Story posted January 27, 2009
Netflix, the DVD rental service founded by Reed Hastings '83, is one company that seems to be doing well amid the struggling economy.
Buoyed by the appeal of its relatively inexpensive DVD rentals, the company's fourth-quarter profit climbed 45 percent, surpassing analysts' estimates.
Hastings was profiled on the Sunday, December 10, 2006, episode of the CBS program 60 Minutes.
Netflix, based in Los Gatos, Calif., added 718,000 customers in the final three months of 2008, more than doubling the growth envisioned by management.
Netflix believes the weakening economy is still working in its favor.
Management predicted it will attract 700,000 to 900,000 more subscribers during the current quarter, yielding earnings ranging from 25 cents to 33 cents per share on revenue of $387 million to $393 million.
Hastings founded Netflix in 1997 after being forced to pay $40 in late fees for a video he had rented.
Hastings graduated cum laude with a degree in mathematics.
After spending two years in the Peace Corps teaching high school math in Swaziland, he enrolled in Stanford University's master's program in computer science, earning his M.S. degree in 1988.