These leadership takeaways are part of a new primetime series, CNBC Leaders Playbook, premiering January 7 at 10 p.m. ET/PT. Hosted by CNBC’s Julia Boorstin, the series goes inside the minds of the world’s top business leaders to reveal 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 unclear, trusted talented people to make big decisions, and relied on instinct as much as data.
These five leadership moves show how Sarandos created a culture that isn’t afraid to take risks, challenge assumptions, and keep reinventing what entertainment can be.
When content deals were getting harder to close, Sarandos knew Netflix needed to start creating its own original programming.
He took a big swing and paid $100 million for two seasons of “House of Cards” in 2011.
He thought if he could make the series work on Netflix, it could help secure the long term future of the business.
It was a risky bet that paid off.
The series was a huge hit and the decision changed the streamer’s trajectory.
I worried if we started small, that we would never really get a good enough read if we made a good choice or not, because it would have… so little impact on the business.
Ted Sarandos
Netflix Co-CEO
2) Empower people, then get out of the way
Netflix’s culture of “freedom and responsibility” — trusting smart people to make the right decisions and holding them accountable for the results — came from co-founder Reed Hastings, and Sarandos doubled down on it.
He says he built a company where teams across 50 countries make their own creative calls: no micromanaging, no bureaucracy.
Pick the best people, give them the tools to do the best work of their life, and get out of their way.
Ted Sarandos
Netflix Co-CEO
3) Lead with gut, informed by data
Netflix’s success blends art and science.
Sarandos believes data should support creativity, not dictate it.
The world’s biggest hits begin with instinct, he says, not algorithms.
It should start with the hunch, because if you start with the data, you might end up in a radically different place than you thought.
Ted Sarandos
Netflix Co-CEO
4) Build a culture that fears nothing
Netflix thrives on experimentation.
Taking big swings, learning fast, and moving on when something doesn’t work.
What begins as a risk can quickly become a global hit.
Don’t be afraid. There’s a lot of trial and error in this business.
Ted Sarandos
Netflix Co-CEO
5) Challenge conventional wisdom
Leaders at Netflix are encouraged to challenge decisions.
Sarandos believes healthy debate and dissent are critical to fuel innovation, and the best ideas are born when someone dares to question the norm.
You have to create an environment where people can say, ‘I know how you feel about this, Ted — but how about this?’
Ted Sarandos
Netflix Co-CEO
Watch Ted Sarandos’ interview on CNBC Leaders Playbook — a new prime-time series hosted by Julia Boorstin, featuring candid conversations with the world’s top business leaders on how lasting success is built.
Episode premiere (Netflix):Â Jan. 7 at 10 p.m. ET/PT on CNBC.
All new episodes Wednesdays.