Director General of the Internet company Netflix Reed Hastings told the magazine Fortune, as it had the idea to organize the DVD-by-mail service, which now has 8 million customers.In the course of this story, Hastings mentioned 4 main business secrets, which determined its success.
How to come to the idea?
Reed Hastings: «Netflix was born in 1997, when I received a payment of $ 40 for the film Apollo 13. I remember it, because then I was not sure in the project.These were times VHS, and I have not thought that the system "movie on the disc - mail" there is a huge market.
received the first payment, I began to reflect on the idea of how to create a movie rental company, sent out by mail.
I did not yet know the details of the DVD, with the format introduced me to a friend who claimed that the time will soon come drives.I sent myself DVD-ROM by mail.It took 24 long hours, until the letter has not come back to my home, and I have not opened it.It was a great moment of joy for me. "
Perhaps it was then due to such testing Reed Hastings realized that it is possible to securely send the discs in the mail without worrying that they may be damaged.
What is Netflix?
Today, Netflix is a fairly large company.Its annual revenues exceed a billion dollars.The main activity of Netflix - Rent DVD, provided by mail.Rental process looks quite interesting.The man is a list of films that he would like to see this month.At the same time he must make allowances for how many movies a month, he can get all of their subscription.The most popular ticket worth 16.99 dollars, while the cheapest cost only 4.99, but the subscriber will only be entitled to 2 DVD per month.Get all the drives at once is impossible.For the next DVD you want to send the mail back to the previous.
Today Reed Hastings now cooperating huge number of studios, among which the most famous American giants: NBC Universal, MGM, 20th Century Fox, CBS / Paramount, ABC-Disney, Warner Brothers, Lions Gate Entertainment and New Line Cinema.This recently appeared in Netflix Blu-Ray discs, which brought into the project a full HD-content.It is also worth noting that the company has and its resources on the Internet, allows you to rent content directly to digital form (this is the future).
4 Success Secrets from the mouth of Reed Hastings
Choose a specific niche: When something hurts, try to be aspirin, not vitamins.Aspirin solves someone's very specific problem, whereas vitamins - it's just nice, but nothing more.
Be flexible: We named the company Netflix, and not «DVD in the mail," because it already knew that sooner or later the rent goes to the Internet.DVD-drives are popular for a long time, but the day will come when it will take place.
Never underestimate the competition: We mistakenly believed that the company Blockbuster will not enter into a confrontation with us.We thought that they did not spend a lot of money, but they put us in the fight against more than 500 million.
There is no shortcut: sometimes more wealth is created in a short time.In these situations, there is a lot of luck.Do you still think about the creation of the organization and a lot of work.It may not turn into big money.
Istchonik Photo: gizmodo.com
Articles Source: biztimes.ru
