Netflix’s Ted Sarandos Interview with Anupama Chopra | Film Companion

Summary

In this insightful interview, Netflix co-CEO Ted Sarandos discusses the company's journey through a tumultuous year, including subscriber losses and a stock price plunge, to a remarkable recovery with record subscriber growth. He emphasizes the importance of diverse, high-quality content that caters to varying tastes and moods, highlighting Netflix's global hits like 'Stranger Things' and 'Wednesday.' Sarandos also addresses the streaming wars, the company's content strategy, and its commitment to local storytelling in markets like India, while sharing his vision for the future of streaming and the impact of Netflix on the entertainment industry.

Takeaways

• 🎬 Netflix's commitment to diverse content: The company aims to cater to a wide range of tastes and moods, ensuring there's something for everyone.
• 📉 A challenging year for Netflix: In 2022, Netflix experienced a loss of subscribers and a drop in stock prices, but ended the year with a significant gain, adding 7.5 million subscribers in December.
• 🌐 Global success through local focus: Netflix believes in creating content that is authentic to the local audience first, which then has the potential to become globally popular, as seen with 'Squid Game'.
• 🤝 Leadership change: In January 2023, co-founder Reed Hastings stepped down after two decades, and the company now has co-CEOs, including Greg Peters.
• 💡 Prioritizing consumer engagement: Netflix's top priority is engagement, focusing on how, when, and where people watch their content, as it is a leading indicator of success.
• 🏆 Oscars and global recognition: Netflix content, including Indian productions, is gaining international recognition, with nominations and discussions around films like 'RRR' and 'Gangubai'.
• 📊 Measuring success beyond subscriber numbers: Netflix emphasizes that success is not just about the number of subscribers but also about engagement, revenue, and profit.
• 🚀 Growth through resilience: The company has faced challenges but has shown resilience, learning from past experiences and adapting to changes in the market.
• 🌍 Expansion in India: Netflix India has grown significantly, producing a wide range of original content and gaining a better understanding of local tastes and storytelling.
• 💸 High content spending: Netflix's content budget is massive, even surpassing the defense budget of Sweden, reflecting the company's commitment to creating a wide variety of content.
• 📈 Future outlook: Despite the ups and downs, Netflix remains optimistic about the future of streaming, with a focus on profitability and meeting consumer demands for on-demand content.

Q & A

What is the main challenge that Netflix faces when it comes to content selection for its diverse audience?

The main challenge is catering to the vastly different tastes and moods of its audience, ensuring there is content for all preferences and situations.

How does Netflix's spending on content compare to the defense budget of Sweden?

Netflix spends more on content than the defense budget of Sweden, with its content budget being around 17 billion dollars.

What significant event happened on January 19th regarding Netflix's leadership?

On January 19th, Reed Hastings stepped down after two decades and handed over the reins to Co-CEO Greg Peters.

How did Netflix address the loss of subscribers and plummeting stock prices in 2022?

Netflix addressed these issues by focusing on reigniting growth through programming, starting with the release of popular series like 'Stranger Things' season four and the global phenomenon 'Wednesday'.

What are the three business metrics that Netflix considers most important for success in streaming?

The three business metrics are engagement (how people watch), revenue, and profit.

What is Netflix's stance on the current state of the streaming business and its profitability?

Netflix believes that the streaming business is great because it aligns with consumer desires and is moving away from traditional television and movie formats. Netflix is profitable in its streaming endeavors, unlike its major competitors.

How does Netflix approach content creation for a global audience?

Netflix aims to create content that is authentically local, which often ends up being successful globally, as seen with 'Squid Game' from Korea.

What is Netflix's strategy for content breadth and how has it evolved over time?

Netflix's strategy involves producing content across every genre and format, expanding from prestige dramas to a wide range of television and movie genres to cater to diverse tastes.

How has Netflix India's approach to content creation and audience engagement evolved?

Netflix India has grown by producing a wide range of original projects, understanding local tastes, and increasing engagement through shows like 'Trial by Fire' and 'The Romantics'.

What is the significance of Netflix's content budget and how does it plan to allocate it moving forward?

Netflix's content budget is significant, allowing for broad investment in content that people love. As markets grow, like India, they get a larger piece of the content budget to cater to local tastes.

