From a movie rental business to an online streaming service provider, Netflix has flapped its wings and remained a top choice for user’s streaming needs. It has generated consistent returns by its variety of networks, movies, shows, documentaries, and more to its subscribers.

But what could have led to this enormous growth?

To learn how Netflix has evolved since birth, we need to understand its initial strategies. Not once or twice has the company reinvented itself to stay pertinent to its users.

It’s all about making mistakes, dehumanizing the problems, and making tough decisions. And indeed, its success is remarkable!

Netflix came up with values in an inventive way that met underserved customers who seemed to be secluded from the idealized construction of their business incumbent. We can all learn from its achievements.

Below is a timeline that explains how Netflix established its value and excellence in its operation since birth.

Connecting with customers

Netflix has a surefire technique; content marketing. Understanding users improves retention and magnifies the network. As a result, it has maintained its momentum, with an impressive number of Netflix shows to watch, documentaries, anime, and top-notch movies in the modern era.

This never came by chance. You cannot decide without customers’ needs in place. We can refer to this as endurance by adaptation.

It was all about shifting from the VHS tapes and diving into the DVD technologies at Netflix’s birth. But Netflix swiftly made its way from DVD to online streaming. They stayed relevant by creating sophisticated algorithms that target what each user is viewing to understand what the users want. This has led customers to get sucked into hours streaming their favorites.

Intensive growth strategies

Despite the rapid growth, there is intense competition from other competitors. Netflix chose a standardized approach to this. Providing original quality content gives them have a competitive advantage. You scoop a huge part of the market share when you deliver a different product.

Again, Netflix maintains the prices lower than their competitors to ensure a significant number of people access their services. In addition, they offer basic and premium services according to users’ needs and capabilities.

To thrive in technology, you need to have the right tools for production. We can talk of Amazon Web services (AWS) that have helped Netflix build up its portfolio. Hundreds of functions, such as recommendation engines, storage needs, and databases, have allowed Netflix engineers to give subscribers the best experience on their screens.

Previously, Netflix relied on in-house solutions where dedicated servers used to run with email delivery software and optimize emails sent to every ISP. In addition, we could also mention its content delivery network (CDN) to have the best user experience. Previously, Netflix used to rely on third parties such as Level 3, but this changed with introducing its CDN.

One reason why Netflix seems to remain on top is what most other streaming underrates, the use of Open Connect. It’s the reason Netflix servers never go down.
To maintain the experience, it often refreshes its data centers with the latest versions.

Employee empowerment

In most cases, the management hatches up and finalizes business decisions. However, this doesn’t mean that employees cannot come up with profound decisions with an impact. With no chance to make decisions, businesses limit innovations.

Netflix is perfect in allowing greater employee autonomy over their decisions. They have a dispersed decision-making system. Meaning decisions can also sprout from the lower levels of the organization.

Another lesson in emotion by Reed Hastings is the “No Vacation Policy. Employees can also decide when to take a break or work, allowing for freedom and flexibility. The concept of freedom and responsibility and not wilting up for little details is critical in Netflix’s success.

Not only the power of decisions but appreciating their success. It breeds respect, excellence, and values integrity.

The “No Rules Policy”

There is no special thing about having to get the best-qualified engineers. But again, if you want the best in every position, you need to get the best performers. Every company does that. However, what transpires after all the hiring drama is what counts. It’s getting every employee to perform and deliver.

But what is this special with Netflix culture that seems to dominate? It’s the no rule policy.


When you get qualified employees on board, let every employee have a sense of ownership. For example, if you come across Reed Hasting’s book on Netflix, you get to learn how Netflix changed its unconventional corporate culture, the culture that values employees over the process. This helps in building up the company culture.

Once employees feel they are eyed for success but not failure, they extract real benefits. And if they perform, one can eliminate unnecessary control.

Frank feedback

Feedback is the best way to clarify expectations and help build confidence in one another. When there is an open channel between management and employees, they feel trusted. Trust translates to ownership, responsibility, and commitment.

By embracing feedback, Netflix has a unique approach to mistakes. They ensure an open feedback channel from the lowest level to the chief executive. It’s the best way to evolve and grow.

Wrap Up

Poor streaming adventures are annoying, but it’s a thrill to see how Netflix has thrived over the storms.

It is hard to believe the immense work achieved by the 20+ years of Netflix in building up the streaming services everyone wants to be associated with; the beast of nation streaming service.

Putting customers’ happiness in the front and meeting their expectations is the most significant achievement Netflix has had down the road. But behind the scenes are tough synergies heavily invested in the masterpiece, which has led to the best streaming technology with the most subscribers.

In the long run, it has established values in its products alongside superior technology and maintained the competitive advantage, which has paid off with no signs of retreat.

Categorized in: