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That Will Never Work summary
That Will Never Work
- Randolph's wife told him the idea would never work.
- He mailed a CD to himself to test if discs could survive the mail.
- Nobody knows which ideas will work, so test fast and cheap.
- Netflix almost sold to Blockbuster, which turned it down.
- Randolph stepped aside as CEO for Reed Hastings.
Who told Marc Randolph Netflix would never work?
His own wife, among many others. Randolph says nobody knows which ideas will work, so the only answer is to test them quickly and cheaply. He mailed himself a CD to see if a disc could survive the post, and that small test led to the DVD-by-mail business.
Actionable
- Find the cheapest test of your idea and run it this week.
- Write down the reasons people say your idea won't work.
- Ask what you'd test if you had one day.
- Think about what role you're best at in your company.
Lessons
- Nobody knows, so test.
- Small experiments beat big plans.
- Rejection from big players can be lucky.
- Founders don't always make the best long-term CEOs.
Quick answer
Our summary of That Will Never Work by Marc Randolph (2019), in our own words.
What 125x is: 125x is a web app at 125x.app. You connect your YouTube subscriptions, and it gives you a feed of the latest videos from the channels you follow, each with a summary: a verdict, the 5 key takeaways, and the spoiler, plus Actionable and Lessons tabs with more tips. You read that and decide what's actually worth opening.
Open 125xWho are Marc Randolph and Netflix?
Marc Randolph co-founded Netflix in 1997 and was its first CEO.
He later became a mentor and speaker for startups.
The story in 5 parts
- Idea brainstorms on the commute.
- The CD test.
- Launch in 1998.
- The Blockbuster meeting.
- Handing the CEO role to Hastings.
A closer look
Randolph explains that early Netflix tried many models before finding one that worked. They sold DVDs as well as renting them, and dropped sales to focus on rentals. Later they moved from per-rental fees to a monthly subscription with no late fees.
He also writes about the moment Reed Hastings told him the board wanted Hastings as CEO. Randolph describes it as painful but right, and says recognizing what role you're best at is one of the most important founder skills.
Business lessons from the book
- Test before you build.
- Ignore 'that will never work'.
- Stay open to change.
- Know your role.
Who should read it
Early-stage founders and anyone with an idea they're scared to test.
Tips from readers, plus one of ours
- Look for the CD test. a review at Falltide highlights the moment Randolph mailed a used CD in a greeting card envelope to see whether a disc could survive the post. It's the clearest example of testing an idea cheaply before building it.
- Notice how long the real model took. The same review points out that the subscription with no late fees came more than a year after launch, after renting single DVDs didn't catch on.
- Read it for the near misses. Kirkus Reviews calls it a story of creativity, luck and perseverance, and points to the failed Amazon deal and the Blockbuster meeting as moments the company could have gone another way.
- Pay attention to the layoffs chapter. Reviewers say Randolph is honest about how painful it was to cut staff even with 200,000 subscribers.
- Agree or disagree: some readers say it's just a Netflix history. We disagree. The ideas behind each test, and why most of them failed, work for any small project, including a side hustle.
- Our unusual tip: before your next idea, write down the smallest real test you could run this week for almost nothing, like Randolph's CD in an envelope. If you can't think of one, the idea probably isn't clear enough yet.
Watch them in their own words
Hear it from Marc Randolph and the people around them in our interview summaries:
About this summary
We wrote this summary in our own words from the book and its public reviews. It follows the same layout as a 125x video summary: a verdict, 5 takeaways, the answer to the big question, and Actionable and Lessons tabs. More in entrepreneur biographies.
FAQ: questions people ask
What is That Will Never Work about?
Marc Randolph's story of co-founding Netflix.
Did Blockbuster turn down Netflix?
Yes. Randolph describes Blockbuster passing on a deal to buy Netflix.
Is That Will Never Work worth reading?
Good value given. It's funny and practical.
Who was Netflix's first CEO?
Marc Randolph, who co-founded the company with Reed Hastings. He later handed the CEO role to Hastings, which he describes in the book.
How did Netflix test its idea?
Randolph mailed a CD to Hastings in a greeting card envelope to see if a disc would arrive undamaged. It did, and the DVD-by-mail business grew from there.
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- Every 125x guide
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