The Brain Behind Netflix

Lesley Stahl Profiles Company Founder Reed Hastings

(CBS) 
Hastings' first job was as a math teacher in Swaziland for the Peace Corps. After graduate school, he started his first company, called Pure Software.

"You said that you were not a good CEO and you needed to turn that over to somebody else," Stahl remarks,

"I definitely struggled as CEO," he acknowledges. "Now, we became one of the 50 largest software companies on the planet, but I definitely struggled. And then it was acquired."

The company was bought for a pile of money, reportedly three quarters of a billion dollars.

"And that gave me the money to be able to start Netflix with," Hastings explains.

Netflix earned $688 million in revenues last year.

The Web site features a user-generated ratings feature, which is part of their recommendation system. If you were to rent "On The Waterfront" and give it five stars, Netflix software will search for what other "On The Waterfront" renters have rated highly, figure out from other movies you’ve rated whether it’s Brando you like, films in black and white or mob flicks.

This system recommends other movie choices to the user. Hastings thinks the recommendations have transformed the movie business by giving new life to thousands of forgotten or overlooked films, like "Hotel Rwanda."

"Did very little theatrical business. But our members like it a lot. They rated it very highly. So our Web site promotes it to more and more people and now 'Hotel Rwanda’s' the number five all-time rented film at Netflix, which is above 'Wedding Crashers,' which is a great mainstream film," Hastings explains.

For customers Bob and Bobbi Henkel, it’s those art house movies – the back-catalogue films that sold them on Netflix.

The couple doesn't share the same taste in movies, though. Bob likes action films, while Bobbi likes stories "that have depth, character." They get about five DVDs every week.

"Your problem with Netflix is Bob?" Stahl asks Bobbi.

"Yes, yes totally!" she replies.

Well, not totally. They live in northern Maine and their DVDs never get here the next day. And when they’ve tried to complain, they've had a difficult time locating a customer service phone number.

Stahl asked Hastings what customers like the Henkels should do to get through by phone.

"I’ll show you that here," he started.

It took forever. "Ah…how do I contact customer service?" he wondered.

And even the CEO couldn’t find a phone number. "Okay, it’s all by e-mail," he said.

Hastings has to worry about things like this because of competition. Blockbuster is nipping at his heels with its own DVD-by-mail service.

But there’s an even bigger threat that could make all DVD rental obsolete, says media reporter Scott Hettrick: downloading and getting a movie straight off the Web.

Hettrick says downloaded movies are a "very real threat" to the future of Netflix. "If people can get things electronically, maybe they don’t need a physical disc anymore," he says.

[vwxxyz]

It looks like a sweatshop. Whay are all the envelope stuffers African and Asian women?

[fandbclark]

Your story on Netflix shows that anyone can start up a business but poor organizational skills. When movies are returned they are posted as returned when the individual locations decide to post them. Example: I have taken movies to the post office that they are picked up from and at early pick-up. These movies can be posted the next day to the next week. You receive the movies on Tuesday and return on Wednesday morning the postings are not running true.

At the end of the story the reporter noted that the phone number is know posted on the web site. It must be written in fairy dust because I have gone over every link with the Netflix web site and could not find it, just like the CEO did during the show.

You should have talked to other subscribers than just the couple from Maine. We could have given you some real good stories.

[AHerring]

Corporate Headquarters:
100 Winchester Circle, Los Gatos, CA 95032, [phone], www.netflix.com

Wonder if this is the one he supposedly found. It was in the Consumer Public Relations Press Kit -- a PDF file.

If you ever looking for a phone number this is a good place to start, especially if you are tired of listening to recorded messages or computerized answering services http://www.gethuman.com/

For All......NetFlix 888-638-3549 and Press 0 for a human operator

amnj1 Amazon.com 800-201-7575

amnj1 Amazon.com 800%u2011201%u20117575

[effallah]

Customer service and website usability will always provide businesses a return on their investments and I believe that despite Netflix being there first, the company is doomed unless it can address those details.

I had to laugh when Mr. Hastings was unaware of the missing "contact us" information and unable to use his own company's website. Whether there was a phone number or not, to be so unfamiliar with the web interface to your billion dollar business is shocking, especially if your goal is to increase your customer base.

Maybe its time for Hastings to stop crowing about their cross and upselling features like 'Also Bought' lists and pay more attention to the information architecture, usability and customer service aspects of the Netflix web presence if he plans to scoop the future home movie biz.

[amnj1]

Have you ever tried to find a telephone number for amazon.com???

[wmcsnow]

I also need a phone number for Mr. Reed's customer service department. His email service doesn't work. I have sent emails and they must have a list of stock answers because the answers I get back have nothing what so ever to do with my question. They keep sending me the wrong DVDs and the wrong format. My renewal is coming up and I will not be renewing unless this gets fixed.
Please tell Mr. Reed that he is losing a customer to online movie download. Theirs is the only business I know that has no phone service available.

[amnj1]

Because I doubt they will put the customer service number on the website. (BTW when they first started they did have the number I called them to ask about the trial period back when I was getting ready to enroll way back when in the beginning) Here it is 888-638-3549
Anita

[caw451]

I had to come online to get the whole story;I missed all but the last 30 seconds because I was watching a Netflix rental!

[unabongerr]

i still dont see a phone number to contact customer service.