Netflix CEO Reed Hastings’ Big Idea – How Netflix Got Started

One day in 1997, Reed Hastings found a missing Apollo 13 video that he’d rented from Blockbuster. He’d racked up $40 in late fees, which he paid when he dropped off the video on the way to the gym. While working out, he had the epiphany that would lead to the birth of Netflix. Inspired by the subscription model used by most gyms, he could design a video subscription service following the same principle. It could allow people to borrow as many videos as they wanted for one flat monthly fee. He tested the idea by mailing CDs to himself to see how they fared in the postal system. They arrived in great shape, and Hastings went forward with his plan.

The success of Netflix shows how inspiration from one field or discipline can catalyze groundbreaking change in another. This story demonstrates the vital importance of getting out of our own silos and exploring how ideas across disciplines can shape how we work. Never be afraid to question existing models and methods, so you can arrive at ingenuous new solutions with far-reaching impacts. By leveraging ideas from the fitness arena, Netflix became one of the world’s most successful businesses.