1 00:00:02,800 --> 00:00:04,880 Speaker 1: One of the most valuable entertainment companies in the world 2 00:00:04,920 --> 00:00:06,800 Speaker 1: and one of the most popular entertainment companies in the 3 00:00:06,840 --> 00:00:09,680 Speaker 1: world is Netflix. It currently has more than two hundred 4 00:00:09,680 --> 00:00:11,560 Speaker 1: and seventy five million subscribers. 5 00:00:11,880 --> 00:00:13,520 Speaker 2: I recently had a chance in Washington, d C. 6 00:00:13,880 --> 00:00:16,160 Speaker 1: To sit down with the co CEO of that company, 7 00:00:16,360 --> 00:00:18,840 Speaker 1: Ted Surrandos, and ask him how he got started this 8 00:00:18,880 --> 00:00:21,480 Speaker 1: company from a very modest background, and how he now 9 00:00:21,560 --> 00:00:25,560 Speaker 1: sees the future of Netflix. So, when you joined Netflix 10 00:00:25,600 --> 00:00:28,160 Speaker 1: in two thousand, the company was about three years old 11 00:00:28,600 --> 00:00:32,360 Speaker 1: but relatively small. Did you ever in your wildest dreams 12 00:00:32,760 --> 00:00:34,920 Speaker 1: imagine the company would be one of the most valuable 13 00:00:34,920 --> 00:00:37,320 Speaker 1: companies in the world and you would have today a 14 00:00:37,360 --> 00:00:40,080 Speaker 1: market value of over three hundred billion dollars. 15 00:00:40,920 --> 00:00:43,919 Speaker 3: The short answer to that question is no. I think 16 00:00:43,960 --> 00:00:46,760 Speaker 3: when we joined we had a couple hundred people, including 17 00:00:46,800 --> 00:00:51,280 Speaker 3: the people who are stuffing DVD envelopes. Back then, Blockbuster 18 00:00:51,560 --> 00:00:54,480 Speaker 3: was the biggest entertainment brand in the world, with a 19 00:00:54,520 --> 00:00:57,640 Speaker 3: market gap of about eight billion dollars. They were definitely 20 00:00:57,680 --> 00:01:01,360 Speaker 3: the biggest in terms of global footprint. I mean, most 21 00:01:01,400 --> 00:01:04,720 Speaker 3: people watch their movies renting a DVD from Blockbuster, and 22 00:01:04,800 --> 00:01:08,080 Speaker 3: at eight billion, that seemed almost unattainable when we went 23 00:01:08,160 --> 00:01:10,280 Speaker 3: public in two thousand and two, about two hundred and 24 00:01:10,280 --> 00:01:10,759 Speaker 3: fifty million. 25 00:01:10,959 --> 00:01:12,720 Speaker 1: So for people who were too young to remember, this, 26 00:01:12,800 --> 00:01:15,440 Speaker 1: Blockbuster was a place where you go to buy something 27 00:01:15,440 --> 00:01:18,880 Speaker 1: called a DVD, yes, and you went there, you rented them, 28 00:01:19,280 --> 00:01:21,440 Speaker 1: and then you put them back on your VCR, and 29 00:01:21,480 --> 00:01:23,559 Speaker 1: then you after a couple of days, like a library book, 30 00:01:23,600 --> 00:01:26,480 Speaker 1: you bring it back and so forth. The novelty that 31 00:01:26,800 --> 00:01:29,160 Speaker 1: Netflix had when it first started in nineteen ninety seven, 32 00:01:29,200 --> 00:01:31,480 Speaker 1: as I recall, was that you didn't have to go 33 00:01:31,560 --> 00:01:34,720 Speaker 1: to a Blockbuster. You could order something I guess online 34 00:01:34,760 --> 00:01:36,640 Speaker 1: and then you would have it sent to you by 35 00:01:36,680 --> 00:01:38,880 Speaker 1: a FedEx or equivalent kind of company. 36 00:01:38,560 --> 00:01:40,720 Speaker 3: Right through the US mail okay ESPs. 37 00:01:40,840 --> 00:01:43,399 Speaker 1: So who came up with the idea of saying, well, 38 00:01:43,480 --> 00:01:45,600 Speaker 1: FedEx is a little old and mailing is old, and 39 00:01:45,640 --> 00:01:47,319 Speaker 1: we want to go to streaming. Who was the brilliant 40 00:01:47,319 --> 00:01:48,520 Speaker 1: person that came up with that idea? 41 00:01:49,040 --> 00:01:51,920 Speaker 3: You know, the company was always conceived to be a 42 00:01:51,960 --> 00:01:55,400 Speaker 3: digital company, read Hastings. When he came up with this idea, 43 00:01:55,440 --> 00:01:57,040 Speaker 3: he was thinking about it very much. So when he 44 00:01:57,120 --> 00:01:59,640 Speaker 3: named the company even he called it Netflix, not DVD Flix, 45 00:02:00,360 --> 00:02:03,200 Speaker 3: and this idea. When I met Reid in nineteen ninety nine. 46 00:02:03,960 --> 00:02:06,760 Speaker 3: He describes Netflix pretty much like it is right now. 47 00:02:07,840 --> 00:02:11,000 Speaker 3: And this was at a time when no literally no 48 00:02:11,280 --> 00:02:13,680 Speaker 3: entertainment was coming into the home on the internet, and 49 00:02:13,720 --> 00:02:17,320 Speaker 3: he described a world where all home entertainment would come 50 00:02:17,320 --> 00:02:18,400 Speaker 3: in on the internet. 51 00:02:18,720 --> 00:02:22,320 Speaker 1: So when streaming came along, the theory was that people 52 00:02:22,320 --> 00:02:25,600 Speaker 1: would be willing to pay let's say a monthly subscribing rate, 53 00:02:25,760 --> 00:02:28,639 Speaker 1: right and that they would see programming they couldn't otherwise 54 00:02:28,680 --> 00:02:32,200 Speaker 1: easily get. But the idea of doing your own program 55 00:02:32,240 --> 00:02:34,600 Speaker 1: it was relatively novel. Now you are seen as the 56 00:02:34,960 --> 00:02:36,880 Speaker 1: person who came up with the idea of not just 57 00:02:37,040 --> 00:02:39,160 Speaker 1: taking stuff that's already out there, the one hundred thousand 58 00:02:39,200 --> 00:02:42,320 Speaker 1: things that might already be available, but producing your own 59 00:02:42,400 --> 00:02:43,520 Speaker 1: programming for Netflix. 