Publications
Publications
- June 2022 (Revised September 2022)
- HBS Case Collection
Netflix’s Culture: Binge or Cringe?
By: Hubert Joly, Leonard A. Schlesinger, James Barnett and Stacy Straaberg
Abstract
In April 2022, streaming entertainment company Netflix lost customers for the first time in more than 10 years. Once a first mover in the streaming landscape, Netflix was facing competition from Amazon Prime Video, Disney+, HBO Max, and others. A key component of Netflix’s prior success was its unique “freedom and responsibility” culture, in which the company eschewed hierarchical decision-making, performance reviews, and vacation and expense policies, and employees were expected to maintain high performance or else get cut from the “dream team.” While some employees reported appreciation for Netflix’s culture, others described it as “cutthroat.” Given the company’s performance in spring 2022, was Netflix’s “no rules rules” culture still an asset or was it now a liability?
Keywords
Compensation and Benefits; Employees; Recruitment; Resignation and Termination; Retention; Selection and Staffing; Innovation and Management; Innovation Strategy; Leadership Style; Business or Company Management; Management Style; Media; Business Processes; Organizational Culture; Organizational Structure; Performance Expectations; Performance Productivity; Creativity; Business Strategy; Entertainment and Recreation Industry; Media and Broadcasting Industry; Motion Pictures and Video Industry; Video Game Industry; North America; California; Canada; Europe; Middle East; Africa; Asia; Latin America
Citation
Joly, Hubert, Leonard A. Schlesinger, James Barnett, and Stacy Straaberg. "Netflix’s Culture: Binge or Cringe?" Harvard Business School Case 522-096, June 2022. (Revised September 2022.)