Mitch Lowe – Co-founding Executive of Netflix

During the TM One Leap Summit 2022, we had the honour of inviting Mitch Lowe, a co-founding executive of Netflix as a keynote speaker. This article highlights the key takeaways from his speech.

Since its’ inception, the founders of Netflix have pursued a central and personal mission – to create the most convenient and seamless movie-viewing experience at home. In achieving this mission, they embarked on a decades-long journey which forced them to pivot their businesses, alter business models, and risk stable revenue sources on new products multiple times; decisions which culminated into the Netflix we all know today. What is the secret sauce that pushed Netflix to continuously evolve their offerings?

In his keynote, Mitch shared key moments and lessons from the Netflix journey that allowed them to constantly reinvent the way the world consumes entertainment:

1. Business leaders who push through the fear of failure
   • At the height of the dot-com bubble in 1998, the first Netflix business model was positioned as “putting a video store on the internet”. During a time of phones being the size of literal bricks, and floppy disks holding only 2.8MB of data at best, the founders were met with immediate resistance, even from closest friends and family. Despite the resistance and hesitance, the founders persevered on their missions and Netflix’s first business model of ala-carte DVD rentals was met with some success, doing about USD10 – 15 million in revenue, at the time.
   • For business leaders, the desire to prove naysayers wrong can be turned into a powerful motivator during tough times. When confronted with doubt, a sense of courage and conviction is critical in steering an idea towards success.
   • At the height of the dot-com bubble in 1998, the first Netflix business model was positioned as “putting a video store on the internet”. During a time of phones being the size of literal bricks, and floppy disks holding only 2.8MB of data at best, the founders were met with immediate resistance, even from closest friends and family. Despite the resistance and hesitance, the founders persevered on their missions and Netflix’s first business model of ala-carte DVD rentals was met with some success, doing about USD10 – 15 million in revenue, at the time.
   • For business leaders, the desire to prove naysayers wrong can be turned into a powerful motivator during tough times. When confronted with doubt, a sense of courage and conviction is critical in steering an idea towards success.
   • At the height of the dot-com bubble in 1998, the first Netflix business model was positioned as “putting a video store on the internet”. During a time of phones being the size of literal bricks, and floppy disks holding only 2.8MB of data at best, the founders were met with immediate resistance, even from closest friends and family. Despite the resistance and hesitance, the founders persevered on their missions and Netflix’s first business model of ala-carte DVD rentals was met with some success, doing about USD10 – 15 million in revenue, at the time.
     
   • For business leaders, the desire to prove naysayers wrong can be turned into a powerful motivator during tough times. When confronted with doubt, a sense of courage and conviction is critical in steering an idea towards success.
     
2. Only do what you can do better than everyone else
   • During the early 2000s, business appeared to be stagnating as customers were not returning to Netflix on a regular basis. A focus group participant mentioned in passing that by the time the rental DVD arrived at his house, he was no longer in the mood to watch the DVD. This statement presented an innovation opportunity to Netflix: how could the company shorten the amount of time between wanting to watch a movie and consuming the movie to almost zero?
   • The answer lay in moving away from the rental business model, which was already saturated with competitors such as Blockbuster. Netflix subsequently pivoted into the subscription model which endures until today.
   • Ultimately, focussing on doing what no one else does and doing it well can be a key growth driver for businesses. By focussing efforts on doing what no one else was, Netflix was able to find a specialty and hone in on it more effectively than other players in the market; ultimately owning the business model and making it signature to the company. Build a market in which no other company can compete with you.
   • During the early 2000s, business appeared to be stagnating as customers were not returning to Netflix on a regular basis. A focus group participant mentioned in passing that by the time the rental DVD arrived at his house, he was no longer in the mood to watch the DVD. This statement presented an innovation opportunity to Netflix: how could the company shorten the amount of time between wanting to watch a movie and consuming the movie to almost zero?
     
   • The answer lay in moving away from the rental business model, which was already saturated with competitors such as Blockbuster. Netflix subsequently pivoted into the subscription model which endures until today.
     
