netflix’s success through technology and culture - andicom 2014

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

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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.

TRANSCRIPT

Netflix’s Success through Technology and Culture

Mikey CohenNetflix

September 4, 2014

Over 50 million subscribers

in over 40 countries

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

1,000,000,000 hours is about

100,000 yearsper month...

Netflix supports over 1000 device types

How it all Began

...a short history

1999 - DVD by Mail

Netflix vs Blockbuster

“Epic” Battle ends..

2007- Netflix Streaming Begins

Huge Growth in Streaming

Tomorrow: 3 Years in Latin America!

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

Why has Netflix Been Successful?

Netflix is a different kind of Company

Imagine..

Freedom and Responsibility

Highly Aligned - Loosely Coupled

Context not Control

Rules

Hiring

Leadership Management

Pay

Focus

..In short

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

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

Netflix Culture and Edge Engineering

● Build highly scalable, resilient, dynamic systems

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

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)

Success of the Culture

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

How Netflix Streaming Works

The Parts..

Netflix Services

in Amazon Cloud (AWS)

CDN Your CE Device

Our Cloud Infrastructure

Edge Services (API and Playback)

Zuul

Website

Netflix Services

Cassandra

Memcache

Device Under the Hood

Cloud

CDN Your CE Device

User Interface

Netflix Streaming Platform

Cloud

User Interface loaded, data retrieved from Netflix Edge Service

CDN

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Cloud

User Interface Loaded

CDN

CE integration

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Cloud

Authorization / Obtain License

Your CE DeviceCDN

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Cloud

Content and CDN located

Your CE DeviceCDN

CE integration

Edge Services

PlayData

Your CE Device

User Interface

Netflix Streaming Platform

Cloud

Streaming Starts

Your CE DeviceCDN

CE integration

Edge Services

Your CE Device

User Interface

Netflix Streaming Platform

Content Delivery

User Interface

Netflix Streaming Platform

DRM

Cloud

encoding

Your CE DeviceCDN

CE integration

How Netflix can help ISP’s

...as Netflix gains popularity...

Inbound network traffic increases

Netflix Open Connect to the Rescue!

Netflix OCA

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

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

The Future of Netflix and Television

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.

Internet TV & Creative Freedom

How Netflix will get us to the future

Technology

Execution

Culture