Hastings: Netflix went vertical because legacy studios would stop licensing content
Reed Hastings · a16z Podcast | Tech and Entertainment in the 'Era of Mass Customization' · Jan 2, 2019 · at 15:59
Reed Hastings, CEO of Netflix, explains the strategic motivation behind Netflix's push into original content production in 2011–2012.
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“By 2011, 20 12, we were realizing that many of the firms that we were buying from were eventually going to want to run their own streaming service, and that we had, we did not have a reliable supply, and so there's a bit of the burn your boats Cortez model, which is we had no choice but to make it work, and we had to go vertical because we were dependent on these firms that it was not going to be in their interest to sell to us over time”
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