60 00:02:43,520 --> 00:02:45,239 Speaker 2: So where'd you get that idea from? 61 00:02:45,360 --> 00:02:47,600 Speaker 3: So in the very beginning, we didn't really think much 62 00:02:47,600 --> 00:02:49,920 Speaker 3: about doing original programming because it wasn't the problem we 63 00:02:49,919 --> 00:02:52,960 Speaker 3: were trying to solve. The problem was really distribution and 64 00:02:53,000 --> 00:02:55,760 Speaker 3: how to you in the consumer relationship with how to 65 00:02:55,800 --> 00:02:58,239 Speaker 3: watch a movie? You go to the video store, you 66 00:02:58,320 --> 00:03:00,239 Speaker 3: rent it, you return it, you pay a light fee 67 00:03:00,240 --> 00:03:02,359 Speaker 3: if you're late, and it was a very clunky way 68 00:03:02,440 --> 00:03:05,679 Speaker 3: to distribute things in this way, the subscription revenue, the 69 00:03:05,800 --> 00:03:09,560 Speaker 3: subscription model gave the people the ability not to ever 70 00:03:09,560 --> 00:03:11,720 Speaker 3: have a late fee. They could kind of pick and 71 00:03:11,800 --> 00:03:14,079 Speaker 3: choose that however they wanted things. So we were solving 72 00:03:14,120 --> 00:03:17,320 Speaker 3: a distribution problem one and the other one was maybe 73 00:03:17,320 --> 00:03:21,880 Speaker 3: a bigger problem, which was marketing. It's incredibly inefficient to 74 00:03:22,000 --> 00:03:25,400 Speaker 3: market movies and TV shows to people because tastes are 75 00:03:25,480 --> 00:03:28,040 Speaker 3: so diverse and so eclectic that in order for me 76 00:03:28,080 --> 00:03:29,600 Speaker 3: to tell you about a movie that I think you 77 00:03:29,680 --> 00:03:31,880 Speaker 3: might like, I probably have to take out an ad 78 00:03:31,880 --> 00:03:33,919 Speaker 3: in the newspaper and tell the whole city about it 79 00:03:33,960 --> 00:03:34,960 Speaker 3: and hope that you see it. 80 00:03:35,400 --> 00:03:39,119 Speaker 1: So the industry lore is that you got this off 81 00:03:39,160 --> 00:03:42,040 Speaker 1: the ground by agreeing to pay one hundred million dollars 82 00:03:42,440 --> 00:03:45,200 Speaker 1: to a new show that had not actually showed. 83 00:03:45,400 --> 00:03:47,720 Speaker 2: There was House of Cards, Plow. It was a lot 84 00:03:47,800 --> 00:03:51,280 Speaker 2: like real estate. It's all about location, location, location. 85 00:03:51,600 --> 00:03:54,200 Speaker 1: And it had not produced a single anything yet, but 86 00:03:54,200 --> 00:03:57,440 Speaker 1: it was a concept. When you told read Hastings, I 87 00:03:57,480 --> 00:03:59,320 Speaker 1: guess what, I just spent one hundred million dollars to 88 00:03:59,320 --> 00:04:00,480 Speaker 1: buy something and exists. 89 00:04:00,520 --> 00:04:02,080 Speaker 2: Yet did he say great idea? 90 00:04:02,560 --> 00:04:06,520 Speaker 3: No? He was a little surprised, but when I explained 91 00:04:06,560 --> 00:04:08,880 Speaker 3: it to him, he was very supportive of it immediately. 92 00:04:09,000 --> 00:04:12,640 Speaker 3: You have to remember, recreated this company culture that enabled 93 00:04:12,640 --> 00:04:14,920 Speaker 3: me to take a big swing like that, and for me, 94 00:04:15,040 --> 00:04:18,080 Speaker 3: I looked at it as a kind of classic risk reward. Yes, 95 00:04:18,120 --> 00:04:21,080 Speaker 3: this is a lot of money. If this doesn't work, 96 00:04:21,240 --> 00:04:24,800 Speaker 3: we will have dramatically overpaid for a show, which we 97 00:04:25,000 --> 00:04:27,200 Speaker 3: kind of at risk of doing all the time. But 98 00:04:27,279 --> 00:04:30,000 Speaker 3: if it does work, we could fundamentally change the course 99 00:04:30,040 --> 00:04:30,560 Speaker 3: of the business. 100 00:04:30,760 --> 00:04:32,400 Speaker 2: If it didn't work and you think you might be 101 00:04:32,440 --> 00:04:33,280 Speaker 2: out of a job. 102 00:04:33,360 --> 00:04:35,840 Speaker 3: I told I prepared my wife that it was a possibility. 103 00:04:37,040 --> 00:04:38,600 Speaker 3: She said, she said, will you get fired to this? 104 00:04:38,640 --> 00:04:40,719 Speaker 3: Other one guy said, well, it's fireable, it's firerable. 105 00:04:41,520 --> 00:04:44,080 Speaker 1: There's another idea that you were credited with and I 106 00:04:44,120 --> 00:04:47,599 Speaker 1: think correctly with coming up with, which is called binge watching. 107 00:04:47,680 --> 00:04:49,320 Speaker 2: I guess I could call it. I don't know if 108 00:04:49,320 --> 00:04:50,280 Speaker 2: you like that word. 109 00:04:50,600 --> 00:04:55,120 Speaker 1: Didn't initially, Okay, So I understand binge watching. And this historically, 110 00:04:55,200 --> 00:04:57,840 Speaker 1: when there was a TV series on, you watched a 111 00:04:57,960 --> 00:05:01,600 Speaker 1: series episode one week, the next week, you watch the 112 00:05:01,680 --> 00:05:03,920 Speaker 1: second one next week. So on you came up with 113 00:05:03,960 --> 00:05:06,520 Speaker 1: the idea of having are the ability to watch everything 114 00:05:06,560 --> 00:05:08,840 Speaker 1: right at once, more or less binge watching, as they 115 00:05:08,839 --> 00:05:10,880 Speaker 1: call it. Did you come up with that idea or 116 00:05:10,880 --> 00:05:13,159 Speaker 1: did it evolve some way, or how did it come about? 117 00:05:13,200 --> 00:05:15,359 Speaker 3: It was pretty heavily informed by what people were doing 118 00:05:15,400 --> 00:05:18,640 Speaker 3: back in the back in the earliest days on DVD, 119 00:05:18,640 --> 00:05:20,920 Speaker 3: I noticed that we'd have disc that would have four 120 00:05:20,920 --> 00:05:23,000 Speaker 3: episodes of a show on it, and they would turn 121 00:05:23,200 --> 00:05:26,039 Speaker 3: very fast because people were churning through the show as 122 00:05:26,120 --> 00:05:29,039 Speaker 3: quick as they could. And then when we started streaming, 123 00:05:29,080 --> 00:05:31,599 Speaker 3: we were licensing shows that had already aired on television, 124 00:05:31,880 --> 00:05:33,760 Speaker 3: so we got them a year later, but we got 125 00:05:33,760 --> 00:05:35,279 Speaker 3: the whole season and we just put it all up, 126 00:05:35,600 --> 00:05:38,080 Speaker 3: so we on a notice, when you're watching, some people 127 00:05:38,120 --> 00:05:40,120 Speaker 3: watch two episodes at a time, some people watch three. 128 00:05:40,240 --> 00:05:42,960 Speaker 3: Nobody watched one. So when we got how came to 129 00:05:43,000 --> 00:05:45,000 Speaker 3: House the cards, we had to decide how to release it, 130 00:05:45,040 --> 00:05:47,320 Speaker 3: and I said, well, don't we just put it like 131 00:05:47,480 --> 00:05:49,640 Speaker 3: the other thousands of things on Netflix and do it 132 00:05:49,680 --> 00:05:51,320 Speaker 3: all at once and see what happens. 133 00:05:51,640 --> 00:05:51,839 Speaker 2: Now. 134 00:05:51,880 --> 00:05:54,760 Speaker 1: Sometimes in the business world, particularly the technology world, somebody 135 00:05:54,839 --> 00:05:57,200 Speaker 1: might have a great idea and they have an advance 136 00:05:57,240 --> 00:05:59,480 Speaker 1: on somebody for maybe two years or so, and then 137 00:05:59,480 --> 00:06:01,880 Speaker 1: everybody else figures out what they should be doing, and 138 00:06:01,880 --> 00:06:03,760 Speaker 1: they catch up, and sometimes they have more resources than 139 00:06:03,760 --> 00:06:06,200 Speaker 1: they beat the original person who came up with the concept. 