good morning believe nation today’s
message is be at the edge of chaos over
to you Reed Hastings if we’re not
creative enough if we don’t push it hard
enough you know we’ve got to have some
failures and so we don’t really want to
have all hits I’m gladly God the first
ones are hits but you know the sign that
you’re right at the edge of chaos the
edge of creativity is that some stuff
doesn’t work now why do you want to be
there cuz networks don’t want to be
there life’s short I mean you know why a
way of doing this we’re like we’ll want
to have a difference boy right now and
so it’s a it’s an 8 that’s wanting to to
push the edge to create something that
we the people are proud of and that they
enjoy this is a message I think
entrepreneurs can relate to really
really well we want to do something
different we want to have a big vision
we want to be bold we want to break
barriers we want to do something that
people can be proud of and that we can
be proud of that our grandkids will be
proud of that’s what we do is
entrepreneurs right word we don’t want
to work in some boring job for the rest
of our lives we want to take ownership
we want to create something meaningful
in parkville special that’s what we want
to do is entrepreneurs and I think what
gets in our way a lot of times is fear I
think the fear of it not working out the
fear of being judged the fear of losing
money the fear gets in the way right and
often we will rationalize the fear with
a practical excuse will convince
ourselves that you can’t do that because
of XYZ right like I can’t go to that
conference because I’m too busy you know
I got so much going on here you know I
can’t do that calm cuz I can’t take that
phone call got such a crazy busy
schedule right well come up with a
reason why we can’t do something but the
real reason is we’re just afraid and I
think hearing messages like this from
weed can hopefully push you through the
fear and what really helped me was
thinking about I don’t want to live with
regret I’d want to look back on my life
and think that I really wish that I said
yes an opportunity that thing that I
talked myself down from because I
thought it was a practical thing to do
but real is just afraid I don’t want
want to live with regret of that thing I
wanted to go for it and so by me looking
back on my life at age 90 or whatever it
is it helps just remind me that the fear
that we have is short term is is
something that needs to be broken
through if you want to go off and do the
big thing have the big impact so beyond
the edge of chaos I love it so the
question day today is I’m curious for
you guys what are you doing that is
putting you on the edge of chaos leave
in the comments below I’m super curious
to find out thank you guys so much for
watching I believe in you I hope we
continue to believe in yourself and
whatever your one word is and I’ll see
you again tomorrow morning for another
shot of espresso hey guys we’re looking
at doing a reed hastings top 10 rules
here’s a quick sneak peek bonus view at
some of the clips we’re looking at I’d
love to know your thoughts in the clips
let me know interesting about you the
way you conduct your business is that
when when stuff doesn’t work out you
apologize you go and say we made it I
made a mistake and all that what is that
the first time you had to go out there
and say sorry this was wrong and it was
I remember with the increase the rate
increase right then you’re like not
forget about it like what was I
experienced Ike for you as a boss when
you’re like I have to go in on this
going through marriage counseling 20
years ago was really how I moved to
become a better manager and leader
really and yet you know this marriage
counselor was able to get me to see that
I was often lying to myself and to my
wife you know saying oh family is the
most important thing and I’d stay at
work all night and that the value of
honesty is that people can take honesty
even if it’s not necessarily what they
want to hear if it’s really sincere 3
and 0 4 were growing really fast 05
blockbuster attacks and so we thought we
were very clever we came up with a
number of ways to counter-attack and
remember that everybody’s got every DVD
so you basically the same clock bust or
nuts had the same content offering
because it’s non exclusive licensing to
get DVDs
so we could differentiate on our service
fulfillment levels where ninety-nine
percent and there’s were 89 but that’s
like a really abstract for a customer
you know thinking of signing up doesn’t
mean anything right and then they
discounted massively so I was like half
hour price and so we were losing share
so I you know we were struggling what to
do about it so we did three or four big
efforts one is in the end of 05 we added
Netflix friends which was our own social
network and remember no five you know
Facebook’s just on a few universities ok
so our own social network amongst our
members and if you enabled each other
you could see what each other we’re
renting and rating and we thought wow
the viral effects of this would be
really powerful etc we added ad sales
back in the day was like a yahoo type
banners and you could have we could have
we sold banners you know above the the
choosing interface we added used DVD
sales on our site to consumers so you
know of course we had some excess DVDs
from four years ago so we added an
operation to sell them for four bucks a
pop and you know two different logistics
but we added all that and we added a red
envelope entertainment which was a group
that we brought in to buy DVDs by films
out of sundance and similar festivals to
them publish them on DVD so getting into
content so we did these four efforts and
each one you know was a dozen people 15
people and made us feel great I mean
