Netflix opens regional warehouses, bringing overnight delivery in response to subscriber complaints that it took too long to get their DVDs.Ģ012: Netflix starts making original shows. Reed has 500,000 shares, and Marc has 166,000 shares. The IPO raises $82.1 million and values Netflix at $309.7 million. During the meeting, John turns him down and laughs at Reed and the Netflix team.Ģ001: Netflix hits one million subscribers and continues to grow.Ģ002: Netflix goes public in May. After a meeting between Marc and Sony goes bad and growth becomes sluggish, Reed demotes Marc to President and takes over as CEO.Ģ000: Reed Hastings approaches former Blockbuster CEO John Antioco and asks him to buy Netflix for $50 million. Netflix's video library expands to 3,100 titles. At the end of the first day, they booked 137 orders.ġ999: A total of 239,000 subscribers sign up. Within 15 minutes, the website crashes as other orders start coming in, forcing them to run to the store to buy more servers. Marc orders the movie Casino as a test, and it works. The video library has approximately 900 titles. Hastings became Chairman with 70% ownership, and Marc Randolph, the CEO and a minority owner.Īpril 14, 1998: The website launches as Netflix at 9 am. On August 29, 1997, Netflix was registered and set up using at least $1.9 million from Reed Hastings, and other investors later supplemented this capital. When the CD arrived intact, they knew they had found their ticket to e-commerce glory. On a hot summer in 1997, Marc and Reed walked into Logos Books & Records in Santa Cruz, bought a CD of Patsy Cline's greatest hits, and mailed it to Reed's house a few blocks across the town. He realized DVDs would soon replace VHS Cassettes, and after a bit of brainstorming in the car on Highway 17, Reed was sold on the idea. Then, Marc heard of a hot new product invented in Japan called the DVD. To all of them, Reed's reply was simply, "that will never work." As they carpooled to work every day from their homes in Santa Cruz to Silicon Valley, Marc, who wanted to start something like Amazon, pitched all sorts of e-commerce ideas to Reed: surfboards, custom-built baseball bats, personalized dog food, and home-delivery shampoo.
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