Netflix genuinely did break with orthodoxy on this point and paid more than “reasonable pay” (meaning median pay) and the approach seemed to work with their engineering so competent that a major AWS outage that seemingly took out a quarter of the internet didn’t take down Netflix despite its disproportionately higher needs for cloud infrastructure. I think it certainly made sense for them to do in hindsight as a high growth company, high standards and high pay likely fuelled their growth and expanded their moat.
I question if the strategy still makes sense as they seem to be getting eaten alive by spendthrifts like Disney.
As an aside, from an employees perspective, I think expecting much out of your employees and giving them high pay is fundamentally respecting them more than giving them “reasonable pay” and shrugging your shoulders and going “eh, I’ll make do with what I have”.
They are getting eaten alive by a content company with better content that had the money to buy their way into technology that was just as good when they acquired BamTech.
I question if the strategy still makes sense as they seem to be getting eaten alive by spendthrifts like Disney.
As an aside, from an employees perspective, I think expecting much out of your employees and giving them high pay is fundamentally respecting them more than giving them “reasonable pay” and shrugging your shoulders and going “eh, I’ll make do with what I have”.