Reed Hastings went from the marines to a math teacher, to building a $300 billion company from scratch.
What many don’t know, is Hastings wasn’t new to the business world when he started the streaming giant. In 1991, he founded Pure Software, a debugging tool for software developers that was acquired in 1997 for $750 million. By 1998, Hastings was using the money to create solution to late fees he racked up after returning Apollo 13 to the movie store 2 days late. Netflix was born. Originally, customers bought subscriptions and could order DVDs through the internet to their doorstep. With no late fees. As they grew to nearly half a million subscribers by 2001, Netflix turned down acquisition offers including $15 million by Amazon 2 months after launching and $50 million from Blockbuster in 2000. They delivered their billionth dvd in 2007 and launched their online streaming service the same year. Hastings led the company as CEO to top a $300 billion market cap in 2021 with over 230 million subscribers before stepping down last week.
Reed Hastings is a tech entrepreneur and co-founder of Netflix, changing the way people consume media. His journey in the business world is marked by innovation, persistence, and adaptability. What many don’t know, is Hastings wasn’t new to the business world when he started the streaming giant. This is the story of Reed Hastings, his life before Netflix, and how he went from the marines to a math teacher, to building a $300 billion company from scratch.
What Did Reed Hastings do Before Netflix?
Reed Hastings was born on October 8, 1960, in Boston, Massachusetts. He attended Bowdoin College, where he majored in mathematics. After graduation, he joined the Peace Corps and taught math in Swaziland. This experience instilled in him a passion for education and an understanding of the power of technology in delivering educational content.
In 1991, Hastings founded his first company, Pure Software, a debugging and troubleshooting software company. It was eventually acquired in 1997 for a whopping $750 million. This marked Hastings' first success as a tech entrepreneur and provided him with the financial means to explore new ventures.
How Netflix Started
In 1997, Hastings co-founded Netflix alongside Marc Randolph. The idea for Netflix originated when Hastings incurred a $40 late fee for a rented movie, leading him to ponder the concept of a rental service with no late fees. This experience was the genesis of a groundbreaking business model.
Netflix initially started as a DVD-by-mail rental service, revolutionizing the video rental industry. Subscribers could rent DVDs online and have them delivered to their homes, without incurring any late fees. This innovation disrupted traditional video rental stores and laid the foundation for the streaming giant we know today. As they grew to nearly half a million subscribers by 2001, Netflix turned down acquisition offers including $15 million by Amazon 2 months after launching and $50 million from Blockbuster in 2000. They delivered their billionth dvd in 2007 and launched their online streaming service the same year. This shift marked a turning point in the entertainment industry, making it convenient for users to watch content on demand. Hastings recognized the potential of streaming technology early on, and Netflix became a global phenomenon, reaching millions of subscribers worldwide.
Stepping Down as Co-CEO
Reed Hastings served as the Co-CEO of Netflix for many years, guiding the company through rapid growth and numerous challenges. However, in January 2023, Hastings announced a significant leadership change. Reed Hastings officially stepped down as Netflix' co-CEO and has passed over his duties to co-CEO Ted Sarandos and COO Greg Peters.
Under Hastings' leadership, Netflix's global reach and influence in the entertainment industry have been profound. His journey from a math major to a tech entrepreneur and innovator showcases the power of vision, adaptability, and persistence in shaping the future of technology and media. Reed Hastings' impact on the way we watch and consume entertainment is undeniable, and his legacy in both business and philanthropy continues to evolve.