a dream team that will be incredibly efficient.  Having a good foundation of knowledge is integral to success because Netflix expects you to be a contributing team member as soon as you join the team.

• Only people who thrive under pressure, are good decision makers, and trust their ability to be very efficient and productive should work at Netflix.

• Netflix has done a great job of continually adapting, first being the ones to bring in this disruptive technology, or changing atoms to bits, and then also staying ahead of competition with their own original content. 

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Post Action Visit/ Thoughts

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Reflecting on Netflix, I can confidently say it is a company that I would never want to work for.  The bottom line is that I would not thrive in an environment where I constantly feared losing my job.