Aspire with Emma Grede
Episode: From Video Store to Netflix Co-CEO, Ted Sarandos
Date: September 16, 2025
Guest: Ted Sarandos, Co-CEO of Netflix
Host: Emma Grede
Main Theme & Episode Overview
In this episode of "Aspire," Emma Grede sits down with Ted Sarandos, Netflix’s Co-CEO, to explore his incredible journey from a small video rental shop in Arizona to the helm of one of the world’s most influential entertainment companies. Through candid storytelling, Sarandos discusses his working-class roots, the evolution of Netflix, the art of decision-making, the power of intuition and risk, and his unique approach to leadership and creativity in the digital age. Listeners are treated not only to practical business philosophy but to the personal values and life experiences that shaped Sarandos’ visionary leadership.
Key Discussion Points & Insights
1. Unconventional Beginnings & Family Background
Timestamps: [02:45]–[07:49]
- Sarandos describes his upbringing in a chaotic, working-class household: "My parents were very young, so they had four kids in their 20s... It was chaotic in my house all the time. So we didn't have bedtime. We didn't have structured things." [05:31]
- Early inspiration came from his grandmother, “Nanny,” who was obsessed with Hollywood and late-night TV, providing young Ted an escape and his first attachment to the world of entertainment.
- Notable quote: "She would always talk about celebrities on a first name basis… I would sit up with her and watch the Tonight Show, Johnny Carson.” [06:37]
2. From Video Stores to Hollywood
Timestamps: [07:49]–[14:09]
- Sarandos recounts working in one of Arizona’s first video rental stores and the lessons learned from direct customer interaction.
- Dale Mason, the store’s owner, gave Sarandos his first chance at management, effectively turning the stores into a “business MBA and film school all wrapped up in one.”
- Notable quote: “I just got a real grounding… in how movies talk to one another. If you like this, you'll like this… it was preparing me for what I'm going to do next, but I didn’t know it at the moment.” [10:20]
3. Customer-Centric Thinking & Learning from the Trenches
Timestamps: [11:36]–[13:39]
- Emphasized the impact of daily engagement with customers: “I was in direct contact with the end user… and that's what I think really prepared me for everything I do now.” [11:45]
- Explores the importance of understanding customer psychology and decision-making, and how formative video shop experiences informed his later data-driven strategies at Netflix.
4. Joining Netflix – The Early Tech Transition
Timestamps: [14:09]–[18:04]
- Sarandos shares the story of discovering Netflix through a DVD player insert and meeting Reed Hastings, who had a wild vision for streaming long before it was technologically viable.
- Notable quote: "All entertainment is gonna come into the home on the Internet. If you think you're still gonna be getting your entertainment on cable, you shouldn't... not only don't take this job, don't buy my stock when I go public." [18:40]
- Early Netflix was run from bedrooms, with Sarandos bridging the gap between Hollywood and Silicon Valley.
5. Bridging Culture Clashes: Tech vs. Hollywood
Timestamps: [18:04]–[31:10]
- Sarandos describes learning tech culture as an outsider, the value of transparency, and the importance of trust and relationships in entertainment.
- Notable quote: “If there was anything that was gonna surprise anybody, give them a heads up. If you're the new character... you've got to give people a lot of context.” [21:03]
- Early team-building examples: hosting Netflix engineers for a night at The Improv in LA to experience Hollywood firsthand.
- Developed the principle: “If you're an engineer at Netflix, you work at the greatest tech company on the planet. And if you’re an entertainment executive, you work at the greatest entertainment company.” [31:02]
6. Original Content as a Risk & Breakthrough
Timestamps: [32:35]–[40:42]
- The leap to original programming (e.g., House of Cards) was Sarandos’ initiative, often against the prevailing company logic at the time.
- Notable quote: “If this does not work, we will have overspent dramatically on one show... If it does work, it will fundamentally change the course of the business.” [34:07]
- Sarandos describes the pivotal deal: two seasons, no creative interference to attract top talent like David Fincher.
- International content success—how a Norwegian series, “Lillehammer,” unexpectedly launched Netflix’s global expansion and binge-release model.
7. Balancing Analytics & Intuition
Timestamps: [41:07]–[46:33]
- Sarandos insists “data-informed intuition” is the winning formula, stressing the importance of seeking dissent to avoid confirmation bias.
