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Video Interview with Netflix CEO Reed Hastings


Monday, May 17, 2010, 09:51 AM ET
posted by: Will Richmond
Last week when I was in CA for the Cable Show, I did a side-trip to Los Gatos to meet with and interview Netflix CEO Reed Hastings at the company's headquarters. We met up in the "Green Acres" conference room, one of the building's many meeting spaces named for popular TV shoes and movies. As I've written over the past several months, Netflix is on a huge roll, having grown its subscriber base 25% in just the last 2 quarters from 11.1 million subs at the end of Q3 '09 to almost 14 million subs at the end of Q1 '01.

Watch the interviews to learn more about topics like what Reed thinks is really driving Netflix's rapid growth, what Netflix pays to stream a movie online vs. deliver a DVD, whether streaming will remain unlimited, why Reed thinks TV Everywhere is "frustratingly brilliant," who the real competition is, what's on Netflix's streaming product roadmap, why sports are so important to cable, how net neutrality will be resolved and importantly, why Netflix's message to Hollywood is "our checkbook is open."

Reminder: Netflix's Chief Content Officer Ted Sarandos will be on the VideoSchmooze breakfast panel on Tuesday, June 15th at the SLS Hotel in Beverly Hills. Click here to learn more and save with the early bird discount.

Part 1 (9 minutes, 27 seconds):


Part 2: (9 minutes, 20 seconds):


What do you think? Post a comment now (no sign-in required).

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6 Comments posted


Dan
Monday, May 17, 2010, 11:26 ET
Great Interview! I have been a member of netflix since the start. Have always wanted to work for them as I saw that Reed had a vision for the future..

Mark Surfas
Monday, May 17, 2010, 01:07 ET
Thoughtful and intelligent. He's the real deal.

What video equipment are you shooting with? Any lighting?

Monday, May 17, 2010, 06:51 ET
Will, perhaps the key point that I will take away from Mr. Hastings' response to your questions is that he knows that he will -- slowly but surely -- attract more and more customers away from the legacy video entertainment distributors.

Just as we can look back today at the airline industry and wonder "how did TWA and PanAM fail to anticipate the final chapter of their fate?", we'll be wondering the same thing about the traditional pay-TV incumbents in a couple of years.

Monday, May 17, 2010, 11:06 ET
@Mark - I shot it with my Flip Mino HD. No extra lighting beyond what the windows and overhead lights provided.

@David - that's an interesting read on the interview. I thought he pretty much said he doesn't think Netflix will lead to cord-cutting, a point he's made elsewhere...what do you think?

Tuesday, May 18, 2010, 10:48 ET
Will,

Great interview, you hit on all the key points. Mr. Hastings is cerebral and has a good grasp of where the industry is heading, and how he plans to ensure Netflix remains at the top.

Tuesday, May 18, 2010, 01:34 ET
Will, if I were Mr. Hastings, then I would characterize the rise of Netflix the same way, and play down the apparent long-term threat.

That said, the Netflix service may be a "supplemental offering" for some consumers. However, for others (myself included) it changes TV viewing behavior and results in a downgrading of pay-TV service (from the premium service tier to the basic-cable tier).

My point: there are more granular steps to this business model disruption -- cord-cutting is merely the final stage in the process of the transition to low-cost on-demand entertainment adoption. Once you start down this path, the traditional pay-TV offering seems very expensive.



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