In late 2011, Netflix CEO Reed Hastings was widely criticized for the way in which he decided to separate the Netflix DVD-rental business from its Web streaming service. Some customers were confused by the new pricing strategy; others were angry. But, in this era, things sure turnaround quickly.
In the most recent issue of Businessweek, Reed Hastings is on the cover, with the caption: “The Man Who Ate the Internet” (a title bestowed because of the amount of bandwidth consumed by Netflix and it customers).
As Ashlee Vance writes: “On a normal weeknight, Netflix accounts for almost a third of all Internet traffic entering North American homes. That’s more than YouTube, Hulu, Amazon.com, HBO Go, iTunes, and BitTorrent combined. Traffic to Netflix usually peaks at around 10 P.M. in each time zone, at which point a chart of Internet consumption looks like a python that swallowed a cow. By midnight Pacific time, streaming volume falls off dramatically.”
Click Hastings’ photo to read more.
Photo by Bryce Duffy