Monday October 31, 2016

Where Netflix Sees Potential And Risks

As odd as it may seem, listening to Reed Hastings explain how his company greenlights a show in terms of joy, made absolute perfect sense in a joy-joy kind of way.

MR. BERMAN: Take us through the economics of greenlighting a show.

MR. HASTINGS: We’ll collect this year about $8 billion of customers’ money. We say that money’s in trust to create joy. We have to turn that into the most joy possible. We look and we say, for every show, if a show cost $100 million, how much joy, how much viewing did it create? If it costs $50 million or $200 million, of course you want different amounts of joy. So we look at it as how much joy can we create of your money. And if we turn it into joy effectively, then you’re happy and you tell your friends and we grow.