employees loved him because you know
here was a tangible thing that was not
just ninety eight percent versus 89%
here was the thing that they couldn’t do
or weren’t doing it was a differentiator
right and wasn’t management so clever
and we went through these waves of
battles and 06 and 07 and in the end we
won they ended up closing down their
online thing and two years later going
completely bankrupt but we looked back
and none of those four efforts made any
contribution to our victory and one by
one we had closed them down along the
way every
single one of those four and so in
hindsight we realized when attacked we
should retreat to do the core better and
not try to broaden the surface of attack
essentially and it was a great lesson
for us of focus and so now when people
say aren’t you getting into news or
sports were like absolutely not you know
and we’re really confident of our answer
like movies and TV shows a global basis
enormous market and so we’re much less
subject to being prone to go off and
chase the shiny object to try to have
something in a checklist to
differentiate and to trust and in
hindsight if we had just gone from like
ninety-eight percent perfect to 99.9 we
would have done a lot more for the
business and you know and it’s hard work
its operational logistics how to get
DVDs not to break I mean the amount of
polycarbonate analysis we had to do is
all this stuff we would have beaten
blockbusters sooner than we did this
concept of binge viewing that that
seemingly has has altered people’s the
way people consume contact you talk a
little bit more about that and what he
how did you decide did you plan for that
and and how do you exploit that and no
really binge viewing we counter planned
on it because we tried to kill the term
because you know binges associated with
you know negative things really and we
thought this wasn’t good and what we
didn’t realize is that the term would
come to be gentle or interpreted and the
fact that it was a little bit aggressive
help it you know catch fire but in the
first real binge viewing was DVD TV sets
on DVD and people would get Sopranos and
the wire and madmen on DVD and watched
ten episodes so that we felt the
behavior just on DVD shipments going to
TV series and then when you brought that
online it really accelerated it and you
know when you think about it when you
buy a book you know 10 or 15 chapters in
a book and it’s not remarkable that
you’re allowed to read three chapters
one night one the next night and five
chapters the next day yeah you know that
basic thing of human control
love watching on your schedule instead
of on the programmer schedule in
hindsight it’s pretty basic so linear TV
as we know it will be as much of a relic
in 20 years as the fixed-line telephone
you know like some of your parents will
still have one but you know most people
you know it’s it’s pretty irrelevant for
message is be at the edge of chaos over
to you Reed Hastings if we’re not
creative enough if we don’t push it hard
enough you know we’ve got to have some
failures and so we don’t really want to
have all hits I’m gladly God the first
ones are hits but you know the sign that
you’re right at the edge of chaos the
edge of creativity is that some stuff
doesn’t work now why do you want to be
there cuz networks don’t want to be
there life’s short I mean you know why a
way of doing this we’re like we’ll want
to have a difference boy right now and
so it’s a it’s an 8 that’s wanting to to
push the edge to create something that
we the people are proud of and that they
enjoy this is a message I think
entrepreneurs can relate to really
really well we want to do something
different we want to have a big vision
we want to be bold we want to break
barriers we want to do something that
people can be proud of and that we can
be proud of that our grandkids will be
proud of that’s what we do is
entrepreneurs right word we don’t want
to work in some boring job for the rest
of our lives we want to take ownership
we want to create something meaningful
in parkville special that’s what we want
to do is entrepreneurs and I think what
gets in our way a lot of times is fear I
think the fear of it not working out the
fear of being judged the fear of losing
money the fear gets in the way right and
often we will rationalize the fear with
a practical excuse will convince
ourselves that you can’t do that because
of XYZ right like I can’t go to that
conference because I’m too busy you know
I got so much going on here you know I
can’t do that calm cuz I can’t take that
phone call got such a crazy busy
schedule right well come up with a
reason why we can’t do something but the
real reason is we’re just afraid and I
think hearing messages like this from
weed can hopefully push you through the
fear and what really helped me was
thinking about I don’t want to live with
regret I’d want to look back on my life
and think that I really wish that I said
yes an opportunity that thing that I
talked myself down from because I
thought it was a practical thing to do
but real is just afraid I don’t want
want to live with regret of that thing I
wanted to go for it and so by me looking
back on my life at age 90 or whatever it
is it helps just remind me that the fear
that we have is short term is is
something that needs to be broken
through if you want to go off and do the
big thing have the big impact so beyond
the edge of chaos I love it so the
question day today is I’m curious for
you guys what are you doing that is
putting you on the edge of chaos leave
in the comments below I’m super curious
to find out thank you guys so much for
watching I believe in you I hope we
continue to believe in yourself and
whatever your one word is and I’ll see
you again tomorrow morning for another
