Business Lessons from Reed Hastings (Netflix)


The way Netflix has evolved and has reached where it is today is incredible. A detailed 2 part article on business lessons from Reed Hastings.

3. “By 2011 we realized that many of the firms we were buying from were eventually going to want to run their own streaming service. We had no reliable supply. We had to go vertical since it was not going to be in their interest to sell to us over time.” 

Hastings is saying that Netflix understands the dangers associated with “wholesale transfer pricing.” Eugene Wei has written specifically about how the concept applies to Netflix:

“Netflix had a great advantage when First Sale Doctrine permitted them to buy DVDs at the same wholesale price as any retailer since it capped their costs. But in the TV/movie licensing world, the content owner can constantly adjust their price to squeeze almost every last drop of margin from the distributor as you can’t find perfect substitutes for the goods being offered. Ask TV networks if they make any money licensing NFL, NBA, and MLB games for broadcast. Hint: the answer is no. In the digital world, transfer pricing can be even more of a cruel mistress.”

The complete article


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What Netflix doesn’t want you to know about how its synopses are written


Have you ever written a synopsis of something you never watched or read?

From Haas’s description, the job sounded pretty straightforward. Why, I wondered during our conversation, would they want to hide that? Then Haas dropped a bomb: “As I’m sure you have noticed those don’t always actually match the content of the film very well which is because they did not pay us well enough for us to actually watch the movies,” Haas said. “So we would write the synopsis based on what we found online. That could be kind of challenging.” Bingo, I thought. That’s what Netflix doesn’t want us to know. No, not the possibility that they pay their writers poorly, but the possibility that SYNOPSES WRITERS DO NOT WATCH THE FILMS These synopses are based off other synopses, a feedback loop that would’ve given Baudrillard fits.

The complete article

Ann-Derrick Gaillot — The Outline

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Did 13 Reasons Why Spark a Suicide Contagion Effect?


There is a debate going on whether the Netflix series 13 Reasons Why should have depicted suicide the way it did.

The study, while troubling, is not entirely surprising. In May, I examined how 13 Reasons Why managed to break virtually every rule that exists when it comes to portraying suicide, featuring a graphic, prolonged scene of the main character’s death in the final episode and glamorizing it as a force for positive change in her community. One of the biggest concerns among psychologists and educators was that the show might spark a contagion effect, where increased coverage of suicide in the media leads to a related increase in suicide attempts. Netflix doesn’t release data regarding its viewing figures, but the wide discussion of the show on social media (it became the most-tweeted about show of 2017) implies that a significant number of people watched it, particularly teenagers. The rush to produce a follow-up season (currently being filmed and scheduled for a 2018 release) indicates the show has been a big hit for the streaming service.

The complete article

Sophie Gilbert — The Atlantic

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