Search results

Netflix is the market leader in the streaming entertainment industry. In 2020 and 2021, Netflix’s subscriber numbers and revenue increased. During the first two quarters of 2022, Netflix lost millions of subscribers, revenue and profit declined and its share price and market capitalization deteriorated. The purpose of this study is to investigate how and why a company with such a strong track record as Netflix can experience this crisis and, most importantly, how it overcame the crisis and returned to growth.

This case study investigates Netflix’s rise, fall and recovery between 2020 and 2023 using qualitative research methods. It examines earnings calls, transcripts and letters to shareholders as well as the views of investment analysts, journalists and academics.

Netflix turned its fortunes around because its leaders faced the crisis head-on. They acknowledged that previous strategic decisions were no longer working, that no advertisements were on the platform and that there was no account sharing and they reversed these decisions. Netflix also realized that it needed to innovate, so it partnered with Microsoft to execute its go-to-market with advertising. It also launched games, made strategic acquisitions of gaming studios and developed its capabilities with new products.

This is a valuable case study. Investigating how a company as successful as Netflix can encounter a severe decline and how it changed its strategies and tactics to reverse the decline provides important lessons for other companies.

Exploring a new conceptual framework for authentic followership (AF) comprised of three components: individual, dyadic and organisational. The purpose of this paper is to explain how the components of AF interact as a positive, non-linear feedback loop. It presents three propositions of positive outcomes arising from AF. First, AF builds follower’s strengths and capacities. Second, AF strengthens dyadic relationships between followers and leaders. Third, AF deepens and strengthens positive organisational culture thereby improving organisational performance. It discusses the practical significance of these propositions for followers, leaders and firms.

The paper provides an overview of AF. Then three propositions of positive outcomes arising from AF are presented. It identifies how these propositions could benefit followers, leaders and firms. In conclusion, it offers suggestions for future research directions and notes some limitations of this work.

The key finding of this paper is that AF could potentially strengthen the capacities and performance of followers, leaders and organisations if the propositions presented in this work are correct – if the three components of AF interact with each other as a positive feedback loop strengthening and reinforcing each component of AF. To establish the validity of the AF model and the three propositions the paper suggests that investigations in different empirical settings are undertaken: SME’s and multinational corporations, in different countries under different market conditions, with followers and leaders of different gender, age, education level, roles and tenure of employment.

The paper’s core contention that the components of AF interact as a positive feedback loop has significant practical implications – beneficial outcomes for followers, leaders and firms. P1 explains how AF enables followers to gain confidence, maturity and create solid foundations from which to thrive and flourish. P2 explains how dyadic relationships between followers and leaders could be strengthened, deepening trust and respect between each party, thereby enhancing leadership effectiveness. P3 explains how the dynamic processes of AF can strengthen and deepen positive organisational culture and enhance organisational performance.