140 00:06:06,440 --> 00:06:09,640 Speaker 1: Were you worried that programmers like our companies had programming 141 00:06:09,720 --> 00:06:12,880 Speaker 1: like Disney would figure out streaming and then wipe you out? 142 00:06:12,960 --> 00:06:14,120 Speaker 2: Or you never were worried about that. 143 00:06:14,279 --> 00:06:16,920 Speaker 3: No, always worried about that. We couldn't believe it took 144 00:06:16,960 --> 00:06:19,360 Speaker 3: so long for them to catch up to it. In fact, 145 00:06:19,400 --> 00:06:21,360 Speaker 3: as one of the motivators to make our own content 146 00:06:21,520 --> 00:06:23,880 Speaker 3: was I was pretty sure that if we were right, 147 00:06:24,279 --> 00:06:26,200 Speaker 3: that all of these people who are supplying us their 148 00:06:26,240 --> 00:06:27,680 Speaker 3: old shows would never sell to us. 149 00:06:27,880 --> 00:06:30,760 Speaker 1: When you started producing shows and making your own shows, 150 00:06:30,800 --> 00:06:34,039 Speaker 1: did you become the most popular person in Hollywood? Because 151 00:06:34,120 --> 00:06:36,120 Speaker 1: all of a sudden somebody has somebody who can green 152 00:06:36,200 --> 00:06:39,320 Speaker 1: light something and so could you go out to dinner 153 00:06:39,680 --> 00:06:42,880 Speaker 1: or lunch without having people descend upon you with scripts 154 00:06:42,880 --> 00:06:43,400 Speaker 1: and so forth? 155 00:06:43,400 --> 00:06:44,240 Speaker 2: How did you deal with all that? 156 00:06:44,320 --> 00:06:46,839 Speaker 3: Yeah, it was heavy because we were a new buyer 157 00:06:46,920 --> 00:06:49,400 Speaker 3: is very popular in town so and I would say 158 00:06:49,400 --> 00:06:51,359 Speaker 3: that it was never limited just to business hours. So 159 00:06:51,680 --> 00:06:53,640 Speaker 3: if you're out at a restaurant with my wife and 160 00:06:53,720 --> 00:06:56,080 Speaker 3: someone would come in and start pitching away at the table. 161 00:06:56,240 --> 00:06:59,160 Speaker 3: Somebody tells these people in film school, if you ever 162 00:06:59,200 --> 00:07:01,200 Speaker 3: see a buyer anywhere, sell to them? 163 00:07:01,640 --> 00:07:03,360 Speaker 1: Does that ever work there? But you ever never went 164 00:07:03,440 --> 00:07:05,800 Speaker 1: to nobody came up and lunch. But an idea that 165 00:07:05,800 --> 00:07:06,599 Speaker 1: you're actually. 166 00:07:06,400 --> 00:07:07,360 Speaker 3: I can't think of one. 167 00:07:08,279 --> 00:07:10,480 Speaker 1: You know, there's been a lot of consolidation in recent 168 00:07:10,560 --> 00:07:14,160 Speaker 1: years in the entertainment world. You know, Time Warner was 169 00:07:14,200 --> 00:07:16,760 Speaker 1: sold in effect, and then you've got Powamount. 170 00:07:16,360 --> 00:07:17,040 Speaker 2: Now being sold. 171 00:07:17,280 --> 00:07:19,920 Speaker 1: Is all of this good for you because there's consolidation 172 00:07:20,040 --> 00:07:21,440 Speaker 1: and then you have fewer people to compete it with. 173 00:07:21,760 --> 00:07:23,800 Speaker 1: Or is it not so good because you have more 174 00:07:23,840 --> 00:07:25,520 Speaker 1: powerful people that can compete against you. 175 00:07:25,640 --> 00:07:27,720 Speaker 3: Yeah, a little bit of both. So I think it's 176 00:07:27,840 --> 00:07:30,920 Speaker 3: competition has been very good people. I usually don't talk 177 00:07:30,920 --> 00:07:34,000 Speaker 3: about other people's shows publicly, but like people. As someone 178 00:07:34,040 --> 00:07:36,480 Speaker 3: asked me recently, what's the show that's not on Netflix 179 00:07:36,480 --> 00:07:38,440 Speaker 3: that you like? And I said The Bear. And the 180 00:07:38,440 --> 00:07:40,240 Speaker 3: reason I talk about the show is because I think 181 00:07:40,280 --> 00:07:43,000 Speaker 3: it raises the bar for everybody. So I think you 182 00:07:43,040 --> 00:07:45,280 Speaker 3: have one competition out there to keep you push, to 183 00:07:45,320 --> 00:07:46,040 Speaker 3: keep pushing you. 184 00:07:46,200 --> 00:07:48,640 Speaker 1: But the consolidation won't occur by your buying one of 185 00:07:48,680 --> 00:07:51,320 Speaker 1: these major studios, because that's not in your house of 186 00:07:51,400 --> 00:07:52,280 Speaker 1: cards kind of thing. 187 00:07:52,520 --> 00:07:54,520 Speaker 3: This is not in our DNA because they were most 188 00:07:54,600 --> 00:07:58,040 Speaker 3: mostly builders. We had done a few a handful of 189 00:07:58,080 --> 00:08:01,800 Speaker 3: small IP inquisitions over the years, and that may change 190 00:08:01,800 --> 00:08:04,480 Speaker 3: over the next in the next few years, but for 191 00:08:04,560 --> 00:08:08,320 Speaker 3: now we're trying to without the I would say a 192 00:08:08,320 --> 00:08:11,280 Speaker 3: big library of IP can be a really nice benefit 193 00:08:11,560 --> 00:08:13,640 Speaker 3: for us. That's really been a benefit not to have it, 194 00:08:13,960 --> 00:08:16,920 Speaker 3: because it's got it's pushed us to make really original, 195 00:08:16,960 --> 00:08:20,520 Speaker 3: creative things and not to stay corralled into one pool 196 00:08:20,560 --> 00:08:23,040 Speaker 3: of IP. And we're spending about seventeen billion dollars on 197 00:08:23,040 --> 00:08:26,080 Speaker 3: our programming and as our revenue grows, well, that number 198 00:08:26,080 --> 00:08:29,000 Speaker 3: will keep growing because we do think that there's an 199 00:08:29,040 --> 00:08:32,560 Speaker 3: incredible appetite for more movies and more TV shows that 200 00:08:32,600 --> 00:08:33,680 Speaker 3: people love now on. 201 00:08:33,720 --> 00:08:36,119 Speaker 1: A few years ago, there was a writer's strike in Hollywood, 202 00:08:36,400 --> 00:08:38,520 Speaker 1: and one of the issues before it got resolved is 203 00:08:38,520 --> 00:08:41,920 Speaker 1: how you deal with artificial intelligence. How do you prevent 204 00:08:42,240 --> 00:08:45,240 Speaker 1: artificial intelligence from taking over what writers do, and how 205 00:08:45,240 --> 00:08:48,120 Speaker 1: do you compensate them when artificial intelligence does something that 206 00:08:48,160 --> 00:08:51,040 Speaker 1: adds to what they've already done. So is artificial intelligence 207 00:08:51,160 --> 00:08:53,120 Speaker 1: important part of your business now? And how do you 208 00:08:53,200 --> 00:08:55,760 Speaker 1: use AI and deciding what to produce and how to 209 00:08:55,800 --> 00:08:56,240 Speaker 1: produce it? 210 00:08:57,240 --> 00:08:59,400 Speaker 3: For me, I really mostly think of AI as a 211 00:08:59,480 --> 00:09:02,880 Speaker 3: create wars tool, not a creative tool. So I think 212 00:09:02,880 --> 00:09:05,439 Speaker 3: creators will use it to make to tell better stories. 