[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 ✅