Netflix co-founder Marc Randolph recently shared on a podcast that he believes the idea of hard work always leading to success is a myth. He emphasized that being smart about choosing the right problems to focus on is what truly makes a difference. “You don’t need to get everything right because not everything matters—only some things do,” he explained.
One of those things that did matter was a “simple fix,” which he credits for significantly boosting Netflix’s market value to $289.29 billion, as he mentioned on an episode of The Diary of a CEO with Steven Bartlett.
Randolph shared that during his time at Netflix, he would meticulously debate every word and photograph on products seen by customers, aiming for perfection before release. However, he eventually learned that getting real-life feedback on imperfect, unfinished tests as soon as possible was more valuable than trying to perfect the product on his own.
No matter how poorly the test went, Randolph claimed, “if it had the slightest chance of being a good idea, it showed through.” “Clients would instantly raise their heads.”
One of those tests was Netflix’s subscription model, which did away with late fees on DVD rentals. Customers appreciated the simpler, stress-free experience, and this “simple fix,” as Randolph described it, played a key role in expanding Netflix’s customer base.
Just last year, the company ended its 25-year practice of mailing DVDs to members. This decision came 16 years after it gradually transitioned its focus to streaming content online.
