Reed Hastings: Founder of Netflix
For those outside America — Netflix is an on-line movie rental company that has become very popular in the last few years. Why is it popular? because it’s convenient to use and they apply no late fee’s on any of their DVD’s. You simply sign up for the service on-line, order your DVD’s on-line, they put them in the mail for you and you receive them at your home within a couple of days. When you are done watching them, you just put them back in a self-addressed, stamped envelope that the company provides and drop it in the mail.
NB: He has some interesting things to say about satellite (basically, it’s not efficient and will not cut it in the long-run). Kenya needs to hurry up with that fiber optic cable line (is the government underestimating it’s importance?)
The interview was given in 2005, which is a long time in the technology world, but the general themes discussed are still applicable. My reading of the interviews is that it’s all about creating niches and giving consumers multiple choices.
Small story. So A body of mine lived in the US for like 15 years. Went back home to visit and rented a video. After being totally disgusted at the quality (remember those videos where poeple are laughing in the copy) he came back, sold everything and moved back to open a rental store. That was like 5 years ago.
Along with quality he also opened a website where customers could pick the movie and he would drop the selected movies at the customers office in nai. This we before I even heard of netflix. I mean, that one I have to say is inovation in Kenya.
Well needless to say, he is now a movie wholesaler (yup selss to other rental stores). He used to take trips to NY every 6 months to get new movies, but now goes to China directly… and he does not even speak the language!
Anyway… just wanted to pass along a Netfix-ala-Nairobi story.
“Money is the side effect of a good business” That is my new motto.
Don:
I think I know who you are referring to. Do you have the domain name of his website? I have to check it out.
Now, what’s he going to do when movies start getting streamlined over the internet and when kenya finally gets it’s fiber optic cable? hmmmm
This also raises another interesting point about America – if you can’t do it in America because it’s too competitive or it’s too expensive or your a foreigner and would have a hard time raising money, etc, etc,….you should think of doing it in Kenya and expanding it to East Africa (they’re like 100 million people between those two countries)
Now you are talking. The guy had to stop the site due to the lack of a proper payment system…. before m-pesa.
With that business basically up and running he has diverted his attention to a new shoe store… yup goes to China and brings them in. He emails his clientele before he leaves and sells like 90% of his merchendise within 2 weeks of getting back. next time I see him I will suggest that he creates a catalog… this should streamline his business even further.
The fiber cable, that will be good for business. Maybe in 10 years the regular mwanainci will feal it’s presence. First you need to bring in the
How much do you think this guy is making a year (in dollar terms)
There is no way to know that unless you peek at the financials. But his darling is the wholesale business.
But if you know the guy, then you know that he can sell ice cream to an Eskimo so I am yet to see how the shoe store goes
I would loooooove to have a peak at those financials. I mean, isn’t that the marker? how much NET profit you are bringing in at the end of the day.