Netflix's first CEO details the ruthless decision-making and 'relentless focus' that could help the company win the future of TV

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Netflix's cofounder and first CEO, Marc Randolph, told Business Insider how hard it was to find the right business model as a video-rental service.

Current Netflix CEO Reed Hastings, who cofounder Marc Randolph said has never been afraid to sacrifice the present for the future.simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

That"relentless focus" could be Netflix's edge over its streaming competitors, said Randolph, adding that he is no longer part of the business. He told Business Insider that people wrongly assume Netflix had a master plan that led it to streaming from the get-go. But it took Netflix more than two years — and a big pivot — to land on the subscription model that would ultimately help it grow into a business with nearly $16 billion in annual revenue.

Buyers came to Netflix for the convenience of mail delivery, but also to find titles they couldn't get at their local video stores.Netflix's cofounder describes the company's 'unbelievably ridiculous' early pitches and why they worked Soon, Hastings and Randolph were planning a"soft exit" from selling DVDs. The company continued selling previously rented DVDs until 2008. But, with Amazon starting to sell DVDs, Hastings struck a deal to send shoppers to Amazon to new buy DVDs, if Amazon would direct renters to Netflix.Even after abandoning sales, Netflix had a hard time persuading people to rent DVDs á la carte and wait 48 hours to receive the movies by mail.

 

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