Below are the top 80 executives at Netflix. The company has grown substantially in the last six years as the streaming business has taken off, but its top management has remained stable. Beneath CEO Reed Hastings' direct reports are a large group of VPs that make up the E-Staff and advise on broad corporate strategy. Most of them are included in this chart.
Last updated May 30, 2018
Of all the factors that explain Netflix’s success in upending the media industry, the least understood may be just how little it operates like a traditional media company.
Last updated May 30, 2018
Of all the factors that explain Netflix’s success in upending the media industry, the least understood may be just how little it operates like a traditional media company.
Netflixed: The Epic Battle for America's Eyeballs
At most studios and TV networks, decisions about whether to make a show or a movie can be made only by a handful of people atop the company, namely the president, a programming chief and a few other senior executives. But Netflix allows many people on its team—including people two rungs down from programming chief Ted Sarandos—to greenlight a new series or buy the streaming rights to a TV show. That sort of autonomy—known internally as “Freedom and Responsibility”— is replicated across other departments like marketing.
To give a clearer idea of how Netflix operates, we’ve put together for the first time an organizational chart (see above) of the management team with 80 names.
THE TAKEAWAY
• Netflix gives a lot of of execs decision-making powers
• CEO has “R-staff” of direct reports who meet monthly
• VPs are “E-staff” who meet regularly to discuss strategy
Netflix’s “distributed decision making,” as some current and former employees call it, allows Netflix to move much faster than typical studios. It helps explain how it has managed to ramp up spending on programming at a dizzying rate—it’s up to $8 billion in 2018. Netflix this year will air around 700 original series, films and other programs, it has said, many times what a rival like HBO airs.
Along the way, Netflix has signed up 118 million subscribers around the world and amassed a market capitalization of $152 billion, more than traditional entertainment giants like Walt Disney Co. or Comcast. But it is also burning through billions in cash a year, funding its content binge by borrowing money. The big question remains when it will start to generate cash.
CEO Reed Hastings’ direct reports, known internally as the “R-staff,” meet with him once a month, according to a former employee. It’s been a fairly stable group for the past six years, after the departure of several longtimers such as CFO Barry McCarthy and CMO Leslie Kilgore in the 2010–12 period.
In April 2017, another person from Netflix’s early days, Neil Hunt, left the chief product officer role. Veterans still around include Mr. Sarandos, a former video retail store manager who joined the company in 2000 when Netflix was a DVD rental service. Another veteran is general counsel David Hyman, who joined in 2002.
Below the R-staff is a layer of vice presidents. Known as the “E-staff”—or executive staff—they oversee teams across the company, focusing on businesses like original content, platform engineering and regional marketing. Following Netflix’s growth into a global behemoth over the past four years, the E-staff has grown to more than 100.
The E and R staffs meet around 10 times a year where they discuss broad strategic initiatives. Members are expected to be ready to express informed opinions on all corporate matters, regardless of whether it directly involves their department. For example, when the company was discussing its expansion in Europe and which countries to focus on, all executives were expected to have thoughts on whether they should go to the Nordic countries or the Netherlands first. One former E-staff member recalled studying up assiduously on the level of broadband penetration in the respective regions in advance of that meeting.
Every quarter, a larger group that also includes employees at the director level, below vice presidents, meet to review the state of the business.
Many current and former employees say the nature of the meetings are an essential part of how the company develops and streamlines its strategy. Indeed, one of the questions that employees have as the company expands internationally and establishes regional offices in Europe and Latin America is whether it can maintain that corporate culture.
The hub of Netflix is Mr. Sarandos’ content team. He currently has seven VPs reporting to him in areas ranging from original shows, movies and unscripted series to licensing movies and TV shows. Each of these seven have their own teams.
The content team includes a mix of people with traditional and non-traditional Hollywood resumes. Original series chief Cindy Holland, for instance, has been at the company since 2002 and previously worked on content acquisition within the DVD business, although she worked at other film companies earlier in her career.
One of Ms. Holland’s direct reports, original series VP Allie Goss, had no prior entertainment industry experience when she joined the company in 2006 as an assistant. In that sense, Netflix is following a time-honored Hollywood tradition where many senior executives started their careers in the mailroom of a talent agency or as an assistant.
Other members of the content team have also come from major studios. The company’s head of original films, Scott Stuber, was previously a vice chairman at Universal Pictures, for example. Bela Bajaria, who heads up unscripted programming, was president of Universal Television. The decentralized decision-making is an adjustment for those joining from traditional Hollywood, where someone below the vice president level “isn’t even dirt that you flick off your shoes,” said one employee.
As Netflix has invested in more and more shows outside North America, the company has expanded its international content team. Key executives include Erik Barmack, who oversees international originals, and Rob Roy, who focuses on Asia and lives in Singapore.
Legal and Finance
To put together film and TV projects, people across various departments—including legal and finance—form ad hoc teams to discuss budgeting. These teams change from project to project. Unlike at traditional studios, team members don’t necessarily specialize on specific genres.
Keeping on top of the spending side is David Burt, who reports to CFO David Wells. A former investment banker based in Los Angeles, Mr. Burt oversees a large group that analyzes the company’s trove of user data—along with other information—to advise on the budget for each prospective show. It’s the data-driven approach that analysts often point to as the company’s distinct advantage going into negotiations.
On the legal side, VP of Business and Legal Affairs Bryony Gagan works out of Los Angeles with her own team. She reports to general counsel, Mr. Hyman. Ms. Gagan’s team is responsible for negotiating the agreements for all original and licensed content on the service.
Marketing
The Netflix marketing team has changed significantly over the years, in particular as Netflix has become an international service. In 2012, Mr. Hastings hired Kelly Bennett to lead the division; Mr. Bennett had previously been in London with Warner Bros. He has a team of vice presidents who each focus on different international territories, including growth areas like Latin America and the Asia-Pacific region. Initially, Mr. Hastings had wanted all the marketing teams to be based out of the company’s California offices, but it has since built up outposts in places like Amsterdam and São Paulo.
Until 18 months ago, the social media marketing team, underneath Eric Pallotta, reported to Chief Communications Officer Jonathan Friedland. It has since moved under Mr. Bennett. It’s a growing team that plays a significant role in marketing shows, both to attract new subscribers as well as re-engaging ones who have lapsed.
—Priya Anand, Martin Peers and Kevin McLaughlin contributed to this article.
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