How does Netflix view the importance of sports content in its platform, especially considering its historical significance in pay and broadcast television?

While sports have been important for traditional television, Netflix has proven it can build a large audience and business without relying on sports as a loss leader.

What was the impact of Netflix's 'Drive to Survive' show on Formula One's global audience?

The show significantly increased engagement with Formula One, demonstrating Netflix's ability to enhance viewer interest in sports through compelling storytelling.

How did Netflix respond to the challenges and negative press during its subscriber loss and stock price drop?

Netflix responded by focusing on resilience, not taking negative press too seriously, and continuing to prioritize its members and product quality.

What is Netflix's view on the future of streaming and its role in the entertainment industry?

Netflix sees streaming as the future of entertainment, with people increasingly moving away from traditional formats and towards on-demand streaming services.

Outlines

00:00

😀 Netflix's Content Strategy and Industry Impact

The paragraph discusses the diverse tastes in content viewing, emphasizing the importance of catering to various moods and preferences. It highlights Netflix's significant investment in content, surpassing even the defense budget of Sweden. The conversation delves into the company's challenges in 2022, including a loss of subscribers and stock price fluctuations, but also its recovery with successful programming like 'Stranger Things' and 'Wednesday'. The speaker underscores the importance of engagement, revenue, and profit as key business metrics, and addresses the 'streaming wars', stating Netflix's focus on consumer satisfaction as the path to growth.

05:00

🌟 Expansion of Netflix's Content and Global Reach

This paragraph focuses on Netflix's evolution from producing a few prestige dramas to offering a wide range of programming across all genres. The speaker mentions the company's aspiration to become a part of various entertainment channels, reflecting its commitment to diverse content. The discussion includes Netflix's strategy in India, acknowledging the initial hit-and-miss approach but celebrating the improvements and successes like 'Trial by Fire'. The speaker also talks about the importance of local teams understanding the culture and consumer tastes, and the impact of Netflix on global cinema, as seen with Indian films like 'RRR' and 'Gangubai'.

10:01

🏆 Netflix's Commitment to Authentic Local Content

The speaker discusses the importance of authenticity in content creation, using the global success of 'Squid Game' as an example. They emphasize that successful global shows are those that are first loved locally. The paragraph also touches on the mystery of streaming numbers and how engagement metrics are more important than subscription numbers for measuring success. The speaker addresses the challenges of creating content in India, given its rich cinema culture, and how Netflix's approach has evolved to better suit local tastes, leading to a stronger content slate and increased engagement.

15:02

📈 Netflix's Resilience and Growth Amidst Challenges

This paragraph details Netflix's resilience in the face of challenges, such as the 1.2 million subscriber loss and stock price drop. The speaker reflects on the company's history of overcoming adversities, including competition from Walmart and Blockbuster. They highlight the importance of not panicking and focusing on creating a better product. The speaker also discusses the future of streaming, predicting it will surpass cable and broadcast as the dominant way to watch television, and expresses confidence in Netflix's position in the industry.

20:02

🌍 Netflix's Global Influence and Future Aspirations

The final paragraph celebrates Netflix's global influence on movies and television, with the speaker acknowledging the company's unique position in the industry. They discuss the importance of making content that resonates with local audiences, which can then be enjoyed worldwide. The speaker shares their pride in Netflix India's achievements and their desire for the team to continue producing high-quality programming. They also express their personal philosophy on happiness and work-life balance, and share their admiration for the resilience shown by the people of Ukraine.

Keywords

💡Content

Content refers to the various forms of media and entertainment that Netflix provides to its subscribers. It is central to the company's business model and is a significant factor in subscriber satisfaction and retention. In the script, Ted Sarandos, Netflix's co-CEO, discusses the importance of having a diverse range of content to cater to the different tastes and moods of their audience, highlighting Netflix's investment in original productions and global phenomena like 'Stranger Things' and 'Wednesday'.

💡Subscribers

Subscribers are the individuals who pay for and use Netflix's services. The script mentions a period of subscriber loss for Netflix, which was a significant concern for the company. However, by the end of the year, they managed to add 7.5 million subscribers, exceeding analyst forecasts. This metric is crucial for measuring the success and growth of the streaming service.

