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Netflix’s Success through Technology and Culture Mikey Cohen Netflix September 4, 2014
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Netflix’s Success through Technology and Culture - Andicom 2014

Oct 28, 2014

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Technology

Mikey Cohen

Netflix is the world's leading internet television network. In this presentation, I talk about the aspects of Netflix culture that have contributed to its success. The freedom and responsibility culture, with highly aligned, loosely coupled teams of amazing, enthusiastic, helpful, high performance people with excellent judgement has helped build Netflix to adapt and change quickly, and iterate to make the best service possible. By eliminating rules and processes, and ensuring that employees have the contexts of the business in all aspects, Netflix has enabled employees to use their judgement to get things done rather than relying on control or process. This has resulted in Netflix becoming a leader in not only internet streaming, but also cloud computing, media, and culture. Because of the Netflix culture, we have been able to attract and retain great employees.
I give a few examples from my team, Edge Engineering of how the culture enables us to build the high scale, resilient and dynamic services that are the front door to the Netflix streaming application, and how the freedom we have has enabled us to open source core technologies that are needed for large scale, service-oriented architectures in a cloud environment.
This slideshow also gives a high level overview of how the streaming service works, and how Netflix's Open Connect Appliance can help ISPs.
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Page 1: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix’s Success through Technology and Culture

Mikey CohenNetflix

September 4, 2014

Page 2: Netflix’s Success through Technology and Culture - Andicom 2014
Page 3: Netflix’s Success through Technology and Culture - Andicom 2014

Over 50 million subscribers

in over 40 countries

Page 4: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix accounts for over 34% of peak internet traffic in North America

Page 5: Netflix’s Success through Technology and Culture - Andicom 2014

1,000,000,000 hours is about

100,000 yearsper month...

Page 6: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix supports over 1000 device types

Page 7: Netflix’s Success through Technology and Culture - Andicom 2014

How it all Began

...a short history

Page 8: Netflix’s Success through Technology and Culture - Andicom 2014

1999 - DVD by Mail

Page 9: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix vs Blockbuster

Page 10: Netflix’s Success through Technology and Culture - Andicom 2014

“Epic” Battle ends..

Page 11: Netflix’s Success through Technology and Culture - Andicom 2014

2007- Netflix Streaming Begins

Page 12: Netflix’s Success through Technology and Culture - Andicom 2014

Huge Growth in Streaming

Page 13: Netflix’s Success through Technology and Culture - Andicom 2014

Tomorrow: 3 Years in Latin America!

Page 14: Netflix’s Success through Technology and Culture - Andicom 2014

Very Soon! Germany, France, Austria, Switzerland, Belgium, Luxembourg

Page 15: Netflix’s Success through Technology and Culture - Andicom 2014

Why has Netflix Been Successful?

Page 16: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix is a different kind of Company

Page 17: Netflix’s Success through Technology and Culture - Andicom 2014

Imagine..

Page 18: Netflix’s Success through Technology and Culture - Andicom 2014
Page 19: Netflix’s Success through Technology and Culture - Andicom 2014

Freedom and Responsibility

Page 20: Netflix’s Success through Technology and Culture - Andicom 2014

Highly Aligned - Loosely Coupled

Page 21: Netflix’s Success through Technology and Culture - Andicom 2014

Context not Control

Page 22: Netflix’s Success through Technology and Culture - Andicom 2014

Rules

Page 23: Netflix’s Success through Technology and Culture - Andicom 2014

Hiring

Page 24: Netflix’s Success through Technology and Culture - Andicom 2014

Leadership Management

Page 25: Netflix’s Success through Technology and Culture - Andicom 2014

Pay

Page 26: Netflix’s Success through Technology and Culture - Andicom 2014

Focus

Page 27: Netflix’s Success through Technology and Culture - Andicom 2014

..In short

Netflix culture enables talented people to build great products by minimizing process and enabling us to do what we love...