   • Ultimately, focussing on doing what no one else does and doing it well can be a key growth driver for businesses. By focussing efforts on doing what no one else was, Netflix was able to find a specialty and hone in on it more effectively than other players in the market; ultimately owning the business model and making it signature to the company. Build a market in which no other company can compete with you.
     
3. Be aware of growing trends but stay patient with ideas that don’t immediately take off
   • Along with the pivot into the subscription model, Netflix became aware of the growing appeal of on-demand online media among consumers as the early forms of video and audio streaming consumption began to grow. In the early 2000’s, Netflix developed its’ first streaming product: the “Netflix box”. It would convert internet signals to be compatible with televisions, arguably an early version Smart TV. The set-top box would enable viewers to stream movies and TV shows from Netflix’s then-nascent “Watch Now” catalogue.
   • When pitched to big consumer electronics retailers in 2005, the product was rejected as nobody believed there would be an audience who wanted to watch long-form content on the internet. However, when YouTube and Spotify gained popularity between 2006 – 2008, it rapidly altered the public’s expectations towards online platforms and entertainment, and the market appetite for streaming content began to grow exponentially.
   • It turned out that the public was, indeed, willing to consume content over the internet, but not at the expense of additional hardware. Netflix merely needed to shift away from the “Netflix box” towards creating a reliable streaming software, with higher content quality than their competitors. Thus, Netflix began their venture into streaming and never looked back from there.
   • A keen eye on changing consumer habits and the ability to spot potential gaps to open within markets are vital to driving growth. However, there is merit to having patience and perseverance when ideas are not immediately taken up by customers. While innovation is vital to meeting new customer expectations, timing and patience is important too when launching novel products and services.
   • Along with the pivot into the subscription model, Netflix became aware of the growing appeal of on-demand online media among consumers as the early forms of video and audio streaming consumption began to grow. In the early 2000’s, Netflix developed its’ first streaming product: the “Netflix box”. It would convert internet signals to be compatible with televisions, arguably an early version Smart TV. The set-top box would enable viewers to stream movies and TV shows from Netflix’s then-nascent “Watch Now” catalogue.
     
   • When pitched to big consumer electronics retailers in 2005, the product was rejected as nobody believed there would be an audience who wanted to watch long-form content on the internet. However, when YouTube and Spotify gained popularity between 2006 – 2008, it rapidly altered the public’s expectations towards online platforms and entertainment, and the market appetite for streaming content began to grow exponentially.
     
   • It turned out that the public was, indeed, willing to consume content over the internet, but not at the expense of additional hardware. Netflix merely needed to shift away from the “Netflix box” towards creating a reliable streaming software, with higher content quality than their competitors. Thus, Netflix began their venture into streaming and never looked back from there.
     
   • A keen eye on changing consumer habits and the ability to spot potential gaps to open within markets are vital to driving growth. However, there is merit to having patience and perseverance when ideas are not immediately taken up by customers. While innovation is vital to meeting new customer expectations, timing and patience is important too when launching novel products and services.
     
4. Encourage a culture of innovation and improvement across the entire company
   • Netflix’s pivot into streaming, and creating a superior product compared to their competitors effectively cemented the company’s position as a market dominator. However, the challenge remained in keeping customers loyal to Netflix. The key to maintaining a loyal customer base then lay on making small innovations which improved the streaming experience. The platform’s features such as the “Skip Intro” and “Next Episode” button have now become mainstays of the streaming experience, even amongst competitor streaming platforms.
   • These features were not conceptualised by specialised teams. Many of the smaller features were ideas from those outside the development team, such as a warehouse worker. The culture of the company was built on a desire to make the platform better, across all employees.
   • Netflix understood that the innovative spirit could come from anywhere and anyone, but only if the environment allowed for ideas to be freely shared and explored. Nurturing cultures that are open to suggestions and critiques with the honest interest of product improvement is insurmountably useful in enabling companies to constantly innovate and transform.
   • Netflix’s pivot into streaming, and creating a superior product compared to their competitors effectively cemented the company’s position as a market dominator. However, the challenge remained in keeping customers loyal to Netflix. The key to maintaining a loyal customer base then lay on making small innovations which improved the streaming experience. The platform’s features such as the “Skip Intro” and “Next Episode” button have now become mainstays of the streaming experience, even amongst competitor streaming platforms.
     
