Why Netflix co-founder Reed Hastings thanked Amazon co-founder Jeff Bezos

Netflix co-founder Reed Hastings recently revealed that he adopted a "great business philosophy " from Amazon co-founder Jeff Bezos . On a podcast with entrepreneur Tim Ferriss , Hastings (who launched Netflix in 1997 and now serves as chairman of the US-based streaming giant) discussed his idea about experimenting with reversible risks.

He noted that experimenting with reversible risks can “help you get more done".

“I try to take a lot of risks on things that are recoverable,” Hastings added.

The Netflix boss said: “Otherwise, you are likely to get bogged down in anxiety over every potential worst-case scenario till you reach a point where you’re afraid to take any timely risks at all. [It] just gets in the way of creativity. In most fields... you want to move fast, and some things don’t work, and you fix them fast.”

He also talked about the risks that the company can recover from. For Netflix, approving of new shows that aren’t guaranteed hits may be considered a recoverable risk, Hastings explained.

For example, if a show is not popular among viewers, the streaming platform cancels it and uses its revenue for safer, lower-risk programmes to cover its financial losses.

How Jeff Bezos ’ business philosophy helped Reed Hastings to manage risks
Hastings also highlighted how Bezos looks at risks as either “one-way doors [or] two-way doors".

In an earlier podcast, the Amazon founder said that a two-way door risk is easy to take because it’s reversible, so “you can come back in and pick another door.” However, a one-way door risk probably can’t be undone.

“You go in that door, you’re not coming back. Those decisions have to be made very deliberately, very carefully,” Bezos noted.

“I think that’s a great business philosophy. I share it.” Hastings said while agreeing with Bezos’ take on risks.