- Quote: “As animals, we have this confirmation bias... One of our core culture things at Netflix is farming for dissent—go out and look for people to disagree with you.” [45:57]
- Belief in challenging one’s own assumptions: “If your intuition and the data don’t match, you might be asking the wrong question.” [46:32]
8. Leadership, Scaling, and Company Culture
Timestamps: [49:30]–[53:14]
- On maintaining risk-taking and agility as Netflix grows: “Celebrate wins and demystify losses… you can’t have this mythological fear of losing.” [50:32]
- Details the Qwikster incident: an example of misjudging public reaction, but a learning moment on consumer focus.
9. On Netflix's Impact: Savior or Disruptor?
Timestamps: [53:21]–[54:52]
- Sarandos argues Netflix has “saved” rather than ruined Hollywood, meeting audiences where they are, and preserving the art form in evolving formats.
10. The Future: Streaming, AI, and Competition
Timestamps: [55:11]–[59:13]
- On AI: Sees it as empowering storytellers, not as a distribution disruptor.
- On YouTube: Sees user-generated content as both competitive and complementary, a vital part of the creative ecosystem.
11. Consumer Relevance and Brand Power
Timestamps: [60:13]–[61:43]
- Sarandos points to Netflix’s “cultural relevance,” citing the instant commercial impact of Meghan Markle’s and Prince Harry’s documentary.
- Emphasizes that great content must always come before consumer products in building a brand.
12. Succession & Leadership Model at Netflix
Timestamps: [67:24]–[70:46]
- Details Reed Hastings’ vision for sustaining Netflix beyond any single leader, and the uniqueness of the co-CEO (with Greg Peters) model.
- Quote: “Our focus is on our deep expertise and our deep passion and we defer to each other in those things... You have to have people who are mostly concerned with the success of the business, over their own title or position.” [70:01]
13. Mentorship, Legacy, and Family
Timestamps: [70:59]–[80:31]
- Sarandos shares stories of personal influence from mentors like Norman Lear, Dick Van Dyke, and Clarence Avant (his late father-in-law).
- Talks about how he supports his children's creative careers, emphasizing dependability above all: “Probably the most important thing in any job, in any role, is that you can be depended on.” [81:09]
Notable Quotes & Memorable Moments
-
On trusting yourself:
“Risk-reward has kind of been my guiding light... If the prize is big enough, you should take pretty unreasonable risk. If it isn’t, don’t.” [32:49] -
On original programming and creative trust:
“If you give people, the right people, the tools they need to do the best work of their life... they will want to please the audience. They want to do the best work of their life.” [42:32] -
On art and commerce:
“There’s always this idea that art and commerce are somehow in conflict. I don’t think they are—they enable each other.” [44:16] -
On leadership and growth:
“Celebrate wins and you have to demystify losses… Talk about when things wipe out, really openly and candidly.” [50:32] -
On data and instincts:
“Data-informed intuition is a winning formula.” [45:28] -
On the future and scale:
“We focus on that all the time: how do we be better than Netflix from last year... We suck today compared to what we're going to be tomorrow.” [65:17] -
On parenthood and next generation:
“Being dependable is so important. It's probably a lost art in some ways... You owe it to the world to show up.” [82:11]
Rapid Fire and Personal Reflections
Timestamps: [82:36]–[87:08]
- First and last thing he does each day: feeds and tends the dogs, watches movies/TV.
- Aspires to keep the day-one excitement alive at Netflix after 26 years.
- Advises his kids on the value of living in New York in your 20s—and of showing up.
- Book that changed his life: “The History of Comedy” by Joe Franklin.
- Values now more than ever: time. Used to value sleep more (“I really valued sleep, but more than I do now. It seems backwards.” [86:44])
Episode Takeaways
- Start with the end user: Every successful innovation, from video rental to world-dominating streaming, must begin with a deep understanding of audience needs and behavior.
- Cross-industry bridges fuel innovation: Sarandos’s rise was due in part to a willingness to learn from Hollywood and Silicon Valley, and to facilitate communication between two very different cultures.
- Calculated risks are essential: Game-changing decisions—like Netflix Originals—are founded on a clear-sighted assessment of risk and reward, backed by intuition and data.
- Build, protect, and empower talent: Creative minds produce the best work when trusted, resourced, and shielded from unnecessary interference.
- Leadership means humility and partnership: The co-CEO model at Netflix proves that shared leadership without ego can propel companies through transformative eras.
- Legacy is about impact, not ego: The true measure of success is creating a business that can thrive after you’re gone.
For listeners:
Whether you’re dreaming of a career leap, running a growing business, or navigating the crossroads of art and technology, Sarandos’ story offers practical wisdom and a refreshingly humble perspective on modern leadership.