💡Engagement

Engagement, in the context of the video, refers to how viewers interact with Netflix's content—how much they watch, where, and when. It is one of the three key business metrics Sarandos identifies, alongside revenue and profit. High engagement indicates that viewers are spending their time with Netflix, which is a measure of success for the platform.

💡Streaming

Streaming is the delivery of content over the internet in a continuous flow, allowing viewers to watch movies and TV shows on-demand without downloading. The script discusses the shift towards streaming as the preferred method of content consumption, with Netflix at the forefront of this transition, moving away from traditional linear television and transactional movie models.

💡Original Production

Original Production refers to content that is created and produced by Netflix itself, rather than licensed from other studios. The script mentions Netflix's strategy of investing in original content early on, which has paid off and contributed to the platform's growth and differentiation in the market.

💡Resilience

Resilience is the ability to recover quickly from difficulties. In the script, Sarandos talks about the resilience of Netflix's team, which helped the company navigate through challenges such as the COVID-19 pandemic and the shutdown of operations in Russia, leading to a successful recovery in the second half of the year.

💡Global Phenomena

Global Phenomena refers to content that achieves widespread popularity across the world. The script cites 'Stranger Things' and 'Wednesday' as examples of Netflix shows that have become global hits, demonstrating the platform's ability to create content that resonates with audiences worldwide.

💡Ad Tier

Ad Tier refers to a subscription plan that includes advertisements as part of the service. The script mentions that Netflix is rolling out an ad-supported tier as a way to cater to a broader audience with different price points and preferences, while still maintaining the quality of their content offering.

💡Cultural Understanding

Cultural Understanding is the knowledge and comprehension of a particular culture's customs, values, and preferences. The script emphasizes the importance of Netflix's team in India having a deep understanding of local culture and storytelling, which has helped them produce content that resonates with the local audience and contributes to Netflix's success in the region.

💡Oscar Nominations

Oscar Nominations are recognitions given by the Academy of Motion Picture Arts and Sciences for outstanding achievements in the film industry. The script mentions Netflix's Indian content receiving Oscar nominations, which is a testament to the quality and global appeal of their programming and their ability to promote diverse stories to a worldwide audience.

💡Business Model

A Business Model describes the rationale of how an organization creates, delivers, and captures value. In the script, Sarandos discusses Netflix's business model, emphasizing the importance of focusing on consumer satisfaction and the 'juice worth the squeeze' philosophy, which means evaluating whether the potential success of a project justifies the effort and challenges involved.

Highlights

The importance of diverse content to cater to different tastes and moods, as emphasized by the speaker's personal experience with his wife.

Netflix's significant spending on content, surpassing the defense budget of Sweden, highlighting the company's commitment to its streaming service.

The leadership transition at Netflix with co-CEO Greg Peters taking over from Reed Hastings, marking a new era for the company.

The challenges faced by Netflix in 2022, including subscriber losses and stock price fluctuations, and the company's subsequent recovery strategy.

The strategic shutdown of Netflix's operations in Russia and its impact on the company's subscriber base.

The success of Netflix's programming strategy, exemplified by hits like 'Stranger Things' and 'Wednesday', which contributed to the company's growth.

The speaker's top priority for Netflix: focusing on the streaming business and addressing skepticism about its viability.

Three key business metrics for success in streaming: engagement, revenue, and profit, as outlined by the speaker.

The 'chaos era' of streaming wars and the financial struggles of platforms other than Netflix, as reported in Time Magazine.

Netflix's content strategy and its impact on the entertainment industry, including the company's role in the 'arms race' of original production.

The speaker's vision for Netflix to encompass a variety of programming styles, similar to HBO, FX, Comedy Central, and the Food Network.

The challenges and learning curve of Netflix India, and the company's commitment to producing local content that resonates with Indian audiences.

The success of Netflix India's original productions, such as 'Trial by Fire', and the growth of the team's understanding of local taste.

The global impact of Indian films like 'RRR' and 'Gangubai' on Netflix, and their role in driving cultural conversations.

The importance of authenticity in global content, as demonstrated by the success of 'Squid Game' and its Korean roots.

The mysterious nature of streaming numbers and the significance of engagement metrics for measuring success, as opposed to raw subscription numbers.

The speaker's perspective on the role of sports in building a mass audience for Netflix, and the company's strategy without relying on sports as a loss leader.

