A Tale of Two Netflix Strategy Decks

In a world where CEOs eschew social media sharing, Netflix’s Reed Hastings likes to share. Two recent strategy decks speak to Netflix’s desire to lead by standalone example: via company culture and the business opportunity that Netflix’s longtail and tv-driven consumption model with streaming has created.

The first deck on Netflix Business Opportunity was published to Slideshare five days ago and has 8.6k views; the second on Freedom and Responsibility Culture was published 10 months ago and has 404k views (here’s hoping a lot of HR directors use SlideShare).

Reed Hastings runs a very open or transparent ship, depending if you believe both of these Powerpoint decks originated from his desk. Of note, they were uploaded via different “Reed” Slideshare accounts, but the pacing and style are pretty similar in tone.

In addition, the amount of detail, promote the theory that these are both original and proprietary to Netflix’s strategy. View the decks and decide for yourself:

Business Opportunity

In sum, the culture document is a must-read for all job seekers and HR departments; it also fits well with process-driven CEOs who need to look at results and building successful continuity. The business opportunity doc

1. Growth: 12.27M subs in 2009 towards 17M in estimated 2010. $116M in profit in 2009 to xx in 2010.
2. Decade Ahead: Innovating at web speed to create amazing internet video experiences on xx platforms; and augment video package (like “having a motorcycle and a car”).
3. Threats: CST (Cable/Satellite/Telco) makes our service more supplement but no one leaves CST for Netflix; Pay Channels (HBO, Starz, Showtime, Epix) where Netflix is just another valuable distributor; Hulu, when it goes subscription threatens Netflix; CE/Retail Giants (Apple, Google, Sony, BestBuy) Netflix can defend segment better, Blockbuster spent $500M to enter field; Piracy, Netflix supports three-strike legislation; ISP/Net Neutrality, would be PR disaster for CSTs; $1 New Releases (Redbox, Coinstar) complementary to Netflix’s catalog and streaming offerings, no hit on Netflix subs; $100 CPM Threat (Google et al could nail ad targeting and ad-based films are free; Very Cheap PPV Threat (Apple, Amazon, Cable) at $1 rentals would be too disruptive to other channels; Producer Direct Threat (Cameron with Avatar.com) doubtful model but limited PPV could work on hot releases
4. Netflix Strategy: Keep improving service (streaming content, UI especially on TVs, personalized/adaptive UI to support catalog growth); avoid PPV, ad-supported, sports/news/adult/UGC; low operating margins; expand internationally in 2010
5. Last Slide: “Innovators Needed.”

Netflix’s corporate culture is based on the following 7 tenets:

1. Values are what we Value: Judgment, Communication, Impact, Curiosity, Innovation, Courage, Passion, Honesty, Selflessness
2. High Performance
3. Freedom & Responsibility
4. Context, not Control
5. Highly Aligned, Loosely Coupled
6. Pay Top of Market
7. Promotions & Development