Netflix was the first DVD subscription service, upsetting the multi-billion dollar rental business that was owned by Blockbuster Video. Reed Hastings talks about how he identified this market opportunity and grew it into a multi-million dollar business.
Interview conducted by Nathan C. Kaiser on Friday, February 1, 2002 in Los Gatos, CA.
We offer an entertainment subscription service to consumers for $20 per month. This service allows for our customers to rent as many DVDs per month as they want. There are no associated late fees or due dates.
Exactly. On the other hand it is quite hard for a competitor to replicate this model, and it is a very unique proposition.