Netflix co-CEO Greg Peters on the streamer's shifting culture and where ads, AI, and games fit in
Jun 24, 2024
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Greg Peters, Netflix co-CEO, discusses the company's expanding ad tier, updates to the culture memo, and growth into advertising and gaming. The podcast explores Netflix's unique co-CEO model, focus on personalization in streaming and gaming, challenges in decision-making, and strategies for ads and tech-creative balance.
Netflix is expanding into gaming and advertising to engage global audiences effectively.
The collaborative co-CEO model at Netflix combines content and tech expertise for efficient decision-making.
Netflix's refined culture memo emphasizes individual accountability and corporate goals to foster excellence.
Deep dives
Netflix's Evolution into an Entertainment Company
Netflix aims to be a global entertainment company that combines creative and tech capabilities. The company differentiates itself by merging creative content with strong tech expertise, offering a unique entertainment experience. With over 40 million subscribers, Netflix's expansion into gaming and advertising reflects its evolving strategies to engage audiences globally.
Two CEOs: the Power of Netflix's Leadership Structure
Netflix's co-CEO model, with Greg Peters and Ted Sarandos, emphasizes the marriage of content and technology. The collaborative leadership structure focuses on strong centers of excellence in creative content and product/tech, enabling efficient decision-making. The dynamic allows each CEO to lead in their respective areas while ensuring strategic alignment for the company.
Netflix's Cultural Evolution and Clarity
Netflix's culture memo undergoes refinement to articulate the company's values effectively. The transition from a harsh, direct tone to a more streamlined and corporate approach aims to accurately represent Netflix's working environment. Balancing freedom and responsibility has been a key focus, emphasizing individual accountability and collective corporate goals to foster a culture of excellence.
Fostering Employee Judgment and Decision-Making Flexibility
Hiring employees with good judgment is prioritized to navigate nuanced situations, like programming for diverse audiences. Fostered by values such as being 'loosely coupled, highly aligned,' employees are empowered to autonomously make strategic decisions guided by core principles and strategic bets, strengthening alignment without solely relying on tribal knowledge.
Innovative Approach to Advertising and Competitive Positioning
Netflix's advertising strategy blends TV and digital prowess to offer premium, creative placements. By providing targeted and performance-driven ad solutions in a unique space, Netflix aims to attract advertisers seeking impactful campaigns. Despite challenges like conversion limitations on TV screens, Netflix's shift towards fewer but higher-value ad slots reflects a move towards improved user experience and increased advertiser value.
Today, I’m talking with Greg Peters, the co-CEO of Netflix. I caught up with Greg while he was at the Cannes Lions festival in France, which is basically the world’s biggest gathering of advertisers and marketers. It’s an increasingly important place for Greg to be, as Netflix’s new ad tier has nearly doubled in six months to more than 40 million subscribers and feels increasingly pivotal to the future of the company.
On top of that, Netflix is updating its famous culture memo, and I wanted to chat with Greg about the changes he’s making to that document, and how he’s thinking about maintaining that culture as Netflix grows into things like advertising and gaming.