How I Built a Billion-Dollar Company | Reed Hastings | Netflix

Before Netflix, Disney+, Hulu, Amazon Prime, and HBO Max, the only way you could watch any movie or shows at home was by going to your local rental store. Two guys wanted to change that and stream movies online but to make that happen, they had to start small with a little red envelope and think big becoming their own studio production. You watch Netflix every day but do you know the real story of how it was made?
It was 1997 and I was at my local Blockbuster returning my VHS movie rental, Apollo 13, when the guy told me that I had a $40 dollar late fee. I didn't want to pay it but I had no choice because I wouldn't be able to rent any other movies until I did and Blockbuster was the only rental store. I asked him to please let this one by since this was my first time but he only said "Sorry, store policy". So I paid for it and embarrassingly rushed out.
The entire ride home, I was annoyed and couldn't get that $40 late fee out of my head. I knew there had to be some other option, but there wasn't! So instead of putting up with their ridiculous fees, I created my own video rental store beating Blockbuster and creating Netflix, my billion dollar industry. But that's not really how Netflix was started; at least, not how the idea came to us.
I was working at my software company, Pure Atria, with a close friend, Marc Randolph, where we would carpool to Silicon Valley together every day when one day we began bouncing ideas off each other. We were looking for our next career move and hungry for something game changing that would revolutionize an industry and fit more with the 21st century. We knew about Amazon's rising popularity and we wanted to make an Amazon-like business that would be internet-based and toyed with dog food, shampoo, and then, renting movies. It was a crazy one but so were we and so was America's obsession for movies.
We sat on the idea and the more we spoke, the more we began getting discouraged almost abandoning it. But in 1997, my company went through a merger with a larger corporation and I sold Pure Atria for $750 million giving me the opportunity to finally try our idea. We began building our site and planning our business model to ship movies to people's homes until we realized we didn't have a cost-effective way to deliver them because, at the time, the only movies you could rent were on VHS which were big and heavy and people went to Blockbuster to pick them up. But then a friend told me about a new of watching movies; DVDs.
We weren't sure how strong or if a DVD would make it in one piece to the customer so we tested the idea ourselves by inserting a DVD movie into an envelope and mailing it to our homes. When we ripped opened the envelope and saw that it made it in one piece and still worked, we knew it had to be done. I invested $2.5 million of my own money into the start-up imagining it to be the next Amazon of movie rentals. In 1998, with everything in place, we launched the world's first online DVD rental store with just under 1,000 titles.
We were going with a single rental service, meaning, pay per movie at $4 each plus a $2 postage fee, unlimited due dates and of course, no late fees. It all seemed flawless but we had no idea if people would even use the online story because all households were still on slow dial-up internet and the majority didn't own DVD players. But, with a few early-adopters, and within a few years of advancing internet connection, we managed to scrape by.
In 1998, Jeff Bezos tried to buy us out and even though we were tempted, we knew if he wanted our company, then we were on to something big. So, we turned him down. A year later, we regretted that decision when our business began falling because the dot-com bubble burst scaring investors from all things tech. We had no choice but to approach our rival, Blockbuster, to propose an offer to buy us out for $50 million. The CEO stared at us dead in the eyes and then laughed straight into our faces saying 'it will never work'. Both of us would remembered that meeting for the rest of our lives.
Building debt and unsure if we'd survive, I went back to our office prepared to tell our team of 30 that there might be no Netflix. When I saw their faces and knew how much they believed in this vision and the trust they put in me, I made the decision that I wasn't going to give up and I wasn't going to stop trying. I made the decision to get rid of our single rental service and moved to a subscription model for one low monthly price. That idea not only saved us but gave us the popularity we needed.
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#successful #founder #blockbuster #netflix #billionaire
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[@malaysianmapping9767]

If it weren't for that 40 dollars late fee, we might not have Netflix

[@alomiee7472]

OMG true 🤣

[@poshpa738]

And then Netflix wouldn’t lose a shit load of money because of cuties

[@omotayosatuyi252]

Yeah thank goodness for that 40 dollar fee

[@d-me-a9579]

Or none of his family was born

[@Az3n0]

Maybe we’d haved notflix ;)

[@InfinityGaming420]

I said no to 15m dollars and became a billion are Me: *THE ULTIMATE PLOT TWIST*

[@SaturdayMorno86]

Blockbuster's CEO famous last words to the guy creating Netflix ”it will never work!”. Now 21 years later where is Blockbuster? Oh that's right! It no longer exists I guess VHS is don't work anymore

[@sspe3456]

And not to mention a lot of video stores were doomed anyway due to the technology changing over the years. Got to keep up what's going on today and the future in business otherwise your business will wind up closing and left in the dark.

[@elliothorne4576]

No it has one more store in a small town in Oregon

[@kamanashiskar9203]

@@elliothorne4576 Well, it is a regular small business now, not the Empire, on which the sun never sets, it used to be in the 1990s.

[@Whitneypyant]

@@sspe3456 now most of the consoles and laptops don’t have dvds slot. Laptops gotten ridden of those quick. My PlayStation has one but I rarely buy game disks. I normally get my games at the PlayStation store online and download them on my console

[@WisdomWealth77]

Our greatest weakness lies in giving up. To succeed we just have to try one more time. 💪

[@scoutslaw]

Wha-

[@Marta_Fanai]

Nice

[@theprimest]

If you're reading this you have potential to create great things, you were put on this planet for greatness. Yes. You.

[@hufflepuffhouse46]

𝕋𝕙𝕒𝕟𝕜 𝕪𝕠𝕦

[@sanikawarren4188]

Very inspired..... Once there's life there's hope .....self motivation

[@Lieutenant_Ghost]

This really is the owner of netflix for those saying or thinking it's fake

[@iamcringe.4343]

I can tell you're a winner.

[@thewerewolfgod74]

@@iamcringe.4343 *𝙇𝙊𝙎𝙀𝙍

[@jelly_midnight7882]

@@thewerewolfgod74 *didn’t ask for your opinion

[@igot7armytaekook308]

@@thewerewolfgod74 You really gonna ruin my morning already? Jerk😒

[@thewerewolfgod74]

@@igot7armytaekook308 JUST THE THING FOR THAT ♡GOOD MORNING♡ ⠀⠀⠀⠀⠀ ＿＿＿ ⠀⠀⠀⠀／　　　▲ ／￣⠀⠀ヽ⠀⠀⠀■■ ●⠀⠀⠀⠀⠀⠀⠀⠀■■■ ヽ＿＿＿⠀⠀⠀⠀■■ ⠀⠀⠀⠀⠀⠀）＝｜ ⠀⠀⠀⠀／　｜｜ ⠀⠀∩∩＿＿とﾉ ⠀⠀しし───┘

[@harmonetheanimationaddict4419]

Tv wouldn’t be where it is today without Netflix.

[@kamanashiskar9203]

Actually, television is slowly dying.

[@ashlee1267]

The monthly fee got me crying😭💀

[@alomiee7472]

Big things start small❤️

[@VixenVulpix266]

What no way, the CEO of Netflix

[@Ruiinaa]

@Olanrewaju Siwoku CEO and Owner,same thing.

[@liliththerat8124]

@Olanrewaju Siwoku In most companies they’re the owner

[@oh_omo7989]

@Olanrewaju Siwoku ceo is another way of referring to boss or owner

[@DollyNipples]

I remember Blockbuster. One time I returned my tapes like a good girl and such, and sometime later I was given this letter about a late fee. Turned out the guy at the register forgot to process the return properly. No matter though - they still charged me the late fee. For awhile we went elsewhere to rent videos, but that other rental place's selection just SUCKED! There was NOTHING GOOD. It just had boring, crappy movies. I doubt it had anything recent. Years later I started renting from Blockbuster again because despite the bad experience and crappy service, it was the only rental with good movies. They gave decent service that time, but I will NEVER forget how Blockbuster burned me and truthfully, they deserved what they got for all the people - including myself - who they screwed over. If they had waived that late fee and maybe fired that kid or given me some credit for a free rental as apology, I would have actually felt sorry for them. As it is, I'm glad Blockbuster is gone for good.

[@Joshlus]

To the person reading this: you’re gorgeous and don’t let anyone bring you down 👑❤️

[@poshpa738]

What if I do?

[@qhawengcobo2411]

Tnx✨❤

[@laylahoward9272]

@@poshpa738 oop

[@laylahoward9272]

I try🥺

[@DavidKen878]

It's kinda meaningless since you're not personally telling people this. It's just a random comment.

[@nickmoore1177]

I miss Blockbuster 😭😭😭😭😭😭😭

[@kamanashiskar9203]

The Sun has Set on the Empire on which the Sun never sets.

[@meeren123]

dude got charged 40 dollars and tore down their whole company as revenge

[@akeilanyokwoyo4955]

You don’t know how much I’m thankful for Netflix or else family Reunion wouldn’t be here

[@Thenotfamousjay]

Where’s blockbuster where is it no wait it died in when Netflix became popular

[@Whitneypyant]

There still one blockbuster in Bend Oregon

[@user123nrw9]

God protect him, cuz Netflix still has a lot of series to release. :,)

[@evouzermemet5120]

And that's how the movie, Death Note based on Netflix adaption, that everyone loves exists ❤❤😍😍🥰😁😊.

[@MarkSmithhhh]

Imagine that guy leaving blockbuster..."I'll show you!!!!!" Yeah sure buddy...

[@bishalkumar3864]

Never knew this before

[@ahmedmukhi7684]

Bruh Netflix destroyed Blockbuster just for $40 late fee.

[@scoutslaw]

Yeah and "I took a box from a Walmart and found mrbeast inside"

[@Whitneypyant]

I got Netflix and I never looked back. I can’t even remember what was my last dvd that I brought

[@surjyakiranpaul1895]

Really appreciate this biography types of videos, Thank you Minute Videos

[@aishalane2610]

It's crazy because before Netflix there was Redbox and you could buy movies on your tv in the 100s channel. I thought Redbox was the next best thing.

[@merlinfazbeartheinquisitor5747]

We thanks for the tribute of Netflix for sponsor this video possible.

[@iluvkimchiii]

This is amazing ❤️

[@briseidamendoza4869]

Right Netflix a good steaming site yet they're stupid and problematic many times

[@poshpa738]

A lot of times actually. Remove good movies and replace em with bad ones

[@angelic_writer]

Should we even be reminded of the fact that Netflix still has Cuties, even when that movie has sparked up TONS of controversies?

[@poshpa738]

@@angelic_writer I also hate how Norway paid for it as well smh 🤦🏽‍♀️

[@gachamadeline16stephens83]

No way, so you created Netflix?! Cool!

[@anthonyislas5414]

Congratulations. Your idea of Netflix killed the video store, putting millions of more out of a job. So I hope your happy.

[@kamanashiskar9203]

This is competition. But also now Netflix game millions work because those actresses in the Netflix movies are not robots.

[@Hi-ez8nm]

I was watching this when a Netflix ad pooped up

[@odalisparedes5643]

If Netflix never existed idk what will happen

[@nikhil.d7221]

I don't seem to understand how these types of videos don't blow up quite often.

[@chorcance3873]

I remember when I was small and watching Hello Kitty

[@battlelover666gaming2]

Honestly these videos are inspiring...

[@dr_trader2332]

May I plz have more videos about successful ppl such steve jobs, larry Ellison. Larr Page I really enjoy the style of how u make these videos

[@elineblokhuis908]

Wauw!! Nice story!

[@shazadaifallah4839]

More vids abt success plzzz ❤️❤️ they’re amazing ❤️❤️

[@nuvies.2234]

Origin storiess🥺❤️

[@yoursubconscious]

i enjoy it, though to have a job Silicon Valley and in software, it seems like a win win (at that time) edit: 2.5 million dollar start up out of his own pockets? Ya, inspiration out the door.

[@alimontaperto9856]

Quick question why did they get rid of mikey and the bean stock

[@kamanashiskar9203]

If only BlockBuster didn't want that late fee...

[@bellmaze107]

The story is interesting i hope minute video will produce more story like this.