   • These features were not conceptualised by specialised teams. Many of the smaller features were ideas from those outside the development team, such as a warehouse worker. The culture of the company was built on a desire to make the platform better, across all employees.
     
   • Netflix understood that the innovative spirit could come from anywhere and anyone, but only if the environment allowed for ideas to be freely shared and explored. Nurturing cultures that are open to suggestions and critiques with the honest interest of product improvement is insurmountably useful in enabling companies to constantly innovate and transform.
     
5. Combining innovation with actionable data
   • Small innovations came from everywhere within the company, but the engineering and development team also created several ground-breaking innovations to the Netflix service. The most notable innovation was the team’s initiative to analyse every frame of every content being viewed by a user, which would determine a user’s experience. For example, if a viewer was on a low-bandwidth internet connection, Netflix’s algorithm would adjust to a different version of the content best suited to the user’s environment to ensure the smoothest viewing experience.
   • 10 years ago, when streaming first began gaining popularity, the active collection, usage and analysis of data to improve on a user’s experience was considered a breakthrough. Today, the practice has demonstrated its’ value across several industries and verticals within businesses. Businesses are inundated with data, but a core principle regarding data remains relevant and valuable – the ability to identify relevant, useful data and turn it into actionable improvements to the user’s experience will endure as a powerful tool for businesses.  
   • Small innovations came from everywhere within the company, but the engineering and development team also created several ground-breaking innovations to the Netflix service. The most notable innovation was the team’s initiative to analyse every frame of every content being viewed by a user, which would determine a user’s experience. For example, if a viewer was on a low-bandwidth internet connection, Netflix’s algorithm would adjust to a different version of the content best suited to the user’s environment to ensure the smoothest viewing experience.
     
   • 10 years ago, when streaming first began gaining popularity, the active collection, usage and analysis of data to improve on a user’s experience was considered a breakthrough. Today, the practice has demonstrated its’ value across several industries and verticals within businesses. Businesses are inundated with data, but a core principle regarding data remains relevant and valuable – the ability to identify relevant, useful data and turn it into actionable improvements to the user’s experience will endure as a powerful tool for businesses.  

As businesses continue its’ rapid expansion into the digital world, many business leaders may feel that the landscape has become incredibly crowded and impossible to compete in. However, truly making a difference in the world and providing great services still hinge on tried-and-true traits. Business leaders need courage, the ability to find a gap in the market and fill it better than anyone else, patience, an innovative and supportive team, and the ability to turn customer information into better experiences. These may not be new tips, but they have indeed proven to be valuable to Netflix and certainly, to many other titans of business out there.

Visit www.tmone.com.my for more information on how TM One’s digital and smart solutions can enable and accelerate your Next business innovation and transformation

Kuala Lumpur, 20 June 2023 – In collaboration with TM One, the enterprise and Government sector solutions arm of TM, ParkCity Medical Centre (PMC), a multidisciplinary hospital under Ramsay Sime Darby Health Care (RSDH) is proud to announce the launch of i-Kiddo Ward with smart patient suite features. It aims to offer high-quality services and ensure a better overall experience for patients and their families. This is one of PMC’s digitalisation initiatives that leverages digital healthcare solutions to revolutionise patient care experiences.

The i-Kiddo Ward is PMC’s new paediatric ward equipped with cutting-edge room capabilities, driven by Internet of Things (IoT) technology for automation and surround control. It is designed to enhance patient comfort, streamline nursing care activities and provide convenience to parents and caregivers.

