Professional Documents
Culture Documents
Netflix: 1. Development History
Netflix: 1. Development History
I. Introduction:
1. Development History:
- 1997: Reed Hastings and Marc Randolph had an idea to rent DVDs by mail.
They tested the concept by mailing themselves a DVD. The DVD arrived intact,
and the idea for Netflix was born.
- 1998: Netflix.com, the first DVD rental and sales site, is launched.
- 1999: The Netflix subscription service debuts, offering members unlimited
DVD rentals without due dates, late fees, or monthly rental limits.
- 2002: Netflix makes its initial public offering (IPO), at a selling price of $1 a
share under the NASDAQ ticker NFLX.
- 2003: Netflix is issued a patent by the U.S. Patent & Trademark Office to
cover its subscription rental services as membership surpasses 1 million.
- 2005: The Profiles feature launches, allowing members to create different lists
for different users and/or different moods.
- 2007: Streaming is introduced, allowing members to instantly watch series and
films.
- 2008: Netflix partners with consumer electronics brands to allow streaming on
Xbox 360, Blu-ray players and TV set-top boxes.
- 2009: The Netflix Culture Deck is published.
- 2010: Netflix arrives in Canada and streaming launches on mobile devices.
The first dedicated kids experience debuts on streaming.
- 2011: Netflix launches in Latin America and the Caribbean. The first Netflix
button appears on remote controls.
- 2012: Membership reaches 25 million members, and expands into the United
Kingdom, Ireland and the Nordic Countries.
- 2014: Netflix begins streaming in 4K Ultra HD.
- 2016: Netflix expands to 130 new countries, bringing the service to members
in more than 190 countries and 21 languages around the world. The Download
feature is added for offline and on-the-go viewing.
- 2017: Membership hits 100 million members globally. Netflix wins its first
Academy Award, for 'The White Helmets.'
- 2018: Netflix is the most-nominated studio at the Emmys, winning 23 for
series. PIN protection is rolled out as part of several parental control
enhancements.
- 2019: Netflix wins four Academy Awards. New production hubs open in
London, Madrid, New York and Toronto. 'Bandersnatch' wins the first major
Emmy for an interactive title.
- 2020: Top 10 lists debut, allowing members to see what’s popular for the first
time. Netflix is the most-nominated studio at the Academy Awards and Emmys.
The Hardship Fund launches to aid creative community workers impacted by
COVID-19, and two percent of our cash holdings move to financial institutions
supporting Black communities.
2. Business area:
Netflix, Inc. happens to be one of the most successful entertainment
mass-media-companies of all times. Netflix, Inc. originally began its inception
in 1998 by providing services to customers through means of mailing out
physical copies of movies, shows, video games and other forms of media
through standard mailing systems.
Through its successful startup and the rapid changes that technology introduced
over time, Netflix converted its business model. They went from physical copies
handouts to allowing customers streaming their favorite contents from the
comfort of their own convenience.
Today, the platform has advanced to streaming technologies that have elevated
and improved Netflix’s overall business structure and revenue. The platform
provides its viewers the ability to stream and watch a variety of TV shows,
movies, documentaries and much more, through means of using a software
application.
“Netflix, the streaming giant that revolutionized the entertainment business, has
a reputation for its high-pressure workplace. Employees are told to see
themselves as part of a “pro sports team” -- not a family.”
Netflix has a fairly unique interviewing process that is unlike most major tech
companies.
1/ Recruiting Requirement
+ Hiring for teams: They hire for the company first, then match new hires
to specific teams using various criteria, such as their background and skill
set.
+ Culture fit: This is without a doubt the most important aspect of your
interview: 40-50 percent of the Netflix interview is based on culture fit
questions. They have an entire document dedicated to their culture and
values. If you really want a job at Netflix, then you must read this
document carefully. As an exercise, it’s suggested that you think carefully
about each value and how it relates to your personal and professional
experience.
Superior technical proficiency is less likely to net you the job than the
right personality. The company famously eschews “brilliant jerks” -- high
performers with poor interpersonal skills.
The recruiter will ask questions about Netflix’s culture, your past projects, and
basic technical knowledge to test your domain expertise. Be prepared for blunt
behavioral questions, such as: What don’t you like about Netflix’s culture?
1. How would you test the latest iPhone's new antenna system? —
Senior QA engineer candidate
3. Explain how the process works from the time you enter
http://www.Netflix.com into your browser and the data is
rendered on screen. — Software engineering manager candidate
+ The second half of the onsite interview is less technical. You’ll speak
with two directors. Be prepared to discuss culture fit at every stage of the
interview process. The interview experience is intense and Netflix does
not waste any time: if you perform poorly at any stage, the interview
usually ends early.
Sample culture-focused questions at Netflix
1. You have a great idea for how to improve our product, but
you’re worried about stepping on someone else’s toes. What do
you do?
2. It’s your first day on the job and you have a few hours to kill
before orientation. What would you do with that time?
3. Tell me about a disagreement you’ve had with a coworker from
another functional area. What was the nature of the disagreement,
and how did the two of you work together to resolve it?
