That Will Never Work by Marc Randolph
That Will Never Work by Marc Randolph

Business · 2019

That Will Never Work review

by Marc Randolph

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The verdict

That Will Never Work is Marc Randolph's memoir of co-founding Netflix with Reed Hastings, covering the period from the original idea in 1997 through the company's IPO in 2002.

Best for operators, founders, and managers. Reading time: 5h 45m.

That Will Never Work by Marc Randolph
That Will Never Work by Marc Randolph

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What it argues

That Will Never Work is Marc Randolph's memoir of co-founding Netflix with Reed Hastings, covering the period from the original idea in 1997 through the company's IPO in 2002. Randolph served as Netflix's first CEO before stepping aside for Hastings, and his account is a founder's story told from the inside — which means it's specific, honest, and less polished than the triumphant retrospectives that most tech memoirs become.

The book's title comes from Reed Hastings's reaction to Randolph's early DVD-by-mail pitch. Hastings thought the economics wouldn't work; most people around Randolph agreed. The phrase becomes a refrain throughout the book — the obstacle that every iteration of the idea had to overcome. Randolph describes testing the concept by mailing a used CD to himself to see if it would arrive unbroken. It did. That single experiment justified moving forward, and his preference for small, cheap tests over elaborate analysis is one of the book's recurring themes.

What it gets right

  1. 1.

    Small, cheap tests beat elaborate analysis. Randolph mailed a used CD to himself to test whether DVDs would survive postal delivery. That one experiment justified building the company.

  2. 2.

    The idea matters less than the willingness to test, adjust, and iterate. Netflix went through multiple business models before the subscription model worked; the original idea was almost irrelevant.

  3. 3.

    Knowing what you're not good at is as important as knowing what you are. Randolph recognized that Reed Hastings was better suited to run Netflix at scale and stepped aside rather than staying in the wrong role.

What it covers

Who wrote it

Marc Randolph is the co-founder and first CEO of Netflix, where he led the company from its founding in 1997 through its IPO in 2002, after which he transitioned to a board role. Before Netflix, he worked in direct marketing and co-founded or joined several other companies with Reed Hastings. After leaving Netflix, he became an entrepreneur and mentor in the startup community and hosts a podcast and newsletter on entrepreneurship. That Will Never Work, published in 2019, is his account of Netflix's founding years and his most prominent public statement about what he learned from building the company.

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