The company's resilience and recovery from challenges, including the stock price drop and industry skepticism, by focusing on consumer satisfaction.

The speaker's personal philosophy on work-life balance and the importance of doing something you love, as well as his admiration for the resilience of the people of Ukraine.

The speaker's approach to decision-making in business, encapsulated by the question 'Is the juice worth the squeeze?', which evaluates the effort versus reward of a venture.

Transcripts

my wife and I never agree what to watch

and we love each other enough to be

married and live in the same home and so

people have very different tastes and

different moods and you have to have

something for all those moods Netflix

spends more on content than the defense

budget of Sweden

it's actually more you're correct

[Music]

Dad it is so wonderful to see you again

you two in person in person it's been

too long and oh my God God what a year

it's been for you guys it has been a

busy year yes it's only February by the

way it is exactly and but but even the

last 12 months Netflix so much has

happened I mean on January 19th read

Hastings after two decades step down and

you know handed over the reins formally

to you and co-ceo Greg Peters uh 2022

was really difficult in terms of at one

point you had a loss of subscribers the

stock prices plummet and then in

December

7.5 million subscribers are added which

is actually beyond the analyst forecasts

yeah it's been a roller coaster ride

yeah the first half of the year was

pretty rough last year I got up to a

slow start uh so um recovery from covid

and all these things made things quite

uncertain remember we shut down our

operation in Russia where we had a

million subscribers drop so there was a

whole lot of things we were navigating

the first part of the year and then the

second half of the year

um we really you know got got moving uh

and I think it really speaks to the

company that we built which was filled

with people who are incredibly smart and

resilient and we really got singularly

focused on reigniting growth programming

starting probably with stranger things

season four and then rolling into a big

Global phenomena like Wednesday and

back-to-back hits from all of our

content around the world it's just been

just the windows at our back for sure

what's your top priority right now the

streaming business in the last six

months people are openly questioning

whether or not this is a good business

well of course it's a great business

because this is what consumers want uh

the world is moving to streaming and On

Demand uh and away from linear

television away from Paid Television and

away from transactional movies and the

people who do this well which we've been

solely focused on for 25 years as a

company uh to be very critical in this

space and in terms of being profitable

look at what is success streaming I

really think there are three business

metrics only three the business can be

portrayed very complex or very simple I

think it's quite simple number one is

engagement

do people watch how they watch where

they watch

and when it comes to engagement

um you know we're clearly leading that

around the world Netflix is a profit is

company is profitable globally in our

streaming Endeavors which our major

competitors are not so if you look at

um sub counts and all those kind of

things those are sub metrics the real

metrics of the business are engagement

revenue and profit

okay I'm gonna come back to that but

before I have to ask you

um so speaking of the streaming and and

non-profit and profit I just read a

piece in Time Magazine which said that

streaming Wars are now in their chaos

era okay and they said it said that any

platform that's not named Netflix is

losing money uh Disney is laying off

thousands of people uh and one of the

one of the lines in the piece was that

the content arms race kicked off by

Netflix hasn't paid off uh what's your

take give us a sense of what's happening

what are these streaming Wars

um well it depends on who paid it out

for uh yes we we have a we did

definitely ignite what I think is the

largest explosion of original production

maybe in the history of the medium in

the new generation of uh entertainers

people have very diverse taste and they

have and they expect what they to get

what they want and you don't always feel

like the same thing I always joke about

that my wife and I never agree what to

watch and we love each other enough to

be married and live in the same home and

so people have very different tastes and

different moods and you have to have

something for all those moods so we he

started investing in a lot of breadth of

content early on and so for our early

investment has paid off and for us what

they talk about being the only company

that isn't called Netflix uh they're all

losing money we're why we're not we

never took our p l to zero to grow this

business we've grew it soundly uh by

really focusing on consumers and

consumer first and we didn't uh so I

think we as long as you're in the happy

consumer business uh you can grow

infinitely as long as you keep those

members happy

Ted you talked about breath of content

but you know when House of Cards first

premiered in 2013 uh you had said that

we want to become HBO before HBO can

become us but more recently you've said

that Netflix is going to be part HBO

part FX part Comedy Central part the

Food Network uh is this a change of tax

no it's a expansion of it so yes we

still do that type of programming that

we talked about back in the house of

cards days which believe it or not is is