[@parimanjunath1265]

Please upload childhood sweethearts pt3

[@kyliehall5807]

It's so funny because I'm watching Netflix right now

[@mayln163]

Hope to see more Origin Stories videos

[@itsmepugg4562]

I love Netflix

[@tadartaderkung7780]

Nice video bro

[@Dulcibella444]

Wow just wow!!

[@l7entertainment13]

Pourquoi sur la chaîne 1minutes video français ya plus de video?

[@dikshasvagarwal]

Would love to hear the story of KZbin!!!

[@katherineknapp6604]

I love NetFlix

[@stevesibaja3123]

Today's Netflix Inflation is nearly $20.00 Bucks a Month

[@arcious60]

Netflix is my life

[@Spencer7660]

Well sorry to say it but you need a life

[@smurf4624]

Apple

[@rohanguha10x]

Story on Warren Buffet plz

[@dr_trader2332]

May I also request a video about Mark zuckerberg

[@jokesuniverse8469]

I want Minute Video to make the story of Facebook and WhatsApp

[@AJRandom]

let's all take a moment to appreciate that 40 dollar late fee

[@bloodybriars9399]

Smart•••

[@Random_Stufffer]

btw sneaky shipper is first

[@victorguevara9947]

And chill

[@zbacon]

I had a hbo ad before this ...thz KZbin

[@stevesibaja3123]

This year in 2022 Netflix loses 200,000 Subcribers for the first time in 10 Years

[@gametimeSubscribe]

Lol guys I saw this first but didn't comment 😅😂

[@soniclight7745]

😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😍😁😁😁😁😁😁😁😁😁😁😃😃😃😃😃😃😎😎😎😎❤❤❤❤❤❤❤❤ Aubrey like watching Netflix uneven watch WWE stage

[@ChroniclesOfGreatness1]

PLEASE DO MARK ZUCKERBERG (FACEBOOK)

[@sugawarashand606]

Can you add more anime on Netflix?😃

[@antlerzy]

It should but “he” instead of “I” because we all know that the creator of Netflix didn’t go out of his way and voice act some story video

[@ExcellentEf]

He wrote the script though

[@luismedina5792]

It's a shame of what it has become now

[@arianapeterkin9529]

How the-

[@TheInFam0u5Drag0n]

Your channel name is very misleading

[@ChroniclesOfGreatness1]

Please mark Zuckerberg

[@DmakProductionsTempe]

You cover a lot of tough tips in the video production industry! We love what you talk about, don't stop. Anytime you're in Phoenix hit us up. If you want, message us @dmakproductions on IG and we can chat. We love what you do!

[@ChroniclesOfGreatness1]

Please Mark Zuckerberg

[@twistedbadboy3293]

Can you do mark Zuckerberg thnks☺

[@emokid-yj8uk]

No he's a Jackass

[@beemimoo3746]

Why arr there so many annoying inspirational quotes in this comment section?

[@ChroniclesOfGreatness1]

Mark Zuckerberg

[@ocnerd1871]

Remove cuties

[@Random_Stufffer]

Nobody cares who's first aaa

[@shionneimeris1213]

Too bad Cuties has yet to be removed from the platform.

[@Ciararat]

First time being early

[@savnockun5256]

🙃

[@gametimeSubscribe]

1

[@karlmarx8487]

You are first

[@thewerewolfgod74]

TUBU IS BETTER

[@korvix9536]

Yo what about cuties still being in your selection

[@KittyMcFlame]

No I am first

[@malaysianmapping9767]

You are wrong, I'm last

[@VixenVulpix266]

hey hey now it's not about first or second. It's about the support

[@KittyMcFlame]

@@VixenVulpix266 are you sure ?

[@iluvkimchiii]

@@VixenVulpix266 true, nobody cares who's first only this kids watching 🤦🏻‍♀️

[@maishamahjabinadrita8743]

1st

[@rattheplanelover]

First

[@KittyMcFlame]

No i am first

[@rattheplanelover]

Bruh I can see if I’m first, I clicked on comments but they weren’t showing so I know I’m first 😑