I thought (one of the) main reasons for the categorization is how these companies look on a resume? Netflix is supposed to have a very "quality over quantity" approach to their hiring, they only want to keep employees who work really well and apparently pay fairly well for it, so having history there shows that at least they thought you were good or had a chance of being good enough for them. If you see job ads asking for a "rockstar developer" or something, that means the company is trying to imitate that approach (almost always with the goal of being able to have less employees who they still pay well below market rate).