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The Knowledge Project

Netflix Founder Reed Hastings on Scaling High-Trust Culture & Bold Judgment

10 Jun 2025

Transcription

Full Episode

0.031 - 26.719 Reed Hastings

During my 25 years of Netflix, that was the dominant non-family thing in my life. I think the big struggle we had in the early days was the contrast of loyalty and what that meant versus performance. And we realized, OK, professional sports teams have a clear bargain of your sort of playing for your position each season. And it is a performance culture.

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26.779 - 58.168 Reed Hastings

But the team can be quite close and can be very supportive of each other. And we came to think of loyalty as a stabilizer. but that ultimately it was about performance. And that helped us clarify our own values, that we were more valuing growth and achievement. And then when you get that and everybody's working towards the company's success, it's a very powerful force.

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60.815 - 86.714 Shane Parrish

Welcome to The Knowledge Project. I'm your host, Shane Parish. In a world where knowledge is power, this podcast is your toolkit for mastering the best of what other people have already figured out. Today's guest is Reed Hastings, mathematician, Peace Corps teacher, serial founder, and the contrarian behind Netflix. In 1997, he mailed a single CD to himself to test a hunch.

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87.135 - 92.965 Shane Parrish

Over the next 25 years, he led Netflix from postage stamp DVD experiments

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92.945 - 115.459 Shane Parrish

to a streaming powerhouse that rebuffed an early Amazon buyout, published the viral 127-slide culture deck that codified radical freedoms and the keeper test, and placed audacious bets from a $100 million commitment on House of Cards with no pilot episodes to greenlighting Squid Games, which became Netflix's most watched series on record.

115.439 - 134.781 Shane Parrish

Since stepping back as co-CEO in 2023, Hastings has applied the same playbook to Utah's Powder Mountain, branding it the Uncrowded Mountain, while doubling down on charter schools and AI tutors he calls venture capital for kids. Throughout it all, he insists that culture is the true engine of scale and resilience.

134.761 - 160.026 Shane Parrish

Discover in this conversation how he builds and protects A-player cultures, outflanks giants by rewriting the rules, and ports Silicon Valley principles into brick and mortar ventures and classrooms alike. I really enjoyed this conversation with Reed, and I hope you do too. It's time to listen and learn. I want to start with what you're obsessed with lately.

160.208 - 188.54 Reed Hastings

Well, let's see, several things. So I would say during my 25 years of Netflix, that was the dominant non-family thing in my life. And that was like one big thing with tiny little stuff around the edge. And now my life is more varied. So I have a big chunk of focus on charter schools. I'm on a half dozen nonprofits online. Been working on charter schools in U.S. education for two decades.

189.362 - 199.53 Reed Hastings

A big chunk on Powder Mountain, which is incredibly joyful. And then smaller chunks on a bunch of other philanthropic projects.

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