These leadership takeaways are part of a new primetime series, “CNBC Leader’s Playbook,” premiering January 7 at 10pm ET/PT. Hosted by CNBC’s Julia Boorstin, the series goes inside the minds of the world’s top business leaders to uncover how lasting success is built.
Ted Sarandos didn’t help build Netflix by following a rulebook. As co-CEO, he made bold bets when the future was uncertain, trusted talented people to make big decisions, and relied on intuition as well as data.
These five leadership moves demonstrate how Sarandos has created a culture that is fearless, challenges assumptions, and continues to reinvent entertainment.
1) Swing wide
When content deals became difficult to close, Sarandos felt Netflix needed to start producing its own original programming.
He took the plunge and paid $100 million for two seasons of “House of Cards” in 2011.
He thought that if he could distribute the series on Netflix, he could secure the long-term future of his business.
It was a risky gamble, but it paid off.
The series was a huge hit, and this decision changed the trajectory of the streamer.
I was worried that if I started small, even if I made the right choices, I wouldn’t really get enough credit because it would have little impact on my business.
Ted Sarandos
Netflix Co-CEO
2) Empower people and then get out of their way.
Netflix’s culture of freedom and responsibility — trusting smart people to make the right decisions and holding them accountable for their outcomes — comes from co-founder Reed Hastings, and Sarandos has reinforced it.
He says he has built a company where teams from 50 countries make their own creative decisions. There’s no micromanagement or bureaucracy.
Choose the best people, give them the tools to do their best work in life, and get out of their way.
Ted Sarandos
Netflix Co-CEO
3) Lead with intuition based on data
Netflix’s success combines art and science.
Sarandos believes that data should support creativity, not dictate it.
He says the world’s biggest hits start with instinct, not algorithms.
You have to start with a hunch, because if you start with data, you might end up in a fundamentally different place than you thought.
Ted Sarandos
Netflix Co-CEO
4) Build a culture of fearlessness
Netflix thrives on experimentation.
Take big turns, learn quickly, and move on when something doesn’t work.
What starts as a risk can quickly become a global smash hit.
do not be afraid. There’s a lot of trial and error in this business.
Ted Sarandos
Netflix Co-CEO
5) Challenge conventional wisdom
Netflix leaders are encouraged to challenge decisions.
Sarandos believes that healthy debate and dissent is essential to fostering innovation, and that the best ideas emerge when someone dares to question the norm.
You have to create an environment where people can say, “Ted, I understand how you feel, but what about this?”
Ted Sarandos
Netflix Co-CEO
Watch Ted Sarandos’ interview on CNBC Leaders Playbook. This is a new primetime series hosted by Julia Boorstin that features candid conversations with the world’s top business leaders about how to build lasting success.
Episode Premiere (Netflix): January 7 at 10pm ET/PT on CNBC.
All new episodes are released on Wednesdays.