10 years ago this month uh we launched

House of Cards we only were doing a

handful of kind of prestige dramas in

the early days and today we produce

across every genre of Television

programming every version of movies

every genre of movies

um so when you say that we want to when

I said that about HBO I was trying to

get into the shorthand which is I think

that they were at the time the kind of

north star of high quality programming

and we had not yet made anything

so I said when we get into this I want

to be

that great at making the programming

much like India it is I'm going to say

right uh Tamal uh Tommy Tommy right

sorry right uh where it's a little bit

of everything and because I think that

is what people want right I think

sometimes you want a drama sometimes you

want a comedy or sometimes with this

incredible history uh and Rich history

of Indian Cinema sometimes you want it

all in the same movie uh and we want to

be able to provide that so so

Bella said we want to replace all

television well we want to be your

choice we want to make your favorite

show your favorite film and there's a

tremendous value in being very good at

figuring out consumer taste and helping

them navigate through the world of

enormous choices

let's talk about Netflix India

I know that India has always been a

priority market for Netflix yes but the

general perception seems to be that it's

been a bit of a hit and miss for the

service here and I've asked you about

this before and you had said that look

this is a trial and error phase

to match audiences with stories is very

difficult it's very fluid and we're

committed to getting better and better

now in January Netflix India had trial

by fire which is a superb piece of

Storytelling okay do you think the team

is already better and better I think

they're better every day and I do think

from the you say it's hit and miss I

think when you enter into a new market

sometimes it's miss miss miss hit it and

I think that's you know like and and

what I figured out early on when we

started launching in various countries

is you didn't learn much in one country

that was helpful in the next country you

have to be there you have to be on the

ground on and you have to understand

consumer taste you have to understand

the culture you have to understand the

his the industry you have to understand

creators in that country what are the

challenges to getting movies made and

series made and in the case of India

remember I think India's got this

beautiful Rich Cinema culture and not

that much around television at that time

when we first got here so sacred games

was our kind of early attempt to say

well what if you took the principles of

Cinema and Infuse them into television

and with the with the Indian audiences

love that and you know that was our

first show out of the gate and now you

look going forward

we've now produced a hundred original

projects in India last year alone 28 and

then to your what you're saying earlier

just you know we're only in February and

we've already released

trial by fire uh the romantics The

Romantics I was just going to talk about

this great documentary we just did in

class the Slate of films and series that

we have coming up for the next year are

strong longer than we've ever had so

this idea of really getting into the

grid into the Rhythm and the groove of

local taste and local desire I think

we're better at that than we ever were

our team who runs India run it from

India a lot of I think uh companies who

try to run India out of California get

frustrated early on because they just

don't learn anything and here our team

really does understand the local culture

and the local storytellers and they

themselves are part of the local

audience and of course last year the big

success stories were gangubayan rrr for

Netflix

incredible I mean honestly that I've

never seen that much Euphoria around an

Indian film like there was for RR being

in Los Angeles during uh award season

this year RR and gangubai were in the

discussion deeply everyone was talking

about this there are 180 movies to watch

on the voting site and two that got

watched a lot were these two movies most

and then they get found out because they

saw them on Netflix so those movies kind

of get pushed into the culture on

Netflix and then people started talking

about hey did you see this movie did you

see this movie and RR for many people

who I know may have been the first

Indian movie they ever saw and for them

it was such a wild Journey that they

want more they're going to want more the

way that squid game did that for Korean

content around the world again on

Netflix so it's not that you uh it's

impossible to have a global head it's

very rare and you need to have a

distribution platform like Netflix and

you need to have a system of choosing

like Netflix to help surface things that

you may not know you're going to like

but we do Elephant Whisperer which is

actually nominated for the Academy

Awards on Netflix for short documentary

and it's our second nomination for a

short documentary both films from India

period end of sentence which won the

Oscar a few years ago and then elephant

Whispers which is nominated this year

wonderful

content break out globally

um make it work locally

there there's no you cannot reverse

engineer a global show uh the things

that work globally are the things that

are the most authentic local

squid game from Korea was every bit

Korean television and Korean and a

hybrid of Korean television and Korean

Cinema

and it worked first and foremost in

Korea and then blew up around the world

and I think that's true of of all of our

