Netflixed: The Epic Battle for America's Eyeballs

Netflixed: The Epic Battle for America's Eyeballs by Gina Keating

Netflix was founded by Marc Randolph and Reed Hastings in the late 1990s. They had worked at a software company together that was acquired by IBM. Randolph was the primary force behind the initial idea and wanted to do something Amazon with video. Netflix was somewhat lucky that the potential competitors like Amazon and Blockbuster were inept, allowing Netflix to grow. An "activist investor" was busy trying to pull money out of Blockbuster preventing them from putting enough money into the DVD delivery operation to compete with Netflix. Blockbuster also had to struggle with the possibility of cannibalizing their existing store's revenue model - including the reliance on late fees. Netflix had optimized fast delivery of DVDs through the mail system to locations where their customers were. This seemed simple, but was difficult for others to copy. This book was written more than a decade ago, so only touches the surface of the pivot to streaming. Netflix did not do things perfectly, but was able to learn from mistakes and pivot to continue succeeding.