Each of the 35 rooms within the i-Kiddo Ward creates a home-like environment within the hospital setting, allowing patients to customise their in-patient environment. Patients can effortlessly control lighting, air conditioning, curtains and reduce the need for assistance from nursing staff through user-friendly interfaces. These innovative features enhance the patients’ experience and support parents in ensuring their children’s utmost comfort and well-being throughout their hospital stay.

“In collaboration with TM One, we take great pride in being the first hospital to leverage their Smart Patient Suite Solution in our innovative i-Kiddo Ward. By embracing digital technologies, we are revolutionising the way patients and their families experience healthcare within our hospital. This has marked a significant milestone in our digitalisation journey,” said Mr. Peter S. Kasinathan, CEO of ParkCity Medical Centre.

“We are excited to partner with Ramsay Sime Darby Health Care in launching our first Smart Patient Suite. This innovative solution will provide an enhanced patient-centric care experience that puts the patient at the centre of their health journey. By integrating IoT, AI, and digitalisation, RSDH is at the forefront of healthcare innovation. This collaboration will revolutionise patient care and improve in-patient experience through the latest technology. We’re proud to play a role in shaping the future of the nation’s future healthcare,” said Shazurawati Abd Karim, Executive Vice President, TM One.

As part of its ongoing digitalisation efforts, PMC has implemented a smart queue system for outpatient services, ensuring seamless and efficient patient flow. A smart car parking system utilising car number plate recognition has also been recently introduced. Looking ahead, the hospital has several other digital healthcare initiatives in the pipeline, including an innovative ward that enables patients to use bedside terminals for ordering meals, monitoring medication and accessing personal treatment information.

Peter Hong, Group Chief Executive Officer of Ramsay Sime Darby Health Care (RSDH) said, “We are proud of our collective efforts in driving digitalisation, and it exemplifies our commitment to leveraging technology for enhanced patient care. Through the collaboration with TM One, we aim to harness the power of digitalisation to create a seamless healthcare ecosystem, providing more personalised and patient-centred services to our community, ultimately shaping a brighter and smarter future for healthcare together.”

For more information on PMC and its services, visit https://parkcitymedicalcentre.com/

• Installed 233 PoPs under phase 1 with 100% completion, across northern, Sabah and Sarawak
• Enabled greater digital inclusion and opportunities to all layers of community

Telekom Malaysia Berhad (TM) has today announced the completion of its new fibre optic network hub or point of presence (PoP) project phase one (1) installations, across northern region, Sabah and Sarawak. The launch ceremony, which was officiated by YB Fahmi Fadzil, Minister of Communications and Digital, took place at SMK Padang Terap, Kuala Nerang, Kedah. Also present were Dato’ Haji Pkharuddin Bin Haji Ghazali, Director-General of Education and Dato’ Sri Haji Mohammad Bin Mentek, Secretary-General, Ministry of Communications and Digital.

PoP is a place where different devices connect to each other and to the internet. In simple terms, PoP brings fibre closer to users. By setting up PoP locations near schools, people in rural and remote areas can get better and faster internet services in their homes, instead of relying on mobile internet. This will improve internet access and connectivity for more people in the community.

During the ceremony, YB Fahmi highlighted the significant benefits and opportunities that the new PoPs would bring. The new PoPs represent a major step forward in the Government’s efforts to narrow the digital gap and promote digital inclusion across Malaysia.

A total of 4,370 PoPs had been planned under the 12th Malaysia Plan (12MP) where 4,323 PoPs will be installed near rural schools and 47 PoPs near industrial area. Phase one (1) of the project, involves 677 sites and the remaining will be implemented under phase two (2) over the span of three (3) years, 2022-2025. A total of 233 PoP circuits were installed under phase 1, with 100% completion achieved by TM, ahead of other industry players.

“We are thrilled to see the progress and achievements of this project, which will bring significant benefits and opportunities to the community, including improved internet quality, economic development and the development of new infrastructures,” said Shazurawati Abdul Karim, Executive Vice President of TM One.