shows that have worked globally is that

they first and foremost were loved by

the local audience

the one of the most mysterious things

about the streaming world is of course

numbers

so

subscription numbers that do the rounds

and

if you look at those then yes Netflix is

lagging but if you look at

um third-party apps you know if you look

at app Annie or com score numbers in

fact Netflix leads because like you were

saying engagement is so high it's 74 for

Netflix whereas the rest of the

platforms are declining so

I know you already addressed this in a

little bit but is that then your measure

of success uh and how does Netflix India

rack up it's absolutely the measure of

success it has to start with engagement

do people care enough to spend their

viewing time with you do they are they

spending their screen time with Netflix

and so that's why that engagement metric

is so fine you know

that you can't really build a mass

platform without sport now you've said

that Netflix is not anti-sport it's Pro

profit right and and you're confident

that you will build you'll take this to

twice its size without sport but you

know here it's like if you don't have

Cricket you can't do it so what's your

response uh well we've built

it has it has been true historically

that Sports were very important for pay

television for broadcast television and

I think for the most part it was a very

large loss leader so the big question

was can you build a big audience or a

Big Business Without a lost leader of

sports

um and for us we have proven that we can

and we have and uh so so I do think that

we can and I do think

the way people engage in sports isn't

all just about watching the game itself

look at the impact that we've had on

Formula One around the world with our

show drive to survive in which we just

launched new shows in that take place in

the world of professional tennis in the

world of professional golf

you saw the last dance and the impact

that it had on both on Michael Jordan

and on the NBA around the world we saw

bigger numbers uh viewing numbers on

Netflix internationally than ESPN saw

domestically on Last Dance So Tech to

Scott gallower said that Netflix spends

more on content than the defense budget

of Sweden

it's actually more you spend more than

the defense budget of Sweden it's it's

at 17 billion dollars as you say I don't

know the defense budget is Sweden but I

know our content budget and it is that

you're correct so how much of this Ted

is for

and what is the brief in terms of

content because as you give cheaper

options as you have an ad supporter

you're going to have to sort of

make the content more mass rather than

premium uh so what's the brief the first

people who signed up for Netflix are

were probably very Dem western-centric

in their taste uh early adopters to

technology had wired Broadband at home

and a big screen TV and all that and as

you get more and more mass you get more

and more uh mix of folks so you need to

mix up price points so over the years

we've added multiple price points

including we're rolling out you know an

ad tier around the world

um and the programming too then begins a

little more in the mainstream you don't

abandon the other program you add it's

additive this is all additive and then

as people move up and down and they're

in the way that they look at their

programming and The Taste sometimes you

find yourself watching something that

you've never seen before or thought you

would like and you love it we have a um

an unscripted show from Korea right now

called physical 100 that people are

watching all over the world and this is

again we've only been making original

content in Korea for a few years and

working across all forms of Storytelling

the way that Indian matchmaker is a very

big hit in the United States that you

can make all those content work so when

I tell you that we're growing engagement

and uh and revenue in India then the the

next part of that is that India gets a

little bit bigger piece of the content

budget uh and and so you basically are

trying to constantly get just ahead of

or just behind the growth in a market

and figure out what's working and keep

investing would this sort of content

brief be

again be all things to all people yeah

definitely so we want to invest broadly

in things that people love and so and

again what and the things that you may

be in the mood for so that could be you

know a very soapy drama or it could be

you know a big action film or more of a

prestigious drama

dead last deal when the 1.2 million

subscriber loss was reported and the

stock price fell of there was and this

was actually reported in many sort of

platforms and newspapers there was sort

of almost audible Glee in Hollywood

right to to see a giant tumble also

because you appended every rule that was

and that existed till then at that

pointed did you have a sort of a Dark

Night of the Soul did you were you

afraid and how did you get past it like

I was saying earlier the company was

really built to be resilient so uh and I

also I try to have great perspective so

people say a lot of very nice things

about Netflix you don't take them too

seriously because when they say mean

things about Netflix you don't take them

too seriously either and I wouldn't say

that we really stumbled as much as we

stripped and I do think so it's a matter

of you know Gathering your things and

getting back to work and we've done it

for the beginning when we started

Netflix when we were just mailing DVDs

around the United States we were at it

we were leading the market and then

Walmart the world's biggest retailer and