Summary:
It doesn’t hurt to study up on problems about algorithm or data structure, but for
the most part they won’t help you in a Netflix interview. What Netflix really
wants to see is your understanding of the role (challenges, technologies, how
you fit), your technical acumen (coding, design, and overall knowledge of a
language), and last but not least, your cultural fit
B/ Compensation
1/Work-life balance
When it comes to their personal lives, Netflix does not dictate what its workers
do at their homes and allows them to enjoy their personal lives to their fullest.
The company believes in providing its employees the resources that help them
strike a better work-life balance.
a). Parental Leave: Netflix recognizes that one of the most special events in an
individual's life is the birth or adoption of a child. So they introduce a parental
leave policy for new parents that allows them to take off as much time as they
want after having a child. Their parental leave policy is: "take care of your baby
and yourself." New parents generally take 4 - 8 months.
“We want employees to have the flexibility and confidence to balance the needs
of their growing families without worrying about work or finances,” Tawni
Cranz, the company’s chief talent officer said.
b). Time Away: Netflix encourages its employees to take personal time off
from their jobs to enjoy their lives. At Netflix, people intermix and work a lot.
This is good for employees’ mental health and allows them to lose stress
regularly. At Netflix, they do not believe in having rigid rules since it is against
their core philosophy. The same applies to leaves also. The company does not
have a nine to five work policy and neither any rigid rules related to time offs
for the salaried employees. There is no set holiday or vacation schedule either at
Netflix. People are allowed to do what is important for them. The company
believes in working smarter and not harder. So, people can take a break
whenever their mind and body feel like it is time to take a break.
c). Family Forming: Support families at Netflix are offered family forming
benefits during fertility, surrogacy, or adoption journey. This benefit is available
to employees and their spouse/domestic partner, regardless of marital status,
gender, or sexual orientation. These times are both emotionally and physically
challenging for the employees and Netflix recognizes this challenge. Netflix
also offers an allowance to its employees through Carrot to support them over
the course of their family forming journey.
2/Finances
See below for Netflix’s philosophies on stock options, compensation, and
charitable giving.
a). Stock Option Program: Netflix has allowed its employees the freedom to
select how much of their compensation they want in the form of salaries and
how much in the form of stock options. So employees can choose all cash, all
options, or whatever combination suits them. Employees choose how much risk
and upside (down) they want. These 10-year stock options are fully-vested and
workers can keep them even if they leave Netflix.
b). Personal Top of Market: To retain employees for longer, the company pays
them at the top of their personal market. Netflix takes a market-based approach
to compensation. The talent market is not defined by set bands and grades. The changes in the market are
Living culture of freedom and responsibility, Netflix treat their employees like
an adult and trust them. Everyone has the ability to make an impact, a seat at the
table, and is expected to contribute, create, and share. See below on Netflix’s
philosophies around allowing employees to do their best work possible and not
being held down by unnecessary process.
They do not have a set travel policy at Netflix. Using guiding principles of
context, not control - employees can use judgement to make decisions that are
effective to the business and set them up for success.
b). Work and do not drive: Commuting to work can be difficult for people and
apart from being time-consuming, long-distance commutes can also be stressful,
particularly during rush hours. Netflix has partnered with a ridesharing service
to ensure that its employees do not have to drive to work and have the flexibility
to focus on work while they commute.
Summary
This adult belief system allows the business to provide flexible benefits and
incentives, with the same guiding principle “do the right thing for Netflix”. Two
of their “non policies” following this ethos are:
Summary
A recruiting platform that’s inspired by Netflix’s transparent and collaborative
culture, and built on an innovative framework that embodies those very ideals –
it’s a beautiful vision.
2. Compensation: the criteria that are absolutely essential for success in the
model of compensation:
- Premium pay. As noted above, Netflix salaries are targeted at the 90th
percentile and annual adjustment decisions focus on keeping employees
at a highly competitive
level of pay.
Summary
The Netflix benefits programs center around creating flexibility for employees,
so they are supported both inside and out of work.
HR: Conclusion of Netflix’s Human Resources Management.
- Netflix maintains a corporate culture that helps keep its organization flexible,
innovative, and responsive to market demand and consumer preferences. The
emphases on employee autonomy, communication, attitude, productivity, and
rule avoidance create a business situation where employees are motivated to
take risks and deliver innovative ideas that contribute to the online company’s
competitive advantage.
- Netflix's no-holds-barred approach to HR has gained the attention of many,
both good and bad. This is because they’ve succeeded not only in retaining
prime talent, but also in achieving a high-performance culture.
-> Through Netflix’s HRMS schemes it is evident that they have fulfilled the
objectives of they system by maximising recruitment and retention of the
appropriate staff, develop cost effective reward policies, develop global reward
practises that are fair and consistent, and ensure consistency with business
strategy. Netflix has been successful with its refreshing approach to Human
Resources. The key take-away for others here is definitely to get rid of the
outdated strategies which fail to provide results.