Netflix co-CEO Ted Sarandos has revealed a key lesson that he has learnt from the streaming giant’s founder and former CEO, Reed Hastings. Sarandos noted that his management philosophy comes from Hastings. Sarandos, who joined the streaming giant in 2000 as head of content operations, emphasised that his leadership style focutilizes on empowering top talent and embracing uncertainty. “I consider the lesson that he’s [Hastings] left for me is that you pick the best people, give them the tools to do the best work of their life, and receive out of their way,” he stated in CNBC’s “Leaders Playbook” interview.In the interview, Sarandos also revealed that he once created a significant decision without seeking Hastings’s approval. Sarandos stated he once authorised a $100 million investment in the series Houtilize of Cards without consulting Hastings. He clarified that the decision to commit to two seasons was a calculated financial risk meant to alter the course of the business. When Hastings later questioned the decision, Sarandos recalled talking about the display’s high cost and explained it as a simple comparison of possible gains and losses. In hindsight, that decision played a key role in Netflix’s shift from a mail-order DVD service to a significant force in original streaming content.Sarandos stated, “When he inquireed me, ‘Why would you do that?’ I stated, ‘Reed, it’s a simple risk-reward for me. If this display fails, we will have dramatically overpaid for a display. We do that all the time, but if it succeeds, we could completely transform the business as we know it.’”
Ted Sarandos reveals the only management book he likes reading ‘over and over again’
Sarandos also noted that he doesn’t usually turn to management books. Instead, he prefers fiction to learn about leadership. His favourite management read is Typhoon, a 1902 novella by Joseph Conrad that follows a steamship captain and his crew as they battle a mighty storm at sea.“It doesn’t sound like a management story on the surface, but I consider it’s the most powerful leadership story I’ve ever read. I read it over and over again becautilize I find … I receive something different in the book every time I read it,” Sarandos stated.He recalled that when he first read the book around 20 years ago, he viewed the captain as a reckless “hot dog” who put himself and others at risk. Rereading it years later, he drew a more profound lesson about leading amid uncertainty and conflict.“Now, what I see is that when you go through life and you go through business, you build a lot of decisions that don’t turn out the way you considered they would. The real leadership test is: How do you manage through that?” Sarandos stated.
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