PoP will create a more balanced and inclusive regional development, boosting the growth of new technologies like 5G and future generations of communication technologies. Through this initiative, users in TM’s PoP area have now reached over 9,000 and are increasing. A total of 58 of its users are schools that have subscribed to Unifi services. The widespread internet accessibility will not only help to develop the rural economy but more importantly allow learning materials to be downloaded, to improve the quality of education in schools, equipping the future generations with a wealth of knowledge.

“As the nation’s telecommunications leader, and enabler of Digital Malaysia, TM is committed to support the nation’s development agenda through the benefits brought by hyperconnectivity and digital solutions, which will accelerate digital adoption and new economic growth,” added Shazurawati.

“The presence of PoP can attract technology companies, start-ups and other businesses that require a high-speed internet connection to operate. This can create more job opportunities, increase innovation, and stimulate economic growth in local communities,” concluded Shazurawati.

The collaboration between TM and the Government demonstrates the shared commitment to deliver digital inclusivity throughout Malaysia. For phase two (2) of PoP project, TM has been awarded with 174 sites in the central region. This phase is expected to further boost digital connectivity and economic development for Malaysia.

• Integration of TM’s robust and secure digital infrastructure for fixed and wireless connectivity and smart solutions will position SSIP as one of the leading industrial parks in Selangor to implement end-to-end digitisation across facilities
• Smart solutions for businesses, industries, residences and community with advanced analytics to deliver a smarter and more efficient city for a greener Malaysia

KUALA LUMPUR, 9 AUGUST 2022 – NCT Group of Companies (NCT) and Telekom Malaysia Berhad (TM) through its enterprise and public sector business solution arm, TM One, have today signed a Collaboration Agreement for the integration of end-to-end digital solutions for NCT’s landmark Selangor Smart Industrial Park (SSIP).

The collaboration is aligned with NCT’s aspirations to establish dynamic and future-ready property developments while redefining Malaysia’s industrial park concept, with SSIP on track to become the first Managed Industrial Park (MIP) certified park in Malaysia.

Powered by TM’s robust and secured digital infrastructure for both fixed and wireless connectivity, as well as digital solutions including Smart Services, ICT Solutions, Cloud and Cybersecurity Services, among others, SSIP will offer a differentiated experience with the latest in smart innovations – becoming one the leading developments in Malaysia to effectively implement end-to-end digitisation across all its facilities that will enable more efficient, modern and sustainable operations.

In addition to the digitalisation of business and residential facilities, SSIP will also include an AI-managed centralised employee quarters complete with smart surveillance, supporting NCT’s close to 10,000 workforce more efficiently, in a safer and secured environment. It will also house a Smart Wellness Centre leveraging on TM One’s end-to-end comprehensive digital solutions.

SSIP will reflect NCT’s Environmental, Social and Governance (ESG) aspiration and decarbonisation goals, with plans for 1,000 units of solar-ready factories and warehouses. Coupled with TM’s Smart Service solutions such as Smart Surveillance, Smart Street Light, Smart Building, Smart Premise, Smart Parking and Smart Community, this will also factor into creating a comfortable and greener ecosystem in SSIP.\

Dato’ Sri Yap Ngan Choy, Group Managing Director of NCT said “It is a privilege to work alongside TM to ensure full suite of connectivity to power our SSIP. The role of TM is crucial in providing the groundwork and framework to realise our vision of creating a fully integrated end-to-end digital solution for our clients. With the development and application of advanced technology, we aim to set a new benchmark to transform the design of industrial parks in the country while playing an active role in advancing Malaysia’s digital aspirations. Coupled with the immense economic potential, SSIP will continue to enhance Selangor’s position as the top investment destination in the country.”

Shazurawati Abd Karim, TM One’s Executive Vice President shared, “We are excited to embark on this alliance with NCT and to support their aspirations to establish a smart, efficient, resilient and sustainable industrial park – one that will redefine the digitalisation of property developments in Malaysia.”

“Aligning with TM’s mission to become a human-centred technology company, our comprehensive solutions from connectivity to smart services and digital innovations will advance the quality and efficiency of businesses and residents within SSIP – taking transformation forward for future communities,” she concluded.  

