This presentation was given at #ProductCon Online 2021 by Gibson Biddle, fmr VP of Product at Netflix.
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17. Get big on reusable rockets
Lead in-orbit refueling
Expand into Mars-based transport/supply partnerships
Expand further via space construction consortium.
Mars product vision
@gibsonbiddle
18. Inventing the future requires:
● A fuzzy vision
● A long-term strategy
● Constant experimentation, and
● A culture of iconoclasts.
Why Mars?
@gibsonbiddle
24. 1997: 1 DVD by mail
2007: Streaming launch
2015: 190 countries
2020: 21 Emmys.
Long-term thinking makes all things possible
@gibsonbiddle
25. Netflix Journey
@gibsonbiddle
DVDs
by Mail
DVD subscription
Cancel UK
DVD launch
Launch
downloading
Streaming-only
in Canada
“Max” on
Playstation fails
“House of Cards”
Qwikster
Kill “House
of Cards”
160 Emmy nominations
Kill
Red Envelope
26. Get big on DVDs
Lead streaming
Expand worldwide
Netflix’s multi-stage rocket
@gibsonbiddle
Expand further via original content.
27. Delight customers, in hard-to-copy, margin-enhancing ways:
Simple/easy
Personalization
Instant
Device ecosystem
Original content.
Product strategy
@gibsonbiddle
29. Growing DVD by mail library
$22/month for 3 DVDs at a time
Blockbuster launches “Total Access”
5% of customers cancel each month
Unprofitable.
Stage 1: DVDs (2005)
@gibsonbiddle
32. Netflix core: selection, value, next day DVDs
DVD stage
learning
Long-term bet on personalization
Delight, Hard to copy, Margin-enhancing
Margin = fuel
Consumer science is hard.
@gibsonbiddle
33. Launch “Watch instantly” in January
5% of customers watch > 15 minutes/month
300 streaming titles available
PC only.
Stage 2: Streaming (2007)
@gibsonbiddle
36. Streaming platform (not a hardware company)
Streaming
learning
Continued investment in personalization
Unanticipated: Episodic TV content
Original content success: “House of Cards”
Binge-watching: Happy accident.
@gibsonbiddle
37. An entrepreneur is
someone who will
jump off a cliff and
assemble an airplane
on the way down.”
Reed Hoffman, Angel Investor
Chairman and co-founder of LinkedIn
@gibsonbiddle
54. Sam Altman
Chairman of YCombinator @gibsonbiddle
Be more ambitious.
Then talk about that
big vision and work
relentlessly towards
it. But always have a
next step. ”
58. Potential to DHM
Delight: ~1% of customers watch > 1 hour/month
Hard to copy: studio tools & ecosystem
Margin: improved retention
Compete for screen time (with Fortnite, Instagram, etc.).
Interactive stories
@gibsonbiddle
@gibsonbiddle
64. Netflix’s 5 Stages
1) DVDs 2) Streaming 3) International 4) Originals 5) Interactive?
Core
Value
(DHM)
Personalization
Selection
Instant/easy
Value
Personalization
Selection
Instant/easy
Value
Device ecosystem
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Success
Failure
@gibsonbiddle
65. Netflix’s 5 Stages
1) DVDs 2) Streaming 3) International 4) Originals 5) Interactive?
Core
Value
(DHM)
Personalization
Selection
Instant/easy
Value
Personalization
Selection
Instant/easy
Value
Device ecosystem
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Success Next day delivery
Price & plans
Advertising
Previously viewed
Subscription
Episodic TV
House of Cards
Binge-watching
Device ecosystem
Profiles
Mobile-only plan
Downloads
Ultra HD
Automated lip-synch
Original content
Comedy
Episodic Docs
Puss in Book
Minecraft
Capt. Underpants
Bandersnatch?
Kimmy Schmidt?
Failure
@gibsonbiddle
66. Netflix’s 5 Stages
1) DVDs 2) Streaming 3) International 4) Originals 5) Interactive?
Core
Value
(DHM)
Personalization
Selection
Instant/easy
Value
Personalization
Selection
Instant/easy
Value
Device ecosystem
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Success Next day delivery
Price & plans
Advertising
Previously viewed
Subscription
Episodic TV
House of Cards
Binge-watching
Device ecosystem
Profiles
Mobile-only plan
Downloads
Ultra HD
Automated lip-synch
Original content
Comedy
Episodic Docs
Puss in Book
Minecraft
Capt. Underpants
Bandersnatch?
Kimmy Schmidt?
Failure Previews
UK launch
Friends/social
Exclusives
Netflix TV Player
Qwikster
Entertainment
Mood-based choice
China launch
Tell A Friend
No credit card
Chelsea Handler
Sense8
The Ranch
??
@gibsonbiddle
67. Netflix’s 5 Stages
1) DVDs 2) Streaming 3) International 4) Originals 5) Interactive?
Core
Value
(DHM)
Personalization
Selection
Instant/easy
Value
Personalization
Selection
Instant/easy
Value
Device ecosystem
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
2010
Invest
20% 30% 40% 10%
@gibsonbiddle
68. Netflix’s 5 Stages
1) DVDs 2) Streaming 3) International 4) Originals 5) Interactive?
Core
Value
(DHM)
Personalization
Selection
Instant/easy
Value
Personalization
Selection
Instant/easy
Value
Device ecosystem
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
Personalization
Selection
Instant/easy
Value
Device ecosystem
Original content
Ultra HD
Studio tools
2010
Invest
20% 30% 40% 10%
2020
Invest
5% 30% 30% 30% 5%
@gibsonbiddle
70. @gibsonbiddle
Your rocket ship
GLEE: Long-term vision
Multi-stage plan/investment
Delight/H2C/Margin
“My hypothesis is...”
Strategy: Plan
Customer obsession
Fast-paced experiments
Make core better
Build to next step function
Consumer Science: Data
Values: behaviors/skills
Curiosity, courage
Experts at each stage
Iconoclasts
Culture: Judgment