213 00:09:05,600 --> 00:09:08,000 Speaker 3: We're not using it to tell stories instead of them, 214 00:09:08,679 --> 00:09:09,959 Speaker 3: And I don't think and I don't think we'd be 215 00:09:10,040 --> 00:09:12,200 Speaker 3: very effective at it, or AI would be very effective 216 00:09:12,200 --> 00:09:13,920 Speaker 3: at doing that instead of people. 217 00:09:14,240 --> 00:09:18,520 Speaker 1: So when you put something on Netflix, you can analyze 218 00:09:18,600 --> 00:09:21,000 Speaker 1: within an hour or so or maybe ten minutes, whether 219 00:09:21,040 --> 00:09:23,120 Speaker 1: people are watching it. And do you get those kind 220 00:09:23,160 --> 00:09:27,080 Speaker 1: of data algorithms that show you exactly how much people 221 00:09:27,240 --> 00:09:29,800 Speaker 1: like it? And do you actually change things after you 222 00:09:29,840 --> 00:09:31,839 Speaker 1: see what people like, or how do you deal with 223 00:09:32,200 --> 00:09:33,520 Speaker 1: the instant feedback you get? 224 00:09:33,920 --> 00:09:36,199 Speaker 3: What I'm really looking for is if they watch episode one, 225 00:09:36,240 --> 00:09:38,600 Speaker 3: do they roll in episode two? And if they do two, 226 00:09:38,640 --> 00:09:40,400 Speaker 3: do they get to three? And how much time are 227 00:09:40,400 --> 00:09:44,240 Speaker 3: they spending. We're in a really unique place in entertainment 228 00:09:44,280 --> 00:09:46,800 Speaker 3: history right now where every time you release a new 229 00:09:46,800 --> 00:09:49,840 Speaker 3: movie or a new TV show, you are used to 230 00:09:49,840 --> 00:09:52,080 Speaker 3: only compete with three other shows on three other networks 231 00:09:52,440 --> 00:09:55,559 Speaker 3: today you compete with every single thing ever made, and 232 00:09:55,720 --> 00:09:57,680 Speaker 3: one click away you could just switch to something else. 233 00:09:58,120 --> 00:10:00,280 Speaker 3: So you want to watch these things? Are people? If 234 00:10:00,480 --> 00:10:03,400 Speaker 3: if you push play, do you stick around? That to 235 00:10:03,440 --> 00:10:05,800 Speaker 3: me is the biggest indicator of do we do it right? 236 00:10:05,920 --> 00:10:09,880 Speaker 1: So let's talk about today where Netflix says today you 237 00:10:09,960 --> 00:10:12,200 Speaker 1: have how many subscribers. 238 00:10:11,800 --> 00:10:15,840 Speaker 3: Two hundred and seventy seven million subscribers, So you figure 239 00:10:16,360 --> 00:10:19,520 Speaker 3: a couple of people per household watching, You've got about 240 00:10:19,520 --> 00:10:21,680 Speaker 3: a viewership now over five hundred million people. 241 00:10:21,760 --> 00:10:25,199 Speaker 1: So two hundred and seventy seven million subscribers are more 242 00:10:25,240 --> 00:10:26,800 Speaker 1: than half in the United States, or. 243 00:10:26,960 --> 00:10:28,800 Speaker 3: About seventy percent from outside the United. 244 00:10:28,600 --> 00:10:31,840 Speaker 1: States, seventy percent outside What is the second biggest country 245 00:10:32,160 --> 00:10:33,120 Speaker 1: out of the United States. 246 00:10:33,200 --> 00:10:38,040 Speaker 3: Well, we report by territory, by regions, so Amia is 247 00:10:38,080 --> 00:10:40,400 Speaker 3: the second largest outside of the United States, but we're 248 00:10:40,480 --> 00:10:42,600 Speaker 3: very big in the UK and Brazil. 249 00:10:43,320 --> 00:10:46,480 Speaker 1: So for twenty plus years or so, your subscriber numbers 250 00:10:46,520 --> 00:10:49,240 Speaker 1: went up every month, it seems, without fail. And then 251 00:10:49,280 --> 00:10:51,679 Speaker 1: one month, I think you announced in a quarterly earnings 252 00:10:51,720 --> 00:10:54,760 Speaker 1: that actually subscribers went down a little bit. All of 253 00:10:54,800 --> 00:10:56,640 Speaker 1: a sudden, the world took a large part of your 254 00:10:56,640 --> 00:10:59,600 Speaker 1: market capitalization away. Were you shocked that people were so 255 00:10:59,640 --> 00:11:02,040 Speaker 1: upset about the fact that you lost a few subscribers 256 00:11:02,040 --> 00:11:03,280 Speaker 1: compared to where they thought you should be. 257 00:11:03,400 --> 00:11:06,080 Speaker 3: Probably the magnitude of it was shocking, because we knew 258 00:11:06,080 --> 00:11:09,439 Speaker 3: the fundamentals of the business were intact and fine. It 259 00:11:09,600 --> 00:11:12,960 Speaker 3: just you had a whip saw effect from covid. There 260 00:11:12,960 --> 00:11:14,480 Speaker 3: are a lot of things that were happening that we're 261 00:11:14,520 --> 00:11:16,520 Speaker 3: still trying to figure out. But it was a kind 262 00:11:16,520 --> 00:11:18,920 Speaker 3: of a temporary blip, but it was it was. It 263 00:11:18,960 --> 00:11:19,840 Speaker 3: was a hard thud. 264 00:11:20,360 --> 00:11:22,760 Speaker 1: But your market cap has come way back and higher 265 00:11:22,760 --> 00:11:26,280 Speaker 1: than it's ever been right currently, and so that blip 266 00:11:26,440 --> 00:11:28,439 Speaker 1: was not a big problem, I guess. But one of 267 00:11:28,480 --> 00:11:30,920 Speaker 1: the things you did that also upset people for a 268 00:11:30,920 --> 00:11:34,960 Speaker 1: while was you said you can't use your past code 269 00:11:35,679 --> 00:11:37,440 Speaker 1: to give it to somebody else, and not historically, as 270 00:11:37,480 --> 00:11:40,640 Speaker 1: I understand it, somebody could say to his friend, I 271 00:11:40,880 --> 00:11:42,960 Speaker 1: have a pass code for Netflix, why don't you use it? 272 00:11:43,280 --> 00:11:45,080 Speaker 1: And I assume I was taking revenue away from you. 273 00:11:45,160 --> 00:11:47,640 Speaker 1: And how did you figure out how big that problem was, 274 00:11:47,679 --> 00:11:49,640 Speaker 1: and how did you have the courage to say, you 275 00:11:49,760 --> 00:11:51,600 Speaker 1: know more of that and not worry that people were 276 00:11:51,600 --> 00:11:53,520 Speaker 1: going to get rid of their Netflix subscription. 