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[Audio] NPR On The Media interview about Netflix: "Cutting the Cable"

Sept. 25, 2009 Last year, Netflix spent about a quarter of its $1.4 billion sending its little red envelopes back and forth through the mail. That’s why it would rather stream movies directly to your TV. As Wired reporter Daniel Roth tells it, if Netflix can cut the same content deals with Hollywood as Comcast and Time Warner - this could be the beginning of the end for cable. Interview by Bob Garfield. Transcript. Listen Now.

Netflix Inside

Netflix Inside

It's everywhere—on your computer, in your Xbox 360, backed into your TV. Now CEO Reed Hastings wants to let you watch every show and movie ever made—instantly.

WIRED magazine
October 2009 (17.10) issue

By Daniel Roth

It had taken the better part of a decade, but Reed Hastings was finally ready to unveil the device he thought would upend the entertainment industry. The gadget looked as unassuming as the original iPod—a sleek black box, about the size of a paperback novel, with a few jacks in back—and Hastings, CEO of Netflix, believed its impact would be just as massive. Called the Netflix Player, it would allow most of his company's regular DVD-by-mail subscribers to stream unlimited movies and TV shows from Netflix's library directly to their television—at no extra charge.

The potential was enormous: Although Netflix initially could offer only about 10,000 titles, Hastings planned to one day deliver the entire recorded output of Hollywood, instantly and in high definition, to any screen, anywhere. Like many tech romantics, he had harbored visions of using the Internet to rout around cable companies and network programmers for years. Even back when he formed Netflix in 1997, Hastings predicted a day when he would deliver video over the Net rather than through the mail. (There was a reason he called the company Netflix and not, say, DVDs by Mail.) Now, in mid-December 2007, the launch of the player was just weeks away. Promotional ads were being shot, and internal beta testers were thrilled.

But Hastings wasn't celebrating. Instead, he felt queasy. For weeks, he had tried to ignore the nagging doubts he had about the Netflix Player. Consumers' living rooms were already full of gadgets—from DVD players to set-top boxes. Was a dedicated Netflix device really the best way to bring about his video-on-demand revolution? So on a Friday morning, he asked the six members of his senior management team to meet him in the amphitheater in Netflix's Los Gatos offices, near San Jose. He leaned up against the stage and asked the unthinkable: Should he kill the player?