Netflix: outside the box : GRAB THE MARKET FIRST, WORRY ABOUT PROFITS LATER

1. 1999: Hastings hired Ted Sarandos who is an expert in content

2. 2000: Hastings hired Neil Hunt who has developed the website and trackers to know more the customers likes and dislikes.

3. 2002: Nexflix became profitable and went public renting dvd's with 300,000 subscribers working with the US postal service for delivery and a monthly fee ($20) for unlimited movies one at a time.

3.1. ALLIANCE PROPOSAL TO BLOCKBUSTER WAS TURNED DOWN (Hastings offered 49%stake!!!

4. 2005: NETFLIX 4.2 million subscribers and increasing. Hollywood began offering movies giving them a leverage against BLOCKBUSTER.

5. 2007-2009: 7.5 million to 12 million subscribers!

6. 2011: AMAZON streaming video service. $79 per year plus 2-day free shipping service! Most people paid for the shipping service more than the streaming, though.

6.1. NETFLIX now with 20 million subscribers, known as rerun TV. No current seasons or new releases, though. HULU offered that!

7. INTERESTING FACTS: the way NETFLIX tracts people's preferances, how quickly they watch episodes or movies and how many episodes they watch on a row.

7.1. in 2014 NETFLIX main competitors were SHOWTIME and HBO

7.2. the well-known ''coach potatoes'' have turned into ''ACTIVE HUNTERS''

7.3. RETRANSMISSION CONSENT was born in 1992

7.4. Unfortunately NETFLIX can't offer appointment viewing: The oscars, the olympics, etc.

7.5. NETFLIX pioneer on having kid's content

7.6. This is the golden age of scripted drama. why?

8. WHAT ABOUT CABLE TV? : HBO, ESPN, CNN, NICKELODEON ask for montly fees. They should change to do businees with bandwith instead which will be more on demand in the years to come.

9. 1997: Hastings (36) cofounded Nexflix with Marc Randolph

10. 1991: Hastings launched ''PURE SOFTWARE'' (identifying bugs in the system)

11. 2004: BLOCKBUSTER got around to offering online subscription. TOO LATE!!

12. 2007: NETFLIX began streaming movies and TV shows directly to computers. All about won the rental war.

12.1. NBC and FOX joined to fight against NETFLIX

13. 2008: NETFLIX made deal with STARZ channel to stream movies paying them 30 million dollars annualy.

13.1. 2009: ABC created HULU website to watch current and past TV shows with 5 million subscribers paying $8 per month.

14. 2013: (noviembre) BLOCKBUSTER announced that it was going out of business. NETFLIX had 31 million subscribers in the USA, 3 million more than HBO. Stock was all-time high.

14.1. NETFLIX launched original programming series: HOUSE OF CARDS. 30% down streaming during peak hours nearly twice that of YOUTUBE.

14.2. HULU started original programming

15. WHAT ABOUT TV? : affected by ''viewer's managed dissatisfaction'' with 20 minutes of commercials

15.1. TV has third of the audience back then in late 70's.

15.2. Channels charge cable companies carrying their contents.

15.3. Three enemies: COMMERCIALS, HOW EASY IS STREAMING CONNECTION, AEREO COMPANY

15.4. Advertisers need mass audience to introduce products ( live TV and sports can help on this)

15.5. Nowadays networks income is less dependant on commercials. they get more money from overseas sales, licensing deals with cable and digital platforms. For example: NETFLIX pays CBS and FOX 250 million dollars each to let it air programs from archives.

16. WHAT ABOUT YOUTUBE? : It has more than 1 billion visitors watching more than 6 billion hours of video every month.

16.1. FRICTIONLESS ADVERTISING is a key for its success

16.1.1. YOUTUBERS!