Reed Hastings

Netflix

Who?

Born October 8, 1960, in Boston, Massachusetts, Reed Hastings went to Stanford University to study computer science engineering. After graduating he landed a job with the company Adaptive Technology. This is where he began to learn about the way companies function and operate.

Next Step

After working with Adaptive Software for a few years he left to go pursue his own company, Pure Software. This is where he gained experience working with customers and learning the tasks of the head of the company. After five years of ups and downs the company merged with Atria Software. Shortly after, Reed sold the company for $700 million.

http://www.inc.com/magazine/20051201/qa-hastings.html

How it all Started

One day, after paying a $40 late fee on a rental film, Reed began thinking of ideas for a new start-up. After going to the gym later that day he thought to himself about the way a gym membership was set up. He liked the fact that you he had to pay a flat-rate each month for the gym and could workout as much as he liked. He decided that if he could apply this same concept to a film rental service he would have huge success.

Development of Netflix

In 1997, Hastings invested $2.5 million in start-up cash for his new his new idea; which at first was a service that only offered a pay-per-rental model. That ran selling each rental for 50 cents each, with only 925 movies to choose from. It was not until 1999 that Netflix dropped the pay-per-rental concept and began using the monthly subscription format.

Rapid Growth

In 2000, Netflix was received an acquisition offer from Blockbuster for $50 million, however, the offer was turned down. By 2005, Netflix offered over 35,000 movies and shipped 1 million DVD's out every day. In 2007, the company shipped its 1 billionth DVD!

Transition to Online

As time went on, Hastings realized that to keep up with its success, Netflix would have to adapt with the changes in technology. Netflix began a online video streaming service for its members; allowing them to access their account from any compatible device. By 2010, Netflix had gone from being one of the largest customers of the USPS service to the biggest source of internet traffic in the US.

http://www.forbes.com/sites/petercohan/2013/10/22/netflixs-reed-hastings-is-the-master-of-adaptation/

50 Million Subscribers

In July 2014, Netflix announced it had over 50 million global subscribers, with 36 million of them in the US alone.

http://www.businessweek.com/articles/2014-07-21/netflixs-50-million-subscribers-get-tons-of-original-shows

Hastings Net Worth Approximately $1 billion

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Other Companies that Started as a Result of Netflix

Entrepreneurial Qualities

Reed Hastings is a good entrepreneur because of his drive to succeed. Even after selling his first company for $700 million he did not stop to retire early. He began thinking of ideas for new startups. When Netflix was in full swing he was able to adapt to the changing technology to help better suit the needs of his customers. He has succeeded with both of his companies because of his brains and his willingness to listen to others and ability to predict what changes need to be made before it's too late.

Life Without Netflix?

Although I believe my life would be unchanged without the invention of Netflix, millions of people would disagree with my opinion. For many people, Netflix is a source of affordable entertainment; without it, they would be forced to overpay to go out to see a movie or buy the actual DVD.