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Netflix co-CEO shares his 1-word productivity strategy: It's ‘a powerful tool for focus,' says expert

Ted Sarandos speaks onstage during the Fast Company Innovation Festival 2024.
Eugene Gologursky | Getty Images Entertainment | Getty Images

Netflix has done a lot of things it's said it wouldn't, from becoming an ad-supported streaming platform to including live sports in its programming.

When asked why the company has repeatedly gone back on its word at the Fast Company Innovation Festival 2024 on Wednesday, Netflix co-CEO Ted Sarandos explained that, at the time, those declarations probably felt accurate. And even though things clearly changed, there were work benefits to making such definitive statements, he said.

"'Never' is a focusing word," said Sarandos, who's held his co-CEO role since 2020.

Earlier this year, Sarandos expressed his disinterest in live-streaming sports to shareholders during an earnings call. This month, Netflix — which has a market capitalization of $303.04 billion, as of Thursday afternoon — announced that it'll begin live streaming NFL games on Christmas Day.

The decision echoes Netflix's introduction of an ad-supported subscription plan in November 2022, less than three years after co-founder Reed Hastings declared that the company wouldn't include ads in its programming.

For Sarandos, declaring that the company would "never" go down certain paths was, at least partially, about productivity. It helped his teams stay focused on what they were doing at the time, he said on Wednesday.

Here's why.

'A powerful tool for focus'

Sarandos' approach can be effective, says Avery Morgan, a productivity expert and chief communications officer at essay writing platform EduBirdie.

"By setting clear boundaries, Netflix allows its teams to concentrate on immediate priorities without being distracted by every new idea or opportunity," Morgan tells CNBC Make It.

Focusing solely on the task at hand can be a useful tactic for individuals, too. "Prioritization is crucial for productivity," says Morgan. "And 'never' can be a powerful tool for focus by cutting out distractions and simplifying decision-making."

She suggests trying the "MoSCoW prioritization technique," which involves splitting tasks into four categories: must have, should have, could have, won't have. "The 'won't have' category, like Netflix's 'never,' doesn't mean something will never be included — just not right now," she says.

Sarandos similarly nodded toward the ever-shifting nature of how businesses sometimes operate: Industry landscapes and market conditions change, and companies have to change with them, he said.

"These are businesses," said Sarandos. "These are not religions."

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