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Reed Hastings Becomes a Billionaire Because Starting a DVD Rental Business

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Reed Hastings Now Becomes a Billionaire Because of Netflix

Who doesn't know the Netflix streaming platform? Company based in California, United States was founded by a man named Reed Hastings who is now included in the ranks of the richest people in the world.

The popularity of Netflix over the past few years is undeniably indulging in movie lovers all over the world. TV series and small movie titles are often presented to customers who subscribe every month.

Especially since the Covid-19 pandemic broke out in early 2020, community mobility has been limited and not being able to watch the latest films in theaters is one of the reasons why Netflix has now been watched by more than 180 million people worldwide. A fantastic amount, right?

One of the figures who benefited the most was Reed Hastings, who played the role of founder and CEO of Netflix. Let us refer directly to the following story :

Reed Hastings is the founder of Netflix who has an educational background in Computer Science. 

The man who was born on October 8, 1960 in the United States spent his undergraduate study at Bowdoin University, United States majoring in Mathematics.

Not stopping there, he then proceeded to master level by majoring in Computer Science at one of the world's leading campuses, Stanford University. Reed Hastings won a Masters in 1988.

FYI, Hastings turned out to have a fairly high social life because before deciding to take the Masters degree, he had participated in the Peace Corp program organized by the United States government. 

Peace Corp is a socioeconomic program to improve people's welfare. Some of the socialized fields are in the fields of entrepreneurship, agriculture, health, education to technology.

Decided to stop working and start a private company.

After earning a Masters degree at Stanford University, Reed Hastings worked for several years at a technology company called Adaptive Technology. 

After gaining enough experience in the technology and software industry, Hastings decided to resign and try to establish his first company, Pure Software, which has the purpose of detecting problems with a piece of software.

However, due to managerial problems that were quite complex and could not be handled by him, forced his position as top management was shifted and in 1995 the company was taken over by the public status of the intervention of investment company Morgan Stanley.

The selling price of Pure Software alone is estimated at around US $ 750 million.

Reed Hastings and His Co-Workers Founded Netflix in 1997

Despite failing to bring Pure Software to a better level with him, he was not discouraged and decided to establish Netflix with his office colleague, Marc Randolph.

In the beginning, the business strategy adopted by Netflix with what we know today is very much different. 

Netflix offers DVD cassette rental services to customers using email. 

In addition, Netflix also provides a website so that customers can see the collection of products that are prepared directly.

However, due to the limitations of computer and internet technology, Netflix is still rarely known by people and its prominence has not increased significantly or dropped dramatically.

It was only in 2007, Hastings completes its business platform by implementing an online streaming movie or TV series as we know it today. This is also inseparable from the success of Youtube hit the world internet market at that time where it could be said that the new online video streaming market explored its potential.

Sure enough, slowly but surely the popularity of Netflix began to increase in the United States a few years later. Netflix's popularity began to skyrocket in 2016 where the company already operates in 190 countries in the world.

How much profit does Netflix get?

With a number of users of more than 180 million people around the world, it is not strange if Netflix manages to reap profits of US $ 20 billion per year.

One reason why Netflix can benefit that much apart from the user side is that online streaming businesses require relatively little Human Resources. So in every country where Netflix operates there is no need to recruit a lot of employees, because its main business is internet-based and if there are technical problems it can be overcome within the regional scope only.

That could also be the reason why many startups today rely more on technological sophistication in addressing social problems that exist in society.

Now, Reed Hastings is included in the Forbes list of the 500 richest people in the world

The results of hard work carried out by Reed Hastings finally sweet fruit because Forbes put his name on the list of the 500 Richest People in the World in 2020 by being in position 494. His wealth has now reached US $ 5.2 billion.

That's the success story of Reed Hastings who successfully founded the Netflix online streaming platform. Are you one of the customers who use the application?

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