By 2019, Netflix had over 167 million subscribers in 190 countries and its original film Roma won three Oscars. Why did it, and not Blockbuster, succeed?

NETFLIX’S CULTURE PROMOTES FREEDOM AND RESPONSIBILITY AND HELPS EMPLOYEES INNOVATE AND ADAPT

Netflix has what Hastings calls a “no rules rules” culture. They value “innovation over efficiency” and “people over process.”

This means employees are given free rein to pursue new ideas that they see as in the best interest of the company. 

This flexibility leads to new discoveries and allows Netflix to consistently reinvent itself in a rapidly changing world. 

It’s important to note that Netflix’s culture of freedom is made up of three elements:

• building up talent density,
• increasing candor, and
• reducing controls.

Talented people make one another more effective.

Consistent feedback helps turn good employees into great ones.

Highly successful and creative people can innovate better with more freedom.