Netflix wanted to test the idea with potential investors. Hastings wanted “other people’s money,” too, so they’d have skin in the game. Randolph felt comfortable with this because he only risked his time he had three young children at home to take care of. They created six million shares of the company, which they split in thirds. Randolph and Hastings agreed that their idea was worth $3 million. The truth is that the author likes headaches he enjoys having problems every day with which he can deal. Building a website required six months and several engineers. In mid-1997, only 125 movies were available on DVD. They mailed a CD in a cardboard envelope to Hastings, who received it undamaged. The author tells us how he and Hastings tested an idea to rent movies by mail. Discs cost less than videotapes and were light enough to mail. In 1997, the US market for DVDs started to expand. He also admired Jeff Bezos’ success in selling books on Amazon and considered videotapes as well, but they were expensive at the time. He thought about selling books, but the cost of shipping was prohibitive. Hastings wanted to create something that would encourage repeat business. Together they were able to help Randolph pitch ideas for new companies that would sell through the internet instead of in stores. Christina Kish helped manage projects for them while Te Smith handled press releases and public relations.

Randolph had experience starting a new company with two other employees who moved with him from New York City, so he wanted to keep his team together. Hastings was studying education in college and wanted to change the world. Randolph knew the future of Netflix involved internet sales, but he didn’t know how to go about it. They had no money and would soon be out of jobs, but with some investment capital from their former employer, they could pursue this new idea.

Most of his ideas were bad, but he did have one good idea: that they should start a company together. Marc Randolph recalls the ideas he pitched to Reed Hastings as they drove to work. 1-Page Summary of That Will Never Work Getting to a good idea takes hard work and systematic vetting.

That will never work marc randolph pdf