Almost all big corporations are organized in a hierarchy. Netflix is adopting a new model. Following text is taking from Netflix.com:
"A few things you may not know about us
• You won’t have any direct reports. You will, however, have bright technology, design, research, customer service, marketing and operations partners, and plenty of resources to execute your vision. Our approach is to stay “lean and mean”; building management layers adds complexity that often stands in the way of results. This approach gives you time to think “big picture” then get a team focused on a few key ideas that will drive innovation.
• In order to attract deep talent, Netflix pays at the 90th percentile. Solving hard problems requires highly talented people, and we compensate appropriately."
Doesn't this make more sense?