What is Netflix really costing you?

"All the answers are out there, but people still watch five hours of TV a day and complain about opportunity." —Jason Calacanis

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The true cost of Netflix

When Netflix IPO'd in May of 2002, the company was valued at a mere $300 million. Over the last 15 years Netflix has been on a rampage capturing 100 million subscribers and $81 billion in market cap (as of 2017; updated: market cap is $136 billion as of Nov-2022).

Yet Netflix has apprehended something far more valuable: our precious time.

Of course, there's a time and a place for entertainment: who doesn't enjoy getting into a good show every now and again?

However, this entertainment comes at a dear cost far exceeding the $11.99/mo membership fee. If you believe time is our most precious commodity, then we must acknowledge the massive opportunity cost that we sacrifice every night in front of the screen.

Let's start with some facts

• The average subscriber spends 20 hours per week on Netflix

• . . . That's 80 hours per month

• 70% of Netflix users binge-watch shows

• Netflix streamed 10 billion hours last month

• The Netflix catalog is approximately 115,000 hours of content (21 years; waking hours)

Sources: DMR, CinemaBlend, Variety

20 hours per week is a lot

Let's start by acknowledging the obvious: 20 hours per week is a LOT of time. In most states, 20 hours per week is considered part-time employment. With 55 million subscribers in the US, you can say that 17% of Americans have a part-time job watching Netflix (US population = 323 million). This absurd reality provokes a crucial question: is this really the best use of our time?

The importance of personal development 

The short answer is no. Watching Netflix for 20 hours per week is likely not the best use of our time. Life is short. Really short. And for life to improve, we must heed the guidance of legends like Jim Rohn when he writes:

"Learn to work harder on yourself, than you do on the job."

Side note: if you haven't read The Art of Exceptional Living by Jim Rohn, it comes highly recommended from most of the executives we work with.

Only by building the habit of daily personal development can we truly improve our personal and professional wellbeing. Netflix is kryptonite to this endeavor.

"Want to watch a show?"

The question sounds innocent enough. Enticing, even. But next time you ask—or get asked—this question, make sure you keep this perspective in mind:

• The typical human is awake for 15 hours per day, or 105 hours per week

• As stated, Netflix is commanding 20 hours per week (on average)

• 20 hours / 105 hours = 19% of our waking hours are devoted to Netflix (and/or other streaming services)

Breakdown: How we spend our time in a given week

Hours per week. Source: https://graphics.wsj.com/time-use/

What else could we be doing?

Below is a chart of Netflix binge sessions and their personal development equivalent.

On Netflix you could watch:	Or you could:	Time required
1 episode - Archer	Run 2-3 miles	22 minutes
1 episode - House of Cards	Write a blog post	50 minutes
2 episodes - The Blacklist	Bike 20 miles	1.4 hours
3 episode - Orange is the New Black	Read 82pp. of a book	2.75 hours
4 episodes - Stranger Things	Learn 5 new subjects on Khan Academy	3.2 hours
Season 1 - House of Cards	Complete Stanford's CS101 online	10.8 hours
Season 1 & 2 - Orange is the New Black	Learn how to program in C	23.8 hours
All 5 seasons - House of Cards	Train for a marathon	54.2 hours
All 7 seasons - The West Wing	Become conversational in Italian	112.9 hours
All seasons - HoC, OitNB, The West Wing	Read 34 of the 51 Harvard Classics	227.1 hours
21 weeks of Netflix (at 20 hours/week)	Build the first version of Facebook	420 hours

You are always choosing

So the next time you're tempted to binge of Netflix, keep the above list in mind. Realize that you are always choosing: a choice to watch Netflix for 3 hours is also choice to NOT learn 5 new subjects on Khan Academy. A choice to weekendbinge on 2 seasons of your favorite show, is a choice to NOT learn how to program at a basic level. 

Every decision has tradeoffs, and the more we keep this in mind, the better off we'll be on our quest for transformative personal development.

Next episode playing in. . .

You can also disable autoplay: https://help.netflix.com/en/node/2102. This one decision could help reduce your Netflix consumption by up to 50%.

I'm curious: what would you do with the extra time?

3 Words to Describe You

Two guys grabbing dinner in San Francisco

I recently had the pleasure of catching up with one of my old teammates from Optimizely. He's doing well: director-level position, managing a growing team, and meanwhile hyper-focusing on how he can take it to the next level as a leader.

So I asked him a question:

"If I were to meet with your team over drinks, and I asked each of them to describe you in three words, what would you want them to say?"

Simple question. Long, thoughtful answer.

His final answer: 

• "Caring, consistent, and challenging." [Three C's FTW]

While the answer was revealing, the true value was in talking through the various tradeoffs one makes as a leader:

• Friend vs. boss

• Lenient vs. stern

• Strategic vs. tactical

• Inspirational vs. directive

• Spontaneous vs. predictable

And while none of the above are mutually exclusive, a leader has limited time. Very limited. So you have to explore: what is your management philosophy? How do you want to be perceived? Even. . . remembered?

So I challenge you:

What are the 3 words you would want your team to describe you?

If you're still staring instead of thinking, below is a insightful list of questions your team is likely asking themselves right now.

Credit due to Fred Kofman’s book, Conscious Business, in which he crafted these questions about communication clarity, mission, shared values, respect and teamwork.

1. Do I know what is expected of me at work?

2. Do I have the materials and equipment I need to do my work right?

3. At work, do I have the opportunity to do what I do best every day?

4. In the last seven days, have I received recognition or praise for doing good work?

5. Does my supervisor, or someone at work, seem to care about me as a person?

6. Is there someone at work who encourages my development?

7. At work, do my opinions seem to count?

8. Does the mission/purpose of my company make me feel my job is important?

9. Are my co-workers committed to doing high-quality work?

10. Do I have a best friend at work?

11. In the last six months, has someone at work talked to me about my progress?

12. This last year, have I had opportunities at work to learn and grow?

The DBT Ventures team hopes this article has been helpful in urging you to proactively control what 3 words describe you as an executive.