NETFLIX

Company: Netflix, Inc.

CEO: Reed Hastings
Year founded: 1997
Headquarter: Los Gatos, USA
Type: Public
Ticker Symbol: NFLX (NASDAQ)

Products & Services: Netflix Official Website | Monthly Subscription Plans |

Video Recommendation-Algorithm System Offerings Streaming Options
Domestic (featured tool) | International Streaming Options and Features
Competitors: Amazon Prime Video | HULU | YouTube | Directv | Sony
PlayStation’s Vue | HBO | Sling TV | HotStar | Disney+ | Apple TV+
-Last updated: Oct 10, 2020-

I. Introduction:

1. Development History:
- 1997: Reed Hastings and Marc Randolph had an idea to rent DVDs by mail.
They tested the concept by mailing themselves a DVD. The DVD arrived intact,
and the idea for Netflix was born.
- 1998: Netflix.com, the first DVD rental and sales site, is launched.
- 1999: The Netflix subscription service debuts, offering members unlimited
DVD rentals without due dates, late fees, or monthly rental limits.
- 2002: Netflix makes its initial public offering (IPO), at a selling price of $1 a
share under the NASDAQ ticker NFLX.
- 2003: Netflix is issued a patent by the U.S. Patent & Trademark Office to
cover its subscription rental services as membership surpasses 1 million.
- 2005: The Profiles feature launches, allowing members to create different lists
for different users and/or different moods.
- 2007: Streaming is introduced, allowing members to instantly watch series and
films.
- 2008: Netflix partners with consumer electronics brands to allow streaming on
Xbox 360, Blu-ray players and TV set-top boxes.
- 2009: The Netflix Culture Deck is published.
- 2010: Netflix arrives in Canada and streaming launches on mobile devices.
The first dedicated kids experience debuts on streaming.
- 2011: Netflix launches in Latin America and the Caribbean. The first Netflix
button appears on remote controls.
- 2012: Membership reaches 25 million members, and expands into the United
Kingdom, Ireland and the Nordic Countries.
- 2014: Netflix begins streaming in 4K Ultra HD.
- 2016: Netflix expands to 130 new countries, bringing the service to members
in more than 190 countries and 21 languages around the world. The Download
feature is added for offline and on-the-go viewing.
- 2017: Membership hits 100 million members globally. Netflix wins its first
Academy Award, for 'The White Helmets.'
- 2018: Netflix is the most-nominated studio at the Emmys, winning 23 for
series. PIN protection is rolled out as part of several parental control
enhancements.
- 2019: Netflix wins four Academy Awards. New production hubs open in
London, Madrid, New York and Toronto. 'Bandersnatch' wins the first major
Emmy for an interactive title.
- 2020: Top 10 lists debut, allowing members to see what’s popular for the first
time. Netflix is the most-nominated studio at the Academy Awards and Emmys.
The Hardship Fund launches to aid creative community workers impacted by
COVID-19, and two percent of our cash holdings move to financial institutions
supporting Black communities.

2. Business area:
Netflix, Inc. happens to be one of the most successful entertainment
mass-media-companies of all times. Netflix, Inc. originally began its inception
in 1998 by providing services to customers through means of mailing out
physical copies of movies, shows, video games and other forms of media
through standard mailing systems.

Through its successful startup and the rapid changes that technology introduced
over time, Netflix converted its business model. They went from physical copies
handouts to allowing customers streaming their favorite contents from the
comfort of their own convenience.
Today, the platform has advanced to streaming technologies that have elevated
and improved Netflix’s overall business structure and revenue. The platform
provides its viewers the ability to stream and watch a variety of TV shows,
movies, documentaries and much more, through means of using a software
application.

Since Netflix converted to streaming, it is the world’s ninth-largest internet

company by revenue, ranging its presence at a global scale. The following is a
compilation that comprises specifications of Netflix’s business canvas model
and its core operations.