For further information on TM One, visit www.tm.com.my/tmone

Recognised for extensive capabilities and resources to address cybersecurity gaps among organisations and support data protection efforts in the evolving digital space

TM One, the enterprise and government sector solutions arm of Telekom Malaysia Berhad (“TM”), was named the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year for 2022.

The award was decided based on a series of detailed evaluations following Frost & Sullivan’s best practices criteria, in which TM One excelled as a service partner in addressing Malaysia’s enterprise and government sector cybersecurity needs.

“TM One is recognized based on its extensive cybersecurity capabilities and resources. With a full suite of cybersecurity services and infrastructure, coupled with a deep understanding of the Malaysian market landscape, TM One continuously upholds a strong reputation of effectively addressing its customers’ security needs,” said Anh Tien Vu, Industry Principal, Global Cybersecurity Research Team at Frost & Sullivan.

Shazurawati Abd Karim, Executive Vice President, TM One, said: “We are honoured to receive the Frost & Sullivan Malaysian Cybersecurity Services Company of the Year Award. With cybersecurity emerging as a top priority for organisations in their transformation journey, we are committed to growing our end-to-end solutions so that we can provide our customers digital freedom and peace of mind as they expand their businesses in the digital space. Understanding their unique business needs, we work with organisations to assess their cybersecurity capabilities and provide advisory services through our dedicated TM One Cyber Defense Centre (CYDEC) – helping them make the right choices to respond to cyber threats more effectively.”

Addressing Cybersecurity Gaps among Enterprises and Public Sector

More Malaysian organisations are now investing heavily in cybersecurity. As they become increasingly present and vulnerable in the digital space, organisations need to adopt a stronger security posture in their information technology, operational technology, and cloud infrastructure capabilities.

Shazurawati said, “One of the key challenges for organisations is the shortage of in-house security expertise, professionals, and tools, requiring them to outsource their security operations. By working closely with customers to assess their security posture, technology maturity, and business needs, TM One offers customised solutions for managed security services, consultation and advisory, and other value-added services to help them navigate today’s complex technological landscape.”

TM One is also strengthening the public sector’s cybersecurity, working alongside the Malaysian Government to enhance digital connectivity and smart innovations for cities and industries to propel the nation towards becoming a digital economy. In addition to connectivity, TM One continues to invest in local data centres, digital infrastructure and services, ensuring data sovereignty remains within Malaysian borders while bringing global best practices to the nation’s public sector.

Its investments to strengthen Malaysia’s Critical National Information Infrastructure (CNII) is one of its efforts to protect government and public data, with its cybersecurity solutions developed in compliance with Bank Negara Malaysia’s Risk Management in Technology (RMiT) policy and the Personal Data Protection Act 2010 (PDPA).

Anh Tien Vu said, “One consideration that stood out for Frost and Sullivan was that TM One has earned endorsements and collaborations from local cyber authorities, such as Cybersecurity Malaysia and the National Cyber Security Agency (NACSA) of Malaysia through its implementation of best practices, and world-class infrastructure backed by experts. Frost & Sullivan commends TM One’s steadfast efforts in providing cybersecurity services that exemplify this implementation of best practices, which have benefited customers and communities tremendously.”

“On top of developing our own end-to-end solutions, TM One continues to strengthen its partnership ecosystem, collaborating with companies from various security domains to diversify its offerings and coverage. This includes FNS Value Co. Limited, the sole distributor of its Blockchain Secure Authentication solution in Malaysia, which helps secure digital transactions and online credentials, and Telefónica Tech – a global leader in cybersecurity, Cloud and IoT, as a partner in delivering Digital Risk Protection,” explained Shazurawati.

“Our efforts to expand our cybersecurity services and to provide customers with cutting-edge security reflect our commitment to tackling today’s growing cybersecurity concerns. With next-gen technologies such as 5G opening up both new opportunities and threats, TM One is poised as the enabler for organisations’ next advantage and security, today and tomorrow,” she concluded.