[G6]Reed Hastings, Netflix: Stanford GSB 2014 Entrepreneurial Company of the Year
Ideas
Rental &DVD
Mailing
Web interface
a subscriber base
Challenges in different stages
In 1997,
In 2002,
Getting the profitability
Stop consuming cash
Internet is faster enough
Not be dependent on the post office
It took five years to break even
Went public in 2002
2004-2007 Battles with Blockbuster
video store economics
went bankrupt
15-20 times bigger
In 2007,
YouTube was born
Streaming started actively
A small scale
Launched first streaming product in 2007
Got the Starz deal, Xbox deal to get on the TV in 2008
In 2010,
Expanded internationally with streaming
Without dealing with post
the expansion into new and original content
Future challenges,
More global
More into original content.
How to convince the original on the first studio deals
1.streaming was going to be okay
2.right would be protected
3.there's an economic model
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1.minimum guarantees to them 2.built their own pay-per-view 3.raising price to against HBO so that artist do better
Distribution to Content
Own Content
High Success Rate 🔥
Brand Equity
Dealing with flops
Demand Creation platform
No cancelled series ❎
Wrap up nicely ✅