277 00:11:53,800 --> 00:11:56,280 Speaker 3: Well, we had it was a couple of times. One 278 00:11:56,320 --> 00:11:58,960 Speaker 3: was revenue, but the other part of it was this 279 00:11:59,040 --> 00:12:02,840 Speaker 3: personalization helping you find something to watch works better if 280 00:12:02,840 --> 00:12:05,120 Speaker 3: you don't have five or six different people using your account. 281 00:12:05,240 --> 00:12:07,240 Speaker 3: So for us, it was a really a way to 282 00:12:07,320 --> 00:12:10,600 Speaker 3: really hone in with the personalization technology, but also a 283 00:12:10,640 --> 00:12:13,079 Speaker 3: way to kind of test the value proposition. If you've 284 00:12:13,120 --> 00:12:15,920 Speaker 3: got our average members are watching about two hours in 285 00:12:15,920 --> 00:12:19,240 Speaker 3: Netflix every day. So basically when you go back out 286 00:12:19,240 --> 00:12:20,760 Speaker 3: to people and say, hey, you know that thing that 287 00:12:20,800 --> 00:12:22,960 Speaker 3: you're using for two hours a day and not paying for, 288 00:12:23,160 --> 00:12:25,400 Speaker 3: we'd like you to get your own account. And what's 289 00:12:25,400 --> 00:12:27,360 Speaker 3: turned out nicely about that is most people say, yeah, 290 00:12:27,400 --> 00:12:28,679 Speaker 3: that's well worth it for me to do that. 291 00:12:29,000 --> 00:12:30,920 Speaker 1: Now, when I had my company and I was the 292 00:12:30,960 --> 00:12:33,160 Speaker 1: co CEO of it, I had a co co who 293 00:12:33,160 --> 00:12:35,000 Speaker 1: I started the company with, so we got along well, 294 00:12:35,040 --> 00:12:37,600 Speaker 1: we had different responsibilities and it worked out reasonably. Well, 295 00:12:38,080 --> 00:12:41,360 Speaker 1: you have a co CEO, let me talk about initially 296 00:12:41,440 --> 00:12:43,640 Speaker 1: you are the company was started by Reid Hastings and 297 00:12:43,679 --> 00:12:45,160 Speaker 1: he asked you to be the co co Were you 298 00:12:45,240 --> 00:12:47,840 Speaker 1: surprised that a founder of a company took somebody who 299 00:12:47,920 --> 00:12:50,200 Speaker 1: had been employee and made him the co CO was 300 00:12:50,200 --> 00:12:51,160 Speaker 1: out a surprise to you. 301 00:12:51,240 --> 00:12:53,080 Speaker 3: It was a surprise. It would be a shock if 302 00:12:53,080 --> 00:12:55,000 Speaker 3: I didn't know Read that well at the time, because 303 00:12:55,040 --> 00:12:57,240 Speaker 3: I back to my first time I met Read in 304 00:12:57,320 --> 00:13:00,760 Speaker 3: ninety nine. He did talk about this desire to build 305 00:13:00,800 --> 00:13:03,880 Speaker 3: a company that would be around decades and centuries after him, 306 00:13:04,320 --> 00:13:09,160 Speaker 3: so he foresaw some kind of succession already. So I 307 00:13:09,280 --> 00:13:11,679 Speaker 3: believe that Reid saw this succession that we just went 308 00:13:11,720 --> 00:13:15,200 Speaker 3: through recently fifteen years ago, and started acting on it 309 00:13:15,240 --> 00:13:18,040 Speaker 3: twelve years ago, and which is very unusual. I think 310 00:13:18,320 --> 00:13:20,200 Speaker 3: your point, as you point out, for a founder, but 311 00:13:20,280 --> 00:13:22,520 Speaker 3: for somebody who really is thinking about the company first 312 00:13:22,559 --> 00:13:25,360 Speaker 3: and the longevity of a company first. He's been amazing 313 00:13:25,360 --> 00:13:25,720 Speaker 3: about that. 314 00:13:25,800 --> 00:13:28,480 Speaker 1: So he stepped back. He's executive chairman now, not involved 315 00:13:28,559 --> 00:13:30,880 Speaker 1: day to day. But when he stepped back, did you say, well, 316 00:13:30,920 --> 00:13:34,040 Speaker 1: now I should be the sole CEO, or did you 317 00:13:34,080 --> 00:13:36,360 Speaker 1: say I want to co CEO? In addition to what 318 00:13:36,480 --> 00:13:38,040 Speaker 1: you know my own responsibile I. 319 00:13:38,000 --> 00:13:42,000 Speaker 3: Think in classic Read fashion, he modeled something that really worked, 320 00:13:42,040 --> 00:13:44,679 Speaker 3: and we did it together for a few years, so 321 00:13:44,720 --> 00:13:46,680 Speaker 3: I really got the sense of how well it works. 322 00:13:47,120 --> 00:13:49,400 Speaker 3: I think Greg Greg and I read and I worked 323 00:13:49,400 --> 00:13:51,280 Speaker 3: together for more than twenty years, and Greg and I 324 00:13:51,360 --> 00:13:53,720 Speaker 3: worked together for about fifteen years. So we had the same, 325 00:13:53,880 --> 00:13:57,480 Speaker 3: very similar shorthand we had complimentary skill sets, I believe, 326 00:13:57,520 --> 00:14:00,719 Speaker 3: and we push each other in a healthy way. And 327 00:14:00,840 --> 00:14:03,760 Speaker 3: what's cool about having a co ceo? You know, there's 328 00:14:04,320 --> 00:14:07,160 Speaker 3: saying you know, usually sayings are rooted in reality, it's 329 00:14:07,200 --> 00:14:09,640 Speaker 3: lonely at the top. I think there's something to that. 330 00:14:09,720 --> 00:14:12,079 Speaker 3: And having somebody to be able to kick around hard 331 00:14:12,120 --> 00:14:15,240 Speaker 3: problems with that isn't an employee or a board member 332 00:14:16,160 --> 00:14:17,720 Speaker 3: is really helpful. 333 00:14:17,760 --> 00:14:19,480 Speaker 2: Tell us about your background. Where were you born. 334 00:14:19,720 --> 00:14:24,320 Speaker 3: I was born in Long Branch, New Jersey. Was there 335 00:14:24,400 --> 00:14:26,600 Speaker 3: for a few years and my family moved to Phoenix, Arizona. 336 00:14:26,640 --> 00:14:27,560 Speaker 3: I was raised in Phoenix. 337 00:14:27,960 --> 00:14:30,040 Speaker 1: That's what in those days was out on usual ago 338 00:14:30,080 --> 00:14:32,440 Speaker 1: from New Jersey to Arizona. Why do they move to Arizona. 