3. Number of Staff: 7100 (Oct 10, 2020)

4. Business Performance/Business Findings:

- Netflix has over 193 million members from over 190 countries (as of
July 2020)
● Funding:
● Total Sales revenue:
● Annual revenue:
● Total Cost:
● Profit before Tax:
● Tax:
● Profit after Tax:

=>>>>> Income Statement đây: LINK

II/ Recruitment and Compensation: Khoa Lê

A/ Netflix Recruitment: Highlight là bỏ vô slide

“Netflix, the streaming giant that revolutionized the entertainment business, has
a reputation for its high-pressure workplace. Employees are told to see
themselves as part of a “pro sports team” -- not a family.”

Netflix has a fairly unique interviewing process that is unlike most major tech
companies.
1/ Recruiting Requirement

+ Hiring for teams: They hire for the company first, then match new hires
to specific teams using various criteria, such as their background and skill
set.

+ Years of experience: Before applying to Netflix, it should be noted that

they generally don’t hire new grads or interns. They tend to hire those
who have 3+ years of experience. This isn’t to say that they don’t hire
new grads, but it isn’t the norm.

+ Culture fit: This is without a doubt the most important aspect of your
interview: 40-50 percent of the Netflix interview is based on culture fit
questions. They have an entire document dedicated to their culture and
values. If you really want a job at Netflix, then you must read this
document carefully. As an exercise, it’s suggested that you think carefully
about each value and how it relates to your personal and professional
experience.

Superior technical proficiency is less likely to net you the job than the
right personality. The company famously eschews “brilliant jerks” -- high
performers with poor interpersonal skills.

+ Hiring decision: Finally, unanimity is required to make a hiring decision:

if one of your interviewers dislikes you, your chances of being hired fall
dramatically. Unlike at Google, Facebook, and LinkedIn, however the
hiring process at Netflix is managed entirely by the hiring manager.

The hiring manager oversees all aspects of recruiting, including

• Coming up with evaluation criteria based on staffing needs

• Partnering with recruiters to source

• Screening and evaluating candidates

• Onboarding new hires.

Summary of Netflix recruiting requirement: Hình bên dưới (nhớ cắt ra
nha)
2/ The interview process at Netflix
Gồm 4 round: Pre-screen with a recruiter (30 minutes) → Phone screen
with a hiring manager (45-60 minutes) ---> Onsite interviews (7 rounds)
---> Job Offer

Round 1: Pre-screen with a recruiter (30 minutes)

Before the phone call, the recruiter will send you a link to the Netflix core
values page, a remastered version of the 2009 culture deck by CEO Reed
Hastings. Familiarize yourself with Netflix’s unique brand of radical candor,
including the following:
• All internal documents are shared broadly and systematically for any
employee to view and comment on. Quarterly business reviews are made
available to all employees right after each quarterly earnings announcement.
• Netflix managers don’t offer formal evaluations, opting for informal
feedback sessions instead. This may involve multiple employees praising and/or
critiquing an employee.
• Flexible work hours, unlimited vacation, and lax spending controls
require you to exercise your best judgment.

The recruiter will ask questions about Netflix’s culture, your past projects, and
basic technical knowledge to test your domain expertise. Be prepared for blunt
behavioral questions, such as: What don’t you like about Netflix’s culture?

Round 2: Phone screen with a hiring manager (45-60 minutes)

The second phone screen involves open-ended technical questions and questions
specific to the technologies and/or programming languages you’re familiar with.
If you’re interviewing for the engineering team, you’ll be asked to complete a
coding challenge using a shared editor.
Alternatively, you’ll receive a take-home project, which takes 6-8 hours to
complete. An example is being asked to build a working microservice to
calculate and edit the pricing of subscriptions based on rules they give you.
You’ll also be required to provide a complete system design document.

Round 3: Onsite interviews (7 rounds)

Netflix’s typical onsite interview consists of two parts.
+ The first part comprises four technical interviews (some 1:1, others 2:1),
followed by a human resources interview.
● Technical candidates can expect to ⇒ do whiteboard challenges
and Leetcode problems, and answer questions about data structures
and algorithms.
● Other types of candidates: will be asked about a situation, for
ex, marketing manager candidate was asked: How many cans
of paint would you need to paint one wing of a 747?
⇒ Remember, there are no right answers; hiring managers are simply interested
in your thought process.
Sample technical interview questions at Netflix