shot of espresso hey guys we’re looking
at doing a reed hastings top 10 rules
here’s a quick sneak peek bonus view at
some of the clips we’re looking at I’d
love to know your thoughts in the clips
let me know interesting about you the
way you conduct your business is that
when when stuff doesn’t work out you
apologize you go and say we made it I
made a mistake and all that what is that
the first time you had to go out there
and say sorry this was wrong and it was
I remember with the increase the rate
increase right then you’re like not
forget about it like what was I
experienced Ike for you as a boss when
you’re like I have to go in on this
going through marriage counseling 20
years ago was really how I moved to
become a better manager and leader
really and yet you know this marriage
counselor was able to get me to see that
I was often lying to myself and to my
wife you know saying oh family is the
most important thing and I’d stay at
work all night and that the value of
honesty is that people can take honesty
even if it’s not necessarily what they
want to hear if it’s really sincere 3
and 0 4 were growing really fast 05
blockbuster attacks and so we thought we
were very clever we came up with a
number of ways to counter-attack and
remember that everybody’s got every DVD
so you basically the same clock bust or
nuts had the same content offering
because it’s non exclusive licensing to
get DVDs
so we could differentiate on our service
fulfillment levels where ninety-nine
percent and there’s were 89 but that’s
like a really abstract for a customer
you know thinking of signing up doesn’t
mean anything right and then they
discounted massively so I was like half
hour price and so we were losing share
so I you know we were struggling what to
do about it so we did three or four big
efforts one is in the end of 05 we added
Netflix friends which was our own social
network and remember no five you know
Facebook’s just on a few universities ok
so our own social network amongst our
members and if you enabled each other
you could see what each other we’re
renting and rating and we thought wow
the viral effects of this would be
really powerful etc we added ad sales
back in the day was like a yahoo type
banners and you could have we could have
we sold banners you know above the the
choosing interface we added used DVD
sales on our site to consumers so you
know of course we had some excess DVDs
from four years ago so we added an
operation to sell them for four bucks a
pop and you know two different logistics
but we added all that and we added a red
envelope entertainment which was a group
that we brought in to buy DVDs by films
out of sundance and similar festivals to
them publish them on DVD so getting into
content so we did these four efforts and
each one you know was a dozen people 15
people and made us feel great I mean
employees loved him because you know
here was a tangible thing that was not
just ninety eight percent versus 89%
here was the thing that they couldn’t do
or weren’t doing it was a differentiator
right and wasn’t management so clever
and we went through these waves of
battles and 06 and 07 and in the end we
won they ended up closing down their
online thing and two years later going
completely bankrupt but we looked back
and none of those four efforts made any
contribution to our victory and one by
one we had closed them down along the
way every
single one of those four and so in
hindsight we realized when attacked we
should retreat to do the core better and
not try to broaden the surface of attack
essentially and it was a great lesson
for us of focus and so now when people
say aren’t you getting into news or
sports were like absolutely not you know
and we’re really confident of our answer
like movies and TV shows a global basis
enormous market and so we’re much less
subject to being prone to go off and
chase the shiny object to try to have
something in a checklist to
differentiate and to trust and in
hindsight if we had just gone from like
ninety-eight percent perfect to 99.9 we
would have done a lot more for the
business and you know and it’s hard work
its operational logistics how to get
DVDs not to break I mean the amount of
polycarbonate analysis we had to do is
all this stuff we would have beaten
blockbusters sooner than we did this
concept of binge viewing that that
seemingly has has altered people’s the
way people consume contact you talk a
little bit more about that and what he
how did you decide did you plan for that
and and how do you exploit that and no
really binge viewing we counter planned
on it because we tried to kill the term
because you know binges associated with
you know negative things really and we
thought this wasn’t good and what we
didn’t realize is that the term would
come to be gentle or interpreted and the
fact that it was a little bit aggressive
help it you know catch fire but in the
first real binge viewing was DVD TV sets
on DVD and people would get Sopranos and
the wire and madmen on DVD and watched
ten episodes so that we felt the
behavior just on DVD shipments going to
TV series and then when you brought that
online it really accelerated it and you
know when you think about it when you
buy a book you know 10 or 15 chapters in
a book and it’s not remarkable that
you’re allowed to read three chapters
one night one the next night and five
chapters the next day yeah you know that
basic thing of human control
love watching on your schedule instead
of on the programmer schedule in
hindsight it’s pretty basic so linear TV
as we know it will be as much of a relic
in 20 years as the fixed-line telephone
you know like some of your parents will
still have one but you know most people
you know it’s it’s pretty irrelevant for
Please follow and like us: