Ted Sarandos has never pretended to be a bearer of the status quo. During his tenure with the company, Netflix has undergone major transformations against the tides of industry. From pulling consumers out of Blockbuster brick-and-mortars to leading the cut-cording revolution, Netflix is what happens when determination, agility, and innovation are fostered and empowered.
But where does that persistence come from? Is it stubbornness or passion and vision? From refusing to release data on viewers to dropping all episodes of a new series simultaneously and a reputation for lax production guardrails, to its ongoing beef with theaters, the OG streamer has always marched to the beat of its own drum and never relented.
Should Netflix customers expect anything less?
The entertainment industry is undergoing a massive transformation. From the onset of the pandemic, remote work has expedited society’s shift to virtual (which was already well on its way), and live streaming (yes, live streamers) now makes up just under a third of all video streaming. Web3, the Metaverse, endless content; so much is changing, who can keep up?
The cable wars of the last century are over. In fact, analysts anticipate cable programming to make up less than a third of all viewing by the close of 2022. This is why Ted’s comments on the market and competition in the streaming industry are so profound.
Speaking to Jason Bateman and Will Arnett on Smartless, Sarandos talks about why Netflix always seems to be in direct conflict with traditional players in the entertainment industry and what makes the company so innovative.
“My kids are 26 and 24. I tried to get them to understand that there was a time that, if you slept in on a Saturday, that’s it, you missed cartoons. And if you didn’t see a show on primetime, you may have to wait 20 years to see it again. And now, not only when you have a new show this week, and you know you can watch it whenever you get around to it, but you’re also, when you come on against other new shows this week, you’re also coming on against everything ever made.”
When you come on against other new shows this week, you’re also coming on against everything ever made.
Ted Sarandos, CEO, Netflix
“So I think it’s a very strange dynamic,” Sarandos continued. “The relationship people have with programming, all kinds of storytelling is so different. Think about a movie, right? Movies used to be huge. They were way bigger than us. They were totally in control. If the movie started at 8 o’clock, you better be in your seat at 8 o’clock, or you’re going to miss the beginning.
“And if they said something that you missed, you had to buy a ticket and come back in two hours before they’d say it again. Now, movies are smaller than us. We control when they stop and start. And it’s interesting to me how storytelling evolved over time when that relationship is so dramatically different than it used to be.”
Netflix is an agile organization
Ted’s comments reflect just how adaptive a company like Netflix is. From its onset, Netflix has had to evolve. From DVD shipping to licensing and production, Netflix is the definition of agile project management.
But there is also love for entertainment baked into the company.
“I think it plays a critical role in emotional and mental health,” says Sarandos. “My home life was pretty chaotic when I was young. I had no bedtime…television brought me a sense of order.”
Sarandos’ sentiment is key here. Looking for order in a chaotic home, Sarandos has a vested interest in improving the construct that shaped his early years. This may be why the “happy accident” (as he describes it) of releasing every episode of a new series at once has been such a hit. Where other streamers have stuck to the scheduled release strategy, Netflix customers know that they never have to plan around catching their favorite content with Sarandos.
This means they won’t have to “wait 20 years” to catch up on their favorite program if they miss an episode between taking on a second shift and tucking the kids in for bed. And whether you’re a fan of how Netflix releases new shows or not, this is something that should be celebrated; should it not?
At the end of the day, Netflix is more than a licensing and production company; it’s a convenience. Netflix is an organization that wants to make things better just as much as it wants to keep us entertained. Even the company’s efforts in 4K technology represent this type of solution-based thinking. But it’s Sarandos’ love for entertainment and drive to improve upon a concept rather than deliver more of the same that have made Netflix one of the world’s most competitive and agile companies today.
Which may be why so many people love Netflix, regardless of what the bears on Wall Street have to say.
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