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The convenien...




The convenience inspires a fervor among Netflix enthusiasts, and that's what caught the attention of Walmart.com and Blockbuster. But it's the recommendation engine that fascinates independent film producers and Hollywood studios, which see Netflix as a marketing vehicle for off-center movies that are difficult to promote through mass media. Rather than pushing the masses toward what's new the way Hollywood does today Netflix pushes subscribers toward titles they're likely to enjoy. Given a large enough customer base, the Netflix model could even change the way Hollywood develops movies.



Hastings sold his first company, Pure Atria Software, in 1997, for three-quarters of a billion dollars. After that, he spent a year as CEO of TechNet, the Silicon Valley lobbying organization; in 1999 he became president of the California Board of Education, where he has pushed to improve the state's notoriously underperforming public school system. That means monthly trips to Sacramento to oversee board meetings, craft motions, consider waiver requests, and review accountability standards. After one all-day assembly, he's unwinding over a latte at a Starbucks near the state capitol.



"What motivates you these days?" I ask. He lifts his mouth from his cup; a trace of foam clings to his upper lip. "The dream 20 years from now," he says, "is to have a global entertainment distribution company that provides a unique channel for film producers and studios." He nods toward the mermaid logo above my head. "Starbucks is a great example. Howard Schultz talks about building the brand one cup at a time. I'd love to be Howard Schultz. As Starbucks is for coffee, Netflix is for movies."


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