Consistent feedback helps turn good employees into great ones.

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. 

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

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?

But as the world changed, it became clear that Netflix did have something different.

In 2010, Blockbuster declared bankruptcy — they’d been unable to transition from DVD rentals to streaming.

In 2000, Netflix co-founders Reed Hastings and Marc Randolph tried to sell their company to Blockbuster for $50 million.

“Of course, [Blockbuster] wasn’t interested. What did we possibly have to offer that they couldn’t do more effectively themselves?”

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.”