1. How would you test the latest iPhone's new antenna system? —
Senior QA engineer candidate

2. How would you determine if the price of a Netflix subscription

is truly the deciding factor for a consumer? — Market research
analyst candidate

3. Explain how the process works from the time you enter
http://www.Netflix.com into your browser and the data is
rendered on screen. — Software engineering manager candidate

+ The second half of the onsite interview is less technical. You’ll speak
with two directors. Be prepared to discuss culture fit at every stage of the
interview process. The interview experience is intense and Netflix does
not waste any time: if you perform poorly at any stage, the interview
usually ends early.
Sample culture-focused questions at Netflix

1. You have a great idea for how to improve our product, but
you’re worried about stepping on someone else’s toes. What do
you do?

2. It’s your first day on the job and you have a few hours to kill
before orientation. What would you do with that time?
 3. Tell me about a disagreement you’ve had with a coworker from
another functional area. What was the nature of the disagreement,
and how did the two of you work together to resolve it?

Round 4: Job Offer

- After your onsite, you’ll receive a decision within 1-2 weeks. If you don’t
receive an offer, you must wait 6-12 months to reapply.
- Netflix offers top-of-market compensation, based on a “good faith estimate of
the highest compensation each employee could make at peer firms.” Each
employee can choose how much of their compensation they want in salary
versus stock options, with the option to change it each year. These 10-year stock
options are fully vested and you can keep them even if you leave Netflix.

Summary:
It doesn’t hurt to study up on problems about algorithm or data structure, but for
the most part they won’t help you in a Netflix interview. What Netflix really
wants to see is your understanding of the role (challenges, technologies, how
you fit), your technical acumen (coding, design, and overall knowledge of a
language), and last but not least, your cultural fit

B/ Compensation

The Netflix employed compensation programs that enable them to retain

employees. The founder of the organization, Reed Hastings discovered that
compensation program is one of the significant management pratices that will
enable them to retain their employees. Thus, he introduced compensation
programs of paying workers cash salaries. This was a significant idea behind the
successful organizational performance. In addition, Hastings introduced varied
compensation programs with different components.

1/Work-life balance

When it comes to their personal lives, Netflix does not dictate what its workers
do at their homes and allows them to enjoy their personal lives to their fullest.
The company believes in providing its employees the resources that help them
strike a better work-life balance.
a). Parental Leave: Netflix recognizes that one of the most special events in an
individual's life is the birth or adoption of a child. So they introduce a parental
leave policy for new parents that allows them to take off as much time as they
want after having a child. Their parental leave policy is: "take care of your baby
and yourself." New parents generally take 4 - 8 months.

The workers on maternity and paternity leave will be paid as normal,

“eliminating the headache” of applying for state benefits, Netflix said in a
statement. In addition, employees will be allowed to work part or full-time
during the year as they wish or take it off completely.

“We want employees to have the flexibility and confidence to balance the needs
of their growing families without worrying about work or finances,” Tawni
Cranz, the company’s chief talent officer said.

Netflix’s work policies are meant to foster a culture of “freedom and

responsibility” in the company, encouraging employees to do their best.

b). Time Away: Netflix encourages its employees to take personal time off
from their jobs to enjoy their lives. At Netflix, people intermix and work a lot.
This is good for employees’ mental health and allows them to lose stress
regularly. At Netflix, they do not believe in having rigid rules since it is against
their core philosophy. The same applies to leaves also. The company does not
have a nine to five work policy and neither any rigid rules related to time offs
for the salaried employees. There is no set holiday or vacation schedule either at
Netflix. People are allowed to do what is important for them. The company
believes in working smarter and not harder. So, people can take a break
whenever their mind and body feel like it is time to take a break.

c). Family Forming: Support families at Netflix are offered family forming
benefits during fertility, surrogacy, or adoption journey. This benefit is available
to employees and their spouse/domestic partner, regardless of marital status,
gender, or sexual orientation. These times are both emotionally and physically
challenging for the employees and Netflix recognizes this challenge. Netflix
also offers an allowance to its employees through Carrot to support them over
the course of their family forming journey.