339 00:14:33,120 --> 00:14:36,680 Speaker 3: It's a great story. My grandfather, who was a Greek immigrant, 340 00:14:37,720 --> 00:14:41,560 Speaker 3: grew up reading cowboy novels. When he actually when he 341 00:14:41,600 --> 00:14:44,240 Speaker 3: came to America, he came to be a trail cook. 342 00:14:44,280 --> 00:14:46,800 Speaker 3: He thought that was a real job in America, and 343 00:14:46,840 --> 00:14:50,040 Speaker 3: he ended up being a cook cook. But he loved 344 00:14:50,480 --> 00:14:52,360 Speaker 3: the American West and he always talked about it. And 345 00:14:52,400 --> 00:14:54,520 Speaker 3: he took one vacation in his life and it was 346 00:14:54,560 --> 00:14:56,880 Speaker 3: to Arizona, and he saw a rodeo and he wore 347 00:14:56,920 --> 00:14:58,840 Speaker 3: a bolo tie every day till the day he died, 348 00:14:59,120 --> 00:15:02,040 Speaker 3: and talked about roode on Arizona. So when he passed away, 349 00:15:02,520 --> 00:15:04,080 Speaker 3: all eight of his kids moved to Arizona. 350 00:15:05,560 --> 00:15:08,560 Speaker 1: Really yeah, So how old were you when you moved 351 00:15:08,600 --> 00:15:09,040 Speaker 1: to Arizona? 352 00:15:09,120 --> 00:15:10,000 Speaker 3: I think six years old. 353 00:15:10,640 --> 00:15:12,920 Speaker 1: And did you say we're going to watch the cowboys, 354 00:15:13,000 --> 00:15:14,600 Speaker 1: We're going to be living at the cowboys or what 355 00:15:15,280 --> 00:15:15,920 Speaker 1: you think about that? 356 00:15:16,000 --> 00:15:17,840 Speaker 3: Yeah? I didn't. We didn't see any cowboys and we 357 00:15:17,880 --> 00:15:19,360 Speaker 3: got there either. It's an I was pretty developed. It 358 00:15:19,360 --> 00:15:21,240 Speaker 3: was a pretty small town back then, Arizona. 359 00:15:21,480 --> 00:15:22,840 Speaker 2: What did your family, your parents do? 360 00:15:23,600 --> 00:15:26,040 Speaker 3: My father passed away recently, but he is He was 361 00:15:26,040 --> 00:15:29,320 Speaker 3: a union electrician and my mom was to stay home mom. 362 00:15:29,400 --> 00:15:32,160 Speaker 3: She took care of myself and I had three older 363 00:15:32,200 --> 00:15:35,200 Speaker 3: sisters and a younger brother who I just recently lost him. 364 00:15:35,880 --> 00:15:38,200 Speaker 1: So when you were a boy, what were you interested? 365 00:15:38,280 --> 00:15:39,680 Speaker 1: You want to be an athlete? Did you want to 366 00:15:39,680 --> 00:15:41,480 Speaker 1: be an artist or what did you want to be? 367 00:15:41,560 --> 00:15:44,240 Speaker 3: I wanted to be from the earliest I remember actually 368 00:15:44,240 --> 00:15:45,880 Speaker 3: thinking about what I wanted to do. I wanted to 369 00:15:45,880 --> 00:15:49,920 Speaker 3: be a journalist from probably ten years old or so, 370 00:15:50,640 --> 00:15:54,880 Speaker 3: but loved movies and television. I we had my parents 371 00:15:54,920 --> 00:15:58,080 Speaker 3: were young, We were you know, with the couse was 372 00:15:58,080 --> 00:16:01,120 Speaker 3: pretty chaotic. I kind of like order, and I kind 373 00:16:01,120 --> 00:16:03,520 Speaker 3: of liked the order that I saw on television, Like 374 00:16:03,600 --> 00:16:06,280 Speaker 3: those families that sat down for dinner on TV. We 375 00:16:06,280 --> 00:16:10,040 Speaker 3: did not do that my growing up. And the schedule 376 00:16:10,080 --> 00:16:12,840 Speaker 3: of television, I found it to be very appealing. But 377 00:16:12,880 --> 00:16:14,880 Speaker 3: I really fell in love with movies and television at 378 00:16:14,920 --> 00:16:17,840 Speaker 3: a pretty young age, and through that saw a journalist 379 00:16:17,880 --> 00:16:20,080 Speaker 3: as heroes and I just wanted to be a journalist. 380 00:16:20,320 --> 00:16:22,160 Speaker 2: So you graduate from high school, then what did you do? 381 00:16:22,880 --> 00:16:25,520 Speaker 3: I did. I was the editor of the school newspaper 382 00:16:25,520 --> 00:16:27,720 Speaker 3: in high school, and I went to community college because 383 00:16:27,760 --> 00:16:32,080 Speaker 3: I couldn't afford a university at the time, and was 384 00:16:32,400 --> 00:16:36,400 Speaker 3: editing the college paper, the community college newspaper, Glendale Community College. 385 00:16:37,640 --> 00:16:42,400 Speaker 3: There I met a lot of really incredible people. Probably 386 00:16:42,400 --> 00:16:45,400 Speaker 3: one of the more influential ones was Ed Asner, who 387 00:16:45,480 --> 00:16:48,640 Speaker 3: kind of made this connection for me between entertainment and 388 00:16:48,680 --> 00:16:54,680 Speaker 3: politics and just opened my mind to a different world 389 00:16:54,720 --> 00:16:57,200 Speaker 3: to do now. I also had an epiphanade about that 390 00:16:57,240 --> 00:16:59,720 Speaker 3: time that I wasn't a very good writer, so likely 391 00:16:59,760 --> 00:17:01,560 Speaker 3: I was not going to be a professional journalist. 392 00:17:01,880 --> 00:17:04,959 Speaker 2: So okay, So eventually you got a job at a 393 00:17:05,040 --> 00:17:05,720 Speaker 2: video store. 394 00:17:05,880 --> 00:17:07,360 Speaker 3: That's what I was. That was my part time job 395 00:17:07,359 --> 00:17:10,320 Speaker 3: when I was going to Glendall Community College, and then 396 00:17:10,560 --> 00:17:13,480 Speaker 3: when I realized I wasn't going to pursue that degree, 397 00:17:13,520 --> 00:17:15,639 Speaker 3: I kind of dropped out and it was meant to 398 00:17:15,640 --> 00:17:17,399 Speaker 3: be a year, but it turned out to be a 399 00:17:17,440 --> 00:17:18,479 Speaker 3: permanent move to business. 400 00:17:18,560 --> 00:17:21,639 Speaker 1: So I understand that you became so knowledgeable about videos 401 00:17:21,640 --> 00:17:23,440 Speaker 1: that when people come in and say what should I rent, 402 00:17:23,720 --> 00:17:25,679 Speaker 1: you actually had actually seen a lot of these videos, 403 00:17:25,680 --> 00:17:27,760 Speaker 1: and you could make recommendations. People came in because they 404 00:17:27,840 --> 00:17:29,439 Speaker 1: liked your recommendations. I wanted to see what you're going 405 00:17:29,520 --> 00:17:29,959 Speaker 1: to recommend. 