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About my Team (Edge Engineering)

● Build and operate the front door and control systems for Netflix streaming

● Billions of requests per day ● Constant code changes● ~ 20 people

○ Platform 5○ Delivery 5○ Services 6○ Management 4

Page 29: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix Culture and Edge Engineering

● Build highly scalable, resilient, dynamic systems

● Act fast, react fast● Freedom to radically experiment● Open Source what we developed

Page 30: Netflix’s Success through Technology and Culture - Andicom 2014

OSS Thought Leadership from my small team

● Zuul - Netflix’s Cloud Edge Router● Hystrix - Service Resilience● RxJava - Reactive Extensions● Turbine - Data stream aggregation● Ribbon2 - SOA client● Prana - Cloud platform support for multiple

programming languages.● Scryer - Predictive cloud Autoscaling (** not yet)● Nicobar - Dynamic code/scripting library (** not yet)

Page 31: Netflix’s Success through Technology and Culture - Andicom 2014

Success of the Culture

● Streaming Success● Media Success● Cloud Computing Leader● Cultural Leader● Attract and retain great employees

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How Netflix Streaming Works

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The Parts..

Netflix Services

in Amazon Cloud (AWS)

CDN Your CE Device

Page 34: Netflix’s Success through Technology and Culture - Andicom 2014

Our Cloud Infrastructure

Page 35: Netflix’s Success through Technology and Culture - Andicom 2014

Edge Services (API and Playback)

Zuul

Website

Netflix Services

Cassandra

Memcache

Page 36: Netflix’s Success through Technology and Culture - Andicom 2014

Device Under the Hood

Cloud

CDN Your CE Device

User Interface

Netflix Streaming Platform

Page 37: Netflix’s Success through Technology and Culture - Andicom 2014

Cloud

User Interface loaded, data retrieved from Netflix Edge Service

CDN

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Page 38: Netflix’s Success through Technology and Culture - Andicom 2014

Cloud

User Interface Loaded

CDN

CE integration

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Page 39: Netflix’s Success through Technology and Culture - Andicom 2014

Cloud

Authorization / Obtain License

Your CE DeviceCDN

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Page 40: Netflix’s Success through Technology and Culture - Andicom 2014

Cloud

Content and CDN located

Your CE DeviceCDN

CE integration

Edge Services

PlayData

Your CE Device

User Interface

Netflix Streaming Platform

Page 41: Netflix’s Success through Technology and Culture - Andicom 2014

Cloud

Streaming Starts

Your CE DeviceCDN

CE integration

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Page 42: Netflix’s Success through Technology and Culture - Andicom 2014

Content Delivery

User Interface

Netflix Streaming Platform

DRM

Cloud

encoding

Your CE DeviceCDN

CE integration

Page 43: Netflix’s Success through Technology and Culture - Andicom 2014

How Netflix can help ISP’s

Page 44: Netflix’s Success through Technology and Culture - Andicom 2014

...as Netflix gains popularity...

Page 45: Netflix’s Success through Technology and Culture - Andicom 2014

Inbound network traffic increases

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Netflix Open Connect to the Rescue!

Netflix OCA

Page 47: Netflix’s Success through Technology and Culture - Andicom 2014

Netflix Open Connect

● Reduces ISP cost by serving Netflix traffic from the local ISP datacenter, rather than upstream network interconnects

● Netflix bears the capital and maintenance costs, not ISP

● ISP provides space, power and a network port● Free of charge to ISP

Page 48: Netflix’s Success through Technology and Culture - Andicom 2014

How Open Connect has helped ISPs

● 10X ISP traffic growth in < 12 months after Open Connect

● About 90% of Netflix traffic offset by Open Connect in Latin America (~80% in N. Am)

● International transit cost savings● Ultra HD/4k streams, 3D streams, and high

Netflix Speed Index attracts and retains ISP customers

Page 49: Netflix’s Success through Technology and Culture - Andicom 2014

The Future of Netflix and Television

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Future of Netflix and Television

● Internet TV○ By 2016 50% of television will be delivered by

internet● Smart TV revolution

○ 100 million Smart TV’s will be sold this year○ By 2025 everyone will have a smart television

● Smart Netflix - Algorithms○ Predict the 1 - 3 shows you want to watch now.

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Internet TV & Creative Freedom

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How Netflix will get us to the future

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Technology

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Execution

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Culture