Blockbuster at that time the large the

world's largest Entertainment Company

both came at our business and undercut

our price dramatically and tried to run

at us and we did we we sunk a little bit

it and we came back and we came back by

making a better product and keeping our

members and our customers first and

foremost didn't worry about the

competition very much

um and then when we launched into our

streaming business we had a little

bouncy middle there we were trying to

figure out between DVD and streaming

which was going to be our future and how

we which date you'd want to pull the

plug on one or the other and we did this

thing called quickster that uh the

members hated everywhere uh and a bunch

of people quit and they you know and our

stock went down then actually our stock

dropped much more dramatically than it

did recently and came back within about

18 months so we've been through you know

success stories are very rarely straight

up and to the right we did break a lot

of rules when we got into the business

but I'll let you in a secret it's not

because we were trying to be Rebels we

didn't know the rules

so it helped us a lot

you don't panic ever Ted Panic yeah do

you ever get scared no I mean it's you

always want to be a little scared you

always want a little um very healthy

level of nervousness uh but not panic I

think here's what I take a lot of

confidence in we've been we have we have

been in this business for 25 years we

have one business this is all we do so

we have to be great at it um streaming

is the future

um people are going to increasingly move

away from linear television away from

transactional movies towards streaming

in fact in the U.S where we're very

penetrated and streaming is quite mature

um streaming grew 46 in December and and

by next year it's forecast to surpass

both cable and broadcast to be the

dominant way people watch television in

the United States and I believe that's

going to be true around the world I read

an article today in the New York Times

in which Barry Diller said this about

you and I quote exactly three he's had

more singular influence on movies and

television shows than anyone ever had he

has denuded the power of the old movie

companies that had held for almost 100

years they're now irrelevant to setting

the play and rules of the day if there

is still a Hollywood he is it

[Laughter]

there will be news to my wife and kids

that

um look I think that the the version of

Hollywood that Barry talks about Barry

is very generous by the way when he says

that I think the reason why it's

possible that I've had that kind of

influence just because Netflix has had

that kind of influence and that

streaming is such a popular way of

consuming so in that way very few places

and few companies have done movies and

television uh together in the same place

under the same scale at the scale that

we do and in as many countries as we do

and as many languages as we do and it

really has changed the way people watch

this is I think a way to kind of make

content make movies and shows anywhere

in the world and if you make them good

enough they'll be watched all over the

world that's never been done before and

I just happen to be the guy who's you

know overseeing a lot of very smart

people doing it

what are you proudest of Ted of what

Netflix India has achieved and what do

you want to see happen in the next two

years

uh proudest of of Netflix India has been

that ability to just keep going you know

yes we started off pretty slow we're

trying to figure out a lot to figure out

uh but just the ability to keep going

and making great programming um if you

want to see we just released this you

mentioned them Romantics I for me the I

want to make this mandatory viewing in

the company well I want every one of our

employees all 10 000 people to watch all

episodes of this documentary to learn

about this incredible Rich history of

Cinema in India the storytelling is

great it tells you so much about the

culture here and the business culture

and the storytelling culture I learned

more in that four hours than I have

learned in the last 20 years trying to

figure out India uh for for movies and

television shows and I'm super proud of

the fact that we're in the discussion

and I think even this year like I said

with Oscar nominees from India and are

being able to drive audiences to films

that they'd never seen before from Place

new places in the world it's a lot to be

proud of yeah

I'm gonna end it with

what is your idea of perfect happiness

perfect happiness

oh that's a in the in Life or uh in life

I have figured out that there is no life

work balance so do something you love

and I do that I get to do the thing I

love

which living person do you most admire

it's very um that's a long list

it's very hard not to um

to look at the resilience of

um not just uh president zielinski but

the people of the Ukraine and and what

they've been through and there was in

the strong resilience of those people

it's amazing

on What occasion do you lie Ted oh

hardly ever

it's the problem is I can't remember

things very well so if you lie you have

to have a very good memory to lie so

[Laughter]

my motto is is this is a business model

I ask the teams all the time is the

juice worth the squeeze so is this going

to be so big that you'd be willing to

put up with almost anything to make it

work uh so when someone wants to do

something that's really hard or really

controversial really difficult I say is

the juice worth the squeeze nice Dad

thank you so much it's always such a

pleasure to speak with you thank you

[Music]