406 00:17:30,119 --> 00:17:33,840 Speaker 3: It's true. I again, for no reason, my mother, when 407 00:17:33,840 --> 00:17:35,680 Speaker 3: we did not have the money for it, my mom 408 00:17:35,720 --> 00:17:37,920 Speaker 3: bought a VCR. The early time, I didn't know anyone 409 00:17:37,920 --> 00:17:42,400 Speaker 3: else who had a VCR, and serendipitously, the second video 410 00:17:42,400 --> 00:17:44,560 Speaker 3: store in the state of Arizona opened up a few 411 00:17:44,560 --> 00:17:48,040 Speaker 3: blocks from my house, so I started you know, devouring 412 00:17:48,760 --> 00:17:50,840 Speaker 3: movies by rent renting them. And then I get a 413 00:17:50,880 --> 00:17:54,360 Speaker 3: job at that store and the stores are empty all day, 414 00:17:54,400 --> 00:17:56,240 Speaker 3: so you can watch movies all day. I watched everything 415 00:17:56,240 --> 00:17:58,320 Speaker 3: in the store, and I had a pretty good memory 416 00:17:58,320 --> 00:18:00,879 Speaker 3: for it back then, and I could remember what people 417 00:18:00,960 --> 00:18:02,840 Speaker 3: liked when they brought something back, and I remember that 418 00:18:02,840 --> 00:18:05,000 Speaker 3: that was like this, and this was like that. And 419 00:18:05,080 --> 00:18:07,600 Speaker 3: sometimes the store would get so busy, but people would 420 00:18:07,600 --> 00:18:09,080 Speaker 3: wait for me so they could ask me what to 421 00:18:09,119 --> 00:18:09,679 Speaker 3: watch tonight. 422 00:18:09,920 --> 00:18:11,480 Speaker 1: So did you go to the owner of the store 423 00:18:11,520 --> 00:18:13,080 Speaker 1: and say I should be the manager of the store. 424 00:18:13,119 --> 00:18:15,320 Speaker 1: I'm so popular here, or how did you think you 425 00:18:15,320 --> 00:18:18,520 Speaker 1: were an advance your career by being knowledgeable about these videos? 426 00:18:18,600 --> 00:18:22,520 Speaker 3: Well, it wasn't a plan. He came to me and said, hey, 427 00:18:22,600 --> 00:18:25,919 Speaker 3: we love what you do here, and my wife's had 428 00:18:25,920 --> 00:18:27,639 Speaker 3: a couple of kids since you've been here, and the 429 00:18:27,760 --> 00:18:30,000 Speaker 3: business has been growing. It grew to several store chain 430 00:18:30,560 --> 00:18:31,760 Speaker 3: and he goes, I never seen my wife and I 431 00:18:31,800 --> 00:18:33,440 Speaker 3: need to take some time off, and would you take 432 00:18:33,480 --> 00:18:35,960 Speaker 3: things over? And he gave me the keys to a 433 00:18:36,040 --> 00:18:39,040 Speaker 3: video rental chain. And it was an MBA course in 434 00:18:39,040 --> 00:18:40,800 Speaker 3: film school all wrapped into one for me. 435 00:18:40,880 --> 00:18:43,200 Speaker 2: How did you go from there to Netflix? 436 00:18:43,560 --> 00:18:46,560 Speaker 3: Well, in between, I went to home video distribution, so 437 00:18:46,640 --> 00:18:49,560 Speaker 3: the companies that sold the vhs and DVDs to the 438 00:18:49,640 --> 00:18:53,399 Speaker 3: video stores. And while I was there, I did a 439 00:18:53,440 --> 00:18:57,920 Speaker 3: pretty unique deal with Warner Brothers and Sony to revenue 440 00:18:57,920 --> 00:19:01,080 Speaker 3: share DVDs, which just hadn't been done before. And read 441 00:19:01,160 --> 00:19:04,000 Speaker 3: Hastings It got written about it in a trade magazine 442 00:19:04,040 --> 00:19:06,160 Speaker 3: and read read it and said this is what we need. 443 00:19:06,359 --> 00:19:08,200 Speaker 3: And so a mutual friend introduced us. 444 00:19:08,280 --> 00:19:10,480 Speaker 1: But if that article hadn't been in that trade press, 445 00:19:10,480 --> 00:19:12,000 Speaker 1: you could still be at that DVD story. 446 00:19:12,040 --> 00:19:14,920 Speaker 3: You think there is still one by the way, it's 447 00:19:14,960 --> 00:19:17,400 Speaker 3: still open that first store, that one store is still 448 00:19:17,440 --> 00:19:17,920 Speaker 3: open there. 449 00:19:18,280 --> 00:19:21,600 Speaker 1: The company is extremely successful. The problems you may have 450 00:19:21,600 --> 00:19:23,840 Speaker 1: had you seem to be behind you. So what is 451 00:19:23,880 --> 00:19:25,680 Speaker 1: the future of Netflix? Do you think you can keep 452 00:19:25,680 --> 00:19:28,920 Speaker 1: growing the subscriber base or how do you view your 453 00:19:29,480 --> 00:19:32,680 Speaker 1: future success? What is your goal to be in the future. 454 00:19:32,440 --> 00:19:34,720 Speaker 3: To do well, I think we've got plenty of room 455 00:19:34,760 --> 00:19:37,760 Speaker 3: to grow both the subscriber base and revenue. For a 456 00:19:37,800 --> 00:19:40,000 Speaker 3: lot with a long runway, two hundred and seventy seven 457 00:19:40,040 --> 00:19:42,399 Speaker 3: million sounds like a lot of folks, But you know 458 00:19:42,480 --> 00:19:44,800 Speaker 3: you could double that and still not be halfway to 459 00:19:44,840 --> 00:19:48,040 Speaker 3: what the pay television universe was. And this is a 460 00:19:48,119 --> 00:19:51,560 Speaker 3: much better product economically and choice and control and all 461 00:19:51,600 --> 00:19:53,240 Speaker 3: the things that go into it. So I think there's 462 00:19:53,280 --> 00:19:55,800 Speaker 3: plenty of room to continue to grow the spaces that 463 00:19:55,840 --> 00:19:58,760 Speaker 3: were in you know, professional television and film and games. 464 00:19:59,640 --> 00:20:02,760 Speaker 3: This is a six hundred billion dollar consumer spend market 465 00:20:02,760 --> 00:20:05,080 Speaker 3: that we're about five percent of, and we go only 466 00:20:05,119 --> 00:20:08,280 Speaker 3: get about ten percent of screen time today, so about 467 00:20:08,359 --> 00:20:10,880 Speaker 3: ten percent of the time you're watching something on television, 468 00:20:10,920 --> 00:20:12,920 Speaker 3: you're watching Netflix, So a lot of room to grow 469 00:20:12,960 --> 00:20:13,359 Speaker 3: both of them. 470 00:20:13,400 --> 00:20:15,600 Speaker 1: You are always being pitched on new projects that you're 471 00:20:15,600 --> 00:20:17,680 Speaker 1: going to presumably do in the future. There are other areas. 472 00:20:17,680 --> 00:20:21,000 Speaker 1: You're in sports now, you're in games. I guess you'd 473 00:20:21,000 --> 00:20:25,119 Speaker 1: say you're you're into you know, the traditional content you have. 474 00:20:25,640 --> 00:20:27,320 Speaker 2: Are you going to do news at some point? 475 00:20:28,119 --> 00:20:30,200 Speaker 3: It's a pretty well served market. There's a lot of 476 00:20:30,280 --> 00:20:33,000 Speaker 3: choices of how to get to news. So it hasn't 477 00:20:33,040 --> 00:20:35,080 Speaker 3: been an expertise of ours yet, so we're not really 478 00:20:35,200 --> 00:20:35,720 Speaker 3: looking at that. 479 00:20:36,240 --> 00:20:38,239 Speaker 1: Hey, the most important thing I think people really want 480 00:20:38,320 --> 00:20:40,960 Speaker 1: is interview shows. Yeah, you have enough interview shows on 481 00:20:41,080 --> 00:20:41,760 Speaker 1: your yours. 