An Interview with Reed Hastings



"I think television will radically change. We'll move from this era of control -- where cable or satellite gives you 50-500 channels -- to an era of freedom where, from your television, you can get any Internet video from CNN.com, Fox.com, Europeansports.com, Playboy.com, YouTube.com, whatever. This opening-up of the content universe for Internet video is the big opportunity ahead." Businessman and Internet Visionary Reed Hastings of California, the founder of Netflix, served as a Peace Corps Volunteer in Swaziland.

An Interview with Reed Hastings

Dialogue: Reed Hastings

Whether by mail or Internet downloading, movie rentals have a bright future.

After founding Pure Software in 1991 and making a fortune selling the company to Rational Software six years later, Reed Hastings turned his attention to the video rental industry, figuring out how to use the Internet to eliminate late fees and even the minor hassle of driving to the neighborhood video store. Fast-forward to the present, and Hastings' second company, Netflix, boasts 5.2 million subscribers who mostly pay $17.95 a month for DVDs that come and go from their homes via the U.S. Postal Service. Hastings spoke recently with The Hollywood Reporter's Paul Bond about the future of movie rentals.

The Hollywood Reporter: Will Netflix put an end to the traditional business of bricks-and-mortar movie rental stores?

Reed Hastings: The success of online rental is definitely propping up the total rental

market, which has stayed steady. If not for the growth in online rental, Netflix in particular, video rental would be much smaller today. Netflix competes as much against premium cable networks like Starz and basic cable networks like FX as we do with video stores. It's a very broad market for movies in the home.

THR: Has Netflix influenced the movie business in other ways?

Hastings: Our fundamental contribution is personalized movie merchandising, which

creates demand for small movies that are otherwise hard to market. (It also) creates high consumer satisfaction because the movies are interesting to that particular consumer. For small movies, Netflix can often be the difference between creating a profit and not because we do generate significant demand.

THR: How will the public consume movies 10 years from now?

Hastings: I think television will radically change. We'll move from this era of control -- where cable or satellite gives you 50-500 channels -- to an era of freedom where, from your television, you can get any Internet video from CNN.com, Fox.com, Europeansports.com, Playboy.com, YouTube.com, whatever. This opening-up of the content universe for Internet video is the big opportunity ahead.

THR: Will theaters still be popular?

Hastings: Absolutely. Movie theaters have a very special place as an entertainment destination, and I don't see them going away -- ever.

THR: What happened to your joint efforts with TiVo to deliver movies digitally?

Hastings: There's not enough content available, and we canceled and postponed all our efforts two years ago. We're continuing to do research and development, and we'll talk about our strategy in January.

THR: I'll ask you what I asked Mel Karmazin, CEO of Sirius Satellite Radio: With so many media subscription services, is the consumer nearly tapped out?

Hastings: Consumers like great selection, value and convenience. If new services offer that, consumers have shown they're very willing to use those services.

THR: What are the most disruptive changes headed our way in terms of media distribution?

Hastings: Internet television and the ending of the channelized experience of the last 60 years.

THR: Will Netflix be a player there?

Hastings: Netflix has always focused on the Internet opportunity, and we intend to be a leader in movie delivery on the Internet as this change comes about. Other companies will be the leaders in other forms of entertainment, such as news, sports, serialized content, shorts, etc. Our focus is movies.

THR: How does the battle between HD-DVD and Blu-ray affect Netflix and consumers?

Hastings: We think Microsoft and Sony are both strong enough to create a stalemate, and the solution is for all studios to join Warner (Bros. Pictures) and Paramount as format-agnostic. Then the press will declare the war over, and consumers will start buying. Two formats is not a big problem for the industry -- for the last 10 years, we've supported VHS and DVD just fine.

When this story was posted in October 2006, this was on the front page of PCOL:




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Chris Dodd's Vision for the Peace Corps Senator Chris Dodd (RPCV Dominican Republic) spoke at the ceremony for this year's Shriver Award and elaborated on issues he raised at Ron Tschetter's hearings. Dodd plans to introduce legislation that may include: setting aside a portion of Peace Corps' budget as seed money for demonstration projects and third goal activities (after adjusting the annual budget upward to accommodate the added expense), more volunteer input into Peace Corps operations, removing medical, healthcare and tax impediments that discourage older volunteers, providing more transparency in the medical screening and appeals process, a more comprehensive health safety net for recently-returned volunteers, and authorizing volunteers to accept, under certain circumstances, private donations to support their development projects. He plans to circulate draft legislation for review to members of the Peace Corps community and welcomes RPCV comments.

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The Peace Corps Library The Peace Corps Library is now available online with over 40,000 index entries in 500 categories. Looking for a Returned Volunteer? Check our RPCV Directory or leave a message on our Bulletin Board. New: Sign up to receive our free Monthly Magazine by email, research the History of the Peace Corps, or sign up for a daily news summary of Peace Corps stories. FAQ: Visit our FAQ for more information about PCOL.

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He served with honor One year ago, Staff Sgt. Robert J. Paul (RPCV Kenya) carried on an ongoing dialog on this website on the military and the peace corps and his role as a member of a Civil Affairs Team in Iraq and Afghanistan. We have just received a report that Sargeant Paul has been killed by a car bomb in Kabul. Words cannot express our feeling of loss for this tremendous injury to the entire RPCV community. Most of us didn't know him personally but we knew him from his words. Our thoughts go out to his family and friends. He was one of ours and he served with honor.

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September 12, 2006: This Month's Top Stories John Coyne writes: The Lion in the Garden 12 Sep John McCain says: We passed up an opportunity after 911 12 Sep Jody Olsen speaks at Headquarters about 911 11 Sep Bill Moyers Returns to Investigative Reporting 8 Sep Boating Accident kills two PCVs in Mali 7 Sep Director Vasquez bids Farewell to Washington 7 Sep James Rupert writes: Pact reached with pro-Taliban forces 6 Sep Carol Bellamy to speak at Global Risk Conference 5 Sep New trial ordered for Jerry Mark in murder case 2 Sep Ken Hill to step down as NPCA Chairman 1 Sep Clintons, Gearans dine at resort 1 Sep 'Chris Matthews' Turns 5 31 Aug Taylor Hackford thinks Chuck Berry is a pain in the ass 31 Aug John Kefalas alleges dirty tactics in house race 30 Aug DRI receives Charity Navigator's highest ratings 29 Aug Kris Holloway writes "Monique and the Mango Rains'' 28 Aug Richard Celeste writes: Watch Out For Voting Day Bugs 28 Aug Donna Shalala boosted UM's image 27 Aug Leonard Robinson devoted his life to the underserved 24 Aug Phil Hardberger will run for re-election in 2007 24 Aug Snakes on the Plain - the black mamba 23 Aug Eunice Kennedy Shriver still going strong 20 Aug

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Meet Ron Tschetter - Our Next Director Read our story about Ron Tschetter's confirmation hearing before the Senate Foreign Relations Committee that was carried on C-Span. It was very different from the Vasquez hearings in 2001, very cut and dried with low attendance by the public. Among the highlights, Tschetter intends to make recruitment of baby boomers a priority, there are 20 countries under consideration for future programs, Senator Dodd intends to re-introduce his third goal Peace Corps legislation this session, Tschetter is a great admirer of Senator Coleman's quest for accountability, Dodd thinks management at PC may not put volunteers first, Dodd wants Tschetter to look into problems in medical selection, and Tschetter is not a blogger and knows little about the internet or guidelines for volunteer blogs. Read our recap of the hearings as well as Senator Coleman's statement and Tschetter's statement.

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Chris Shays Shifts to Favor an Iraq Timetable In a policy shift, RPCV Congressman Chris Shays, long a staunch advocate of the Bush administration's position in Iraq, is now proposing a timetable for a withdrawal of American troops. How Mr. Shays came to this change of heart is, he says, a matter of a newfound substantive belief that Iraqis need to be prodded into taking greater control of their own destiny under the country’s newly formed government. As Chairman of the House Government Reform subcommittee on national security, he plans to draft a timetable for a phased withdrawal and then push for its adoption. A conscientious objector during the Vietnam War who said that if drafted he would not serve, Chris Shays has made 14 trips to Iraq and was the first Congressman to enter the country after the war - against the wishes of the Department of Defense.

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Peace Corps' Screening and Medical Clearance The purpose of Peace Corps' screening and medical clearance process is to ensure safe accommodation for applicants and minimize undue risk exposure for volunteers to allow PCVS to complete their service without compromising their entry health status. To further these goals, PCOL has obtained a copy of the Peace Corps Screening Guidelines Manual through the Freedom of Information Act (FOIA) and has posted it in the "Peace Corps Library." Applicants and Medical Professionals (especially those who have already served as volunteers) are urged to review the guidelines and leave their comments and suggestions. Then read the story of one RPCV's journey through medical screening and his suggestions for changes to the process.

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The Peace Corps is "fashionable" again The LA Times says that "the Peace Corps is booming again and "It's hard to know exactly what's behind the resurgence." PCOL Comment: Since the founding of the Peace Corps 45 years ago, Americans have answered Kennedy's call: "Ask not what your country can do for you--ask what you can do for your country. My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man." Over 182,000 have served. Another 200,000 have applied and been unable to serve because of lack of Congressional funding. The Peace Corps has never gone out of fashion. It's Congress that hasn't been keeping pace.

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Support the US-Peruvian Trade Pact Peruvian President Alejandro Toledo, the Peace Corps President, has been lobbying both Democratic and Republican legislators to support the US-Peruvian trade pact before July 28, when his term ends and a US congressional recess begins. If President Bush fails to get approval before Congress goes on recess, it will be a case study proving that the United States does not reward its friends. Please call your representatives.

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PCOL readership increases 100% Monthly readership on "Peace Corps Online" has increased in the past twelve months to 350,000 visitors - over eleven thousand every day - a 100% increase since this time last year. Thanks again, RPCVs and Friends of the Peace Corps, for making PCOL your source of information for the Peace Corps community. And thanks for supporting the Peace Corps Library and History of the Peace Corps. Stay tuned, the best is yet to come.

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History of the Peace Corps PCOL is proud to announce that Phase One of the "History of the Peace Corps" is now available online. This installment includes over 5,000 pages of primary source documents from the archives of the Peace Corps including every issue of "Peace Corps News," "Peace Corps Times," "Peace Corps Volunteer," "Action Update," and every annual report of the Peace Corps to Congress since 1961. "Ask Not" is an ongoing project. Read how you can help.

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