Marc Randolph's story is one of innovation, risk-taking, and sheer determination. As the co-founder of Netflix, he played a pivotal role in revolutionizing the entertainment industry and changing the way we watch movies and TV shows. 

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As of 2020, Netflix has reached over 200 million subscribers worldwide and has continued to produce a wide range of original content, including movies, TV shows, documentaries, and comedy specials.

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Marc Randolph is a Netflix co-founder who served as CEO and board of directors during the early years of the company. But how did Randolph help build and grow Netflix? Was he in the entertainment industry previously? How did he become successful with the business now worth $100+ billion?

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Born in 1958 in Chappaqua, New York, Randolph spent his high school and college summers working at the National Outdoor Leadership School. He graduated from Hamilton College with a degree in Geology.

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When he was 23 years old, he didn’t get into work that was related to what he studied in college. He worked as a real estate agent and considered himself the worst agent because he didn’t have sales for eight months. This could easily be demotivating for anyone but Randolph persisted and seek for opportunities.

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He then became an executive assistant to the CEO of a sheet music company, Cherry Lane Music. Anyone could say it’s not an easy nor glamorous job as you’re constantly on call for all sorts of tasks. But Marc Randolph saw this differently. He looked at it as a window to learn new things and be exposed to what a CEO deals with each day. He saw how a CEO would prioritize and manage tasks for the day, week, and month. It was the perfect way to see the different divisions of the company. 

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One day, a mail order division opened up in the company and Randolph became the perfect person to take the role. Another seemingly unglamorous job but he took in all that he could learn from this experience which was eventually helpful when they founded Netflix.

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He learned about direct mail marketing, customer relations, and advertising. He was able to learn from others and gain knowledge from his own experience. 

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Eventually, Cherry Lane then came up with a magazine, and without hesitation, he dived into the role and taught himself about circulation. A year later, another publisher needed a circulation director, so the magazine would focus on Mac enthusiasts. He then went on to put up or work with several tech startups through the years such as SuperMac, MacUser, Integrity QA Software, Borland International, and Pure Atria.

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By 1997, Randolph’s exposure to the direct mail industry gave him the idea to come up with a business that would send DVD rentals via mail. 

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Marc Randolph and Reed Hastings were colleagues and carpool buddies while working at the software company, Pure Atria. They agreed on brainstorming during their trips and they threw different ideas during their daily hour-and-a-half-long car ride from Santa Cruz, California to Silicon Valley. This went on for 6 months and Randolph would pitch other ideas to Hastings from personalized shampoo, to customized bats, and to dog food. 

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One random morning as they were having coffee, they wondered if you could mail a DVD in a first-class envelope. To find out, they actually mailed a music CD to Hastings’ home address which he received the next day. 

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Randolph says it’s essential to test your ideas whether you think they’re good or bad. They didn’t go and make a business plan straight away but rather tested their idea since it seemed to not exist at that time.

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He goes on to share about having bad ideas, “We are constantly surprised. The one you think is great is terrible. The one you think is terrible is great. It’s impossible to know until you try it.”

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They focused on their own tests and didn’t mind the opinion of others as their likely response would be “That will never work”. 

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Fast forward to August 1997, Marc Randolph and Reed Hastings launched Netflix which started as a movie rental service. Before the company came to what it is known today, it experienced 1,000 rejections from investors as no one thought it was a good idea. They even pitched to Blockbuster CEO John Antioco. Blockbuster was the leading movie rental service at that time. They realized they were struggling to get enough funding for their startup. 

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They also encountered the dot-com bubble that burst in 2000 which added to the hesitation of possible investors due to significant losses of money.

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Eventually, their hard work paid off. In 2002, Netflix went public, raising $82.5 million in its initial public offering (IPO). This helped to solidify the company's position in the market and give it the resources it needed to continue growing and innovating.

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Then in 2007, they finally launched their streaming service which allowed customers to watch movies on their computers. Three years later, they further improved and gave the power for customers to watch on other devices such as smartphones, gaming consoles, and smart TVs.

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From 2011 to 2018 they continued to expand their reach to different countries and regions and also produced their original content. Some of them became commercial successes such as House of Cards, Stranger Things, The Crown, and 13 Reasons Why.

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What can everyone learn from Netflix founders?

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They didn’t stop innovating and taking risks which included experimenting with different business models, developing new technologies and features, and even creating original content. By taking risks and being willing to try new things, they were able to stay ahead of their competitors and attract and retain customers.

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Perseverance and hard work are important as there will be a lot of setbacks and obstacles along the way. Netflix founders continued to persevere despite numerous challenges they’ve met through the years.

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Be customer-focused so you can build a loyal and engaged customer base that will help fuel the company's growth and success.

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From a Geology graduate turned to a real estate failure, to circulation director, Marc Randolph pushed through whatever was in front of him. He took opportunities as a learning point. He didn’t allow his ideas to be limited by other opinions. 

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“If you have an idea, it doesn’t make a difference if it’s a good idea or a bad idea — the whole point is starting. Once you start, that is when you begin to figure out if it’s a good idea or a bad one. It informs you.”

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If you felt inspired reading this story, you can start taking action for your idea and find a community supporting your goals like Next Level Academy. 

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Are you a business owner or a content creator? Get access to a FREE masterclass to help you grow your business NOW.

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READ: Navigating Business Risks and Succeeding Like Netflix