482 00:20:41,920 --> 00:20:43,359 Speaker 3: I have a feeling this would be a good pilot 483 00:20:43,359 --> 00:20:44,000 Speaker 3: for ya. 484 00:20:44,400 --> 00:20:46,879 Speaker 1: What is the last thing you've watched on Netflix? And 485 00:20:47,320 --> 00:20:49,119 Speaker 1: if I say, all of a sudden, I want to 486 00:20:49,160 --> 00:20:51,399 Speaker 1: watch one thing on Netflix, what do you think I 487 00:20:51,440 --> 00:20:52,040 Speaker 1: should watch? 488 00:20:52,920 --> 00:20:55,280 Speaker 3: For the first part of that is the thing I 489 00:20:55,400 --> 00:20:57,160 Speaker 3: like to watch the most on Netflix is the thing 490 00:20:57,280 --> 00:20:59,920 Speaker 3: that my wife and I can watch together. We do 491 00:21:00,080 --> 00:21:02,719 Speaker 3: not have similar taste in movies and television that everyone's 492 00:21:02,720 --> 00:21:04,440 Speaker 3: in all you find something that you really love to 493 00:21:04,480 --> 00:21:07,160 Speaker 3: watch together. And for us, that was the new season 494 00:21:07,160 --> 00:21:09,520 Speaker 3: of Emily in Paris that we just binged through in 495 00:21:09,600 --> 00:21:11,960 Speaker 3: two sittings and she loved it and it was a great, 496 00:21:12,040 --> 00:21:15,159 Speaker 3: great fun for me too. And for you. We have 497 00:21:15,200 --> 00:21:20,119 Speaker 3: a new show coming in just starting this week called Monsters, 498 00:21:20,240 --> 00:21:24,480 Speaker 3: the Eric and Lyleman Ninda story Ryan Murphy who created Dahmer, 499 00:21:25,160 --> 00:21:26,879 Speaker 3: and it's a phenomenal drama. 500 00:21:27,320 --> 00:21:30,520 Speaker 1: Let's talk about your future. Yeah, you're now in the 501 00:21:30,520 --> 00:21:31,600 Speaker 1: company for how many years? 502 00:21:31,800 --> 00:21:33,560 Speaker 3: I'll be twenty five, nicks to carp. 503 00:21:33,400 --> 00:21:36,720 Speaker 2: So twenty five years and you were how sixty years old? 504 00:21:37,280 --> 00:21:40,600 Speaker 1: Okay, well that's a teenager to me. So you're very young. 505 00:21:41,000 --> 00:21:43,320 Speaker 1: So do you have any interest in ever, Let's say 506 00:21:43,440 --> 00:21:46,520 Speaker 1: going to government, public service, running for office, being an ambassador, 507 00:21:46,640 --> 00:21:47,080 Speaker 1: or anything. 508 00:21:47,359 --> 00:21:49,280 Speaker 3: I would I would love to do something in public 509 00:21:49,280 --> 00:21:51,479 Speaker 3: service that I can't see myself running for office, but 510 00:21:51,520 --> 00:21:53,600 Speaker 3: I would love just to be of service to the country. 511 00:21:53,960 --> 00:21:55,080 Speaker 2: So at some point you might do that. 512 00:21:55,320 --> 00:21:57,400 Speaker 1: Y at some point, did your parents live to see 513 00:21:57,400 --> 00:21:59,720 Speaker 1: your success and did they ever tell you how proud 514 00:21:59,720 --> 00:22:00,359 Speaker 1: they were of you? 515 00:22:02,320 --> 00:22:06,880 Speaker 3: My dad passed away two years ago, and he did 516 00:22:07,040 --> 00:22:10,360 Speaker 3: see the success. And I don't think he totally understood 517 00:22:10,359 --> 00:22:13,919 Speaker 3: what I did, but he knew that it was pretty cool, 518 00:22:14,560 --> 00:22:16,680 Speaker 3: and he knew because people would tell him, that's pretty 519 00:22:16,680 --> 00:22:20,680 Speaker 3: cool what your son does. And my mom unfortunately passed 520 00:22:20,720 --> 00:22:24,560 Speaker 3: away before Netflix became what it is today. But at 521 00:22:24,600 --> 00:22:27,720 Speaker 3: the beginning we first started, you know, House of Cards 522 00:22:27,800 --> 00:22:30,520 Speaker 3: Days was a show up on all the award shows. 523 00:22:30,760 --> 00:22:33,119 Speaker 3: My mom likes to like to watch a lot of television, 524 00:22:33,560 --> 00:22:35,760 Speaker 3: and so she would always love to see me on 525 00:22:35,800 --> 00:22:37,840 Speaker 3: television at an award show, and she would call me 526 00:22:37,880 --> 00:22:39,120 Speaker 3: every once in a while and say, Hey, I'm watching 527 00:22:39,160 --> 00:22:40,960 Speaker 3: this award show. Are you there? I go, No, that's 528 00:22:41,000 --> 00:22:43,280 Speaker 3: the SP's mom. I'm not part of the SPS. So 529 00:22:43,480 --> 00:22:45,119 Speaker 3: but she got she really got a kick out of 530 00:22:45,119 --> 00:22:46,920 Speaker 3: it all, so yeah, but they didn't get to see 531 00:22:46,920 --> 00:22:48,560 Speaker 3: all of it, but they got a sense of it. 532 00:22:48,600 --> 00:22:50,680 Speaker 1: And did they have a Netflix subscription to do? Buy 533 00:22:50,720 --> 00:22:51,960 Speaker 1: them one or they already had one? 534 00:22:52,520 --> 00:22:53,600 Speaker 3: They I bought them one. 535 00:22:53,640 --> 00:22:55,840 Speaker 1: And what would you like to see as your legacy 536 00:22:55,920 --> 00:23:00,560 Speaker 1: to the world of entertainment? What do you think legacy 537 00:23:00,680 --> 00:23:01,560 Speaker 1: should be or will be? 538 00:23:02,440 --> 00:23:06,320 Speaker 3: You know, I hope it has been that or is 539 00:23:06,440 --> 00:23:09,080 Speaker 3: or will be or how every want to praise it 540 00:23:09,119 --> 00:23:13,160 Speaker 3: will be the guy who put the audience first. Tony 541 00:23:13,200 --> 00:23:15,000 Speaker 3: Bennett was a great friend of mine and he was 542 00:23:15,040 --> 00:23:17,840 Speaker 3: my hero, and he said it bestie said, the audience 543 00:23:18,160 --> 00:23:20,679 Speaker 3: is the most important member of the band. And I 544 00:23:20,720 --> 00:23:23,760 Speaker 3: feel like what I want approach that we put into 545 00:23:23,880 --> 00:23:26,320 Speaker 3: Netflix and into the programming, into our films and TV 546 00:23:26,720 --> 00:23:28,840 Speaker 3: and our games, is that we put the audience first 547 00:23:28,880 --> 00:23:31,000 Speaker 3: and think about how are they going to love it? 548 00:23:31,080 --> 00:23:31,399 Speaker 2: First? 549 00:23:31,520 --> 00:23:33,960 Speaker 3: We'll build a business model around it for but think 550 00:23:33,960 --> 00:23:35,600 Speaker 3: about how will you please in the audience first? 551 00:23:37,000 --> 00:23:39,520 Speaker 2: Thanks for listening to hear more of my interviews. You 552 00:23:39,560 --> 00:23:43,680 Speaker 2: can subscribe and download my podcast on Spotify, Apple, or 553 00:23:43,720 --> 00:23:44,560 Speaker 2: wherever you listen.