2/Finances
See below for Netflix’s philosophies on stock options, compensation, and
charitable giving.

a). Stock Option Program: Netflix has allowed its employees the freedom to
select how much of their compensation they want in the form of salaries and
how much in the form of stock options. So employees can choose all cash, all
options, or whatever combination suits them. Employees choose how much risk
and upside (down) they want. These 10-year stock options are fully-vested and
workers can keep them even if they leave Netflix.

b). Personal Top of Market: To retain employees for longer, the company pays
them at the top of their personal market. Netflix takes a market-based approach
to compensation. The talent market is not defined by set bands and grades. The changes in the market are

In this way, Netflix also hopes to eliminate the

also reflected in the compensation of Netflix workers. If the market for specific talent changes, the people do not have to wait until the annual performance appraisal event to get a raise.

pay disparities related to gender and race. Compensation at Netflix is purely

based on talent and skill as well as market situations.

c). Employee Giving Program: At Netflix, employees have the ability to

impact the world through the work they do, revolutizing internet entertainment
and sharing great storytelling globally. Netflix realize that employees may also
want to make an impact in a more personal way by giving to charitable
organizations . The company want to support employees and the they care about do their part to

organizations important to workers through match contributions up to $20,000.

3/Working with Convenience:

Living culture of freedom and responsibility, Netflix treat their employees like
an adult and trust them. Everyone has the ability to make an impact, a seat at the
table, and is expected to contribute, create, and share. See below on Netflix’s
philosophies around allowing employees to do their best work possible and not
being held down by unnecessary process.

a). Expenses and Work-Related Travel: Netflix’s policy for travel,

entertainment, gifts, and other expenses is 5 words long: “act in Netflix’s best
interest.”

“What does a ‘no limits’ expense policy actually mean?”

In Netflix’s case, it’s quite simple.Their five-word policy actually means
employees are instructed to “expense only what you would otherwise not spend,
and is worthwhile for work”. They don’t have any limits, rules, reporting or
tracking set in place to follow that, as it has proved as a waste of time.

They do not have a set travel policy at Netflix. Using guiding principles of
context, not control - employees can use judgement to make decisions that are
effective to the business and set them up for success.

b). Work and do not drive: Commuting to work can be difficult for people and
apart from being time-consuming, long-distance commutes can also be stressful,
particularly during rush hours. Netflix has partnered with a ridesharing service
to ensure that its employees do not have to drive to work and have the flexibility
to focus on work while they commute.

c). Relocation Benefits: Netflix is not bound by policies and restrictions of

where great talent is located. Netflix has a dedicated team to support the
employees when they are relocating from one country, city or neighborhood to
another. Relocation can be a very stressful task and the transition needs to be
smooth which Netflix has ensured through the use of a dedicated team. Apart
from providing all the major relocation-related services, the company also offers
financial support to help with relocation.

Summary

Netflix said in the proxy its executive compensation philosophy is designed to

attract and retain outstanding performers, is guided by market rates and tailored
to account for the specific needs and responsibilities of the particular position as
well as the performance and unique qualifications of the individual employee.

3/ What can we learn from

1. Recruitment: Netflix is just one example of how to gain success by
applying effective recruitment strategies.
Hire Talented People Who Model Adult Thinking and Behavior
They go out of their way to hire talent who have maturity and drive to put the
company’s interest first and to collaborate positively with the other team
members. Most companies spend time and money forming HR policies to deal
with problems that only affect a small percentage of employees, when it is more
efficient to prevent the problems from arising in the first place. Essentially, they
look for talent that demonstrates adult-like attitudes and behaviors. These
behaviors might include a willingness to openly talk about problems with
coworkers and managers and time management skills.

This adult belief system allows the business to provide flexible benefits and
incentives, with the same guiding principle “do the right thing for Netflix”. Two
of their “non policies” following this ethos are:

- Unlimited vacation – As long as employees take vacation time that does

not interfere with work or projects, they can take it whenever they want.
Several other companies are now following this trend with successful
results.
- A five word expense policy – “Act in Netflix’s best interests”. In an adult
culture, employees spend company money more frugally, as if it were
their own.

Netflix’s New Vision for Recruiting Culture

- Hiring managers and recruiters call the shots. When most companies
scale, they end up turning over the recruiting process to an MSP. Hiring
managers are relegated to simply passing on requisitions for recruiters to
fill. Recruiters become commodified, no longer holding any power over
the hiring decision. At Netflix, hiring managers and recruiters are in
complete control of the hiring process - no third parties, no hiring
committees, no middlemen.
- Honesty is sacred. Open communication has been ingrained in Netflix’s
company culture from the start, so it’s no surprise that it’s part of their
recruiting model as well. Hiring managers and recruiters have a healthy
feedback loop at Netflix; hiring managers offer regular performance
critiques, and recruiters help hiring managers learn to communicate with
their candidates. Recruiting is treated as a consultative process where
both parties are invested in each other’s success.
- Accessibility and transparency produce better hires – and more
scalability. There are no gatekeepers in the hiring process at Netflix. The
recruiting team has access to the information and resources they need to
find top-quality talent, and hiring managers are always waiting in the
wings to help. There’s a flow to the hiring process that’s rarely seen
elsewhere. Furthermore, hiring managers and recruiters genuinely care
 about each other and their candidates. It’s a true partnership that leads to
better hires and rapid scalability.

Summary
A recruiting platform that’s inspired by Netflix’s transparent and collaborative
culture, and built on an innovative framework that embodies those very ideals –
it’s a beautiful vision.

2. Compensation: the criteria that are absolutely essential for success in the
model of compensation:

- Premium pay. As noted above, Netflix salaries are targeted at the 90th
percentile and annual adjustment decisions focus on keeping employees
at a highly competitive
level of pay.

- Transparent compensation practices. Netflix essentially has two

practices, outlined in the HR document, to make compensation equitable
and transparent:

1. They are clear about how they determine compensation.

How many times have you read a job description that says, “salary
commensurate with experience?” Not very enlightening, right? Netflix is
more clear in how they calculate appropriate offers. Their policy is to
evaluate three things – what the employee could earn in a similar position
elsewhere, what they would cost to replace, and what Netflix would be
willing to pay to keep them, should they consider leaving for another job.

2. They pay a “top-of-market” rate.

By evaluating those three factors, Netflix pays “top-of-market” rate for
all positions. This policy helps Netflix offer some of the most competitive
salaries in its industry, attract top talent, and keep current employees
happy. As one of the top-paying companies in the US, according to a
2015 report, Netflix is less likely to lose employees based solely on a
higher offer elsewhere.
 So, what impact do these policies have on employees? For one,
transparent compensation practices can help to level the playing field for
women and minorities, who are often at a disadvantage when salary
negotiation is involved. Netflix salary offers reflect the top-of-market
value of the position – rather than the lowest amount an employee is
willing to accept.

- Careful avoidance of “incentives to stay.” Netflix foregoes any reward

programs or elements which might interfere with the need to move an
employee out quickly. These include vesting schedules for its stock
options (they vest immediately) and any other retention or “golden
parachute” type of plan.

Summary

The Netflix benefits programs center around creating flexibility for employees,
so they are supported both inside and out of work.
HR: Conclusion of Netflix’s Human Resources Management.

- Netflix’s approach to HR refreshingly honest and contemporary. They mould

their approach to changes in HR, and do not keep pushing old fashioned and
outdated styles.

- It is easily identifiable how Netflix go through constant renovation and a cycle

of employees by letting the right people go when technology shifts whilst
attracting talent from other big tech firms such as the likes of Google and
Facebook.

- Netflix maintains a corporate culture that helps keep its organization flexible,
innovative, and responsive to market demand and consumer preferences. The
emphases on employee autonomy, communication, attitude, productivity, and
rule avoidance create a business situation where employees are motivated to
take risks and deliver innovative ideas that contribute to the online company’s
competitive advantage.
- Netflix's no-holds-barred approach to HR has gained the attention of many,
both good and bad. This is because they’ve succeeded not only in retaining
prime talent, but also in achieving a high-performance culture.

-> Through Netflix’s HRMS schemes it is evident that they have fulfilled the
objectives of they system by maximising recruitment and retention of the
appropriate staff, develop cost effective reward policies, develop global reward
practises that are fair and consistent, and ensure consistency with business
strategy. Netflix has been successful with its refreshing approach to Human
Resources. The key take-away for others here is definitely to get rid of the
outdated strategies which fail to provide results.