I think you're missing my point. Netflix taking out BlockBuster does not prove they can do no wrong, merely that Reed Hastings a perfectly capable CEO, and smarter than the media would have you believe.
If you read about the history of the company, they started by SELLING DVD's. They barely made any money renting them. But, Reed Hastings made the decision to split that company because it wasn't the future. His 10,000 customers complained but he stuck to his guns. And look at them now. The largest streaming company in the world.
He was placed in the same situation this past year. Stick to a business model with no future (DVD's-a dying medium), or split the company to improve negotiating terms for streaming deals(the future) and hopefully sell off "Quickster." It was a brilliant plan that poised Netflix for the next generation of digital distribution.
Instead they backed down and changed direction, looking weak in the process.
Netflix was not originally an internet streaming company, that came later. I'm not sure I could call Netflix a "perfect communication of what the company does", given the name came around when the internet was only used to select your next mail-received movie.
From what I've read his goal was always to start a streaming movie company. He just did the DVDs by mail thing while he waited for technology to catch up.
If you read about the history of the company, they started by SELLING DVD's. They barely made any money renting them. But, Reed Hastings made the decision to split that company because it wasn't the future. His 10,000 customers complained but he stuck to his guns. And look at them now. The largest streaming company in the world.
He was placed in the same situation this past year. Stick to a business model with no future (DVD's-a dying medium), or split the company to improve negotiating terms for streaming deals(the future) and hopefully sell off "Quickster." It was a brilliant plan that poised Netflix for the next generation of digital distribution.
Instead they backed down and changed direction, looking weak in the process.