This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Did Netflix's Reed Hastings Lie to Us?

That said, Hastings duped me. He duped all of us.

Hastings likes to tell the story that he "invented" Netflix while returning an overdue "Apollo 13" VHS rental on his way to the gym. As he lamented paying late fees, he claims he thought somebody should take the gym membership model -- pay one monthly price and use as much or as little as you like -- and apply something like it to the video rental business.

At this point, as Hastings story tells, an idea was born.

Randolph calls that a load of crap. He claims it was a nice story a few Netflix people concocted for marketing purposes. They needed a quick, straightforward and easy-to-understand way to explain the essence of the service.

Assuming Keating, as informed by Randolph and others (Hastings did not cooperate with Keating on the book), is telling the truth, it's clear that the whole "Apollo 13" tale was little more than fiction.

In and of itself, I really don't care. But, I ask philosophically, Is a dream a lie if it don't come true or is it something worse?

Can you get through life, a cycling career or the stewardship of a company with nothing but hyper-choreographed appearances, statements and YouTube videos?

At some point, people lose confidence in you.

Hastings apparently wasn't happy about Keating's book hitting shelves, iPads and Kindles across America. I think I know why.

He probably felt like all of this Armstrong-like trash was behind him.

Sure, he looked, shall we say, "phony" in his infamous YouTube apology video, but Hastings clearly learned something from last summer's debacle. No matter how cold and detached you are, it's not humanly possible to have not learned from it.

Here's your comedy for the day. This never gets old.

That was the worst apology in the history of apologies. And, for Andy Rendich, one of the shortest tenures