Reed Hastings transformed how the world consumes entertainment by co-founding Netflix, pioneering both DVD-by-mail and streaming video services. Born in 1960 in Boston, Massachusetts, Reed's path to revolutionizing home entertainment began with a $40 late fee for a VHS rental of "Apollo 13."
After earning a bachelor's degree in mathematics from Bowdoin College, Reed joined the Peace Corps, teaching high school mathematics in Swaziland (now Eswatini) for two years—an experience he credits with developing his leadership skills and global perspective. Upon returning to the United States, he earned a master's degree in computer science from Stanford University and began his career in software development.
In 1991, Reed founded his first company, Pure Software, which created tools for debugging software. The company grew rapidly, eventually going public before merging with Atria Software and being acquired by Rational Software. This experience taught Reed valuable lessons about managing fast-growing companies, though he later admitted feeling overwhelmed by the challenges of leading a large organization.
The idea for Netflix came in 1997 after Reed was charged a $40 late fee for returning "Apollo 13" well past its due date. This frustrating experience sparked a question: What if there was a movie rental service with no late fees? Along with co-founder Marc Randolph, Reed launched Netflix as a DVD-by-mail service with a revolutionary subscription model—customers could keep DVDs as long as they wanted with no late fees, receiving new discs when they returned the ones they had.
Netflix's early years were challenging. The company competed with Blockbuster, which had over 9,000 stores worldwide, compared to Netflix's zero physical locations. Reed offered to sell Netflix to Blockbuster for $50 million in 2000, but Blockbuster declined—a decision that would prove monumentally misguided as Netflix grew and Blockbuster eventually filed for bankruptcy in 2010.
Reed's most visionary move came in 2007 when Netflix introduced streaming video, allowing subscribers to watch content instantly on their computers. At the time, internet speeds were just becoming fast enough to support video streaming, and Reed positioned Netflix at the forefront of this technological shift. In 2013, Netflix took another bold step by creating original content, beginning with "House of Cards"—a move that transformed the company from a distribution platform into a production studio.
Throughout Netflix's growth, Reed implemented innovative management practices. He eliminated vacation tracking, believing employees should be treated as responsible adults. He also developed a unique corporate culture centered on "freedom and responsibility," detailed in a famous 125-page culture deck that has been viewed millions of times and influenced companies worldwide.
Under Reed's leadership, Netflix grew from a small DVD rental service to a global entertainment powerhouse with over 230 million subscribers in more than 190 countries. The company's success fundamentally changed not just how people watch TV and movies but how content is produced and distributed.
After serving as CEO for 25 years, Reed stepped down in January 2023, transitioning to the role of executive chairman. His legacy includes not just building a successful company but transforming an entire industry—from the extinction of video rental stores to the rise of binge-watching and the streaming wars that now dominate entertainment.
Reed Hastings' story demonstrates how a simple frustration—a late fee—can inspire an idea that ultimately revolutionizes how millions of people around the world experience entertainment.