A name that is now commonly recognized in almost every urban household – “Netflix”, started when Reed Hastings, its Co-Founder, got a late fee for a movie rental, back in 1997. After roping in Mark Randolph, a tech-entrepreneur, both of them started Netflix as a DVD rental business which gradually shifted to streaming entertainment content. Described by Mark Randolph as focused and courageous, Reed Hastings had transformed the entertainment viewing experience not once, but twice. But before we dive into what and how he managed to do that, let’s understand Reed’s upbringing.
Early Years
Born in 1960 in Boston, Massachusetts to an attorney, Reeds grew up as a bright and adventurous young man. After completing his bachelor’s in mathematics, he went on to serve in the Marine Corps. Overcome by a sense of both service and adventure, he joined the Peace Corps and travelled to Swaziland where he taught high school mathematics for two years. Post returning home, he pursued Master’s in Computer Science and by the time of his graduation, he knew he wanted to start his own business one day. His first company was Pure Software, which developed tools of troubleshooting software. On its opening day at the stock market, shot up 75%, to become one of the most successful IPO in 1995 and was soon sold off.
Starting Netflix and The Journey Onwards
In 1997, Reed got frustrated when he received a fine for late fee payment on a movie rental. And hence, began his journey of finding a solution to the problem of late fee payments. He launched Netflix in 1998 as the first online store to rent DVDs, which offered endless movies viewership by paying monthly rentals and no late fee charges. It was one of a kind service, backed by Reed’s motto of providing excellent customer service. Driven by innovations, it was directed towards the vision of providing joy to everyone. Reed believed that the more joy they create, the more it will earn and hence, will be able to create even more happiness. By 2007, Netflix had started offering online streaming services to customers since Reed believed that Internet television was the future of viewership.
Reed has been credited as being one of the rare entrepreneurs and industry leaders for issuing a public apology, twice in 5-6 months when due to hasty decisions and abrupt price increase, Netflix’s stocks plummeted to one-third of original. As Netflix faced its share of ups and downs, he stood out as authentic and true to his mission. His goal has always been to remain focused and not give in to the chaos. In an interview, he mentioned that when attacked, we should retreat to core better and not broaden the surface of attack. This particular strategy has helped them sail the rough waters.
A noted philanthropist, Hastings also dedicates a part of his time to educational issues. He was the President of California State University from 2002-04 and recently created a $100 million fund, towards education-related activities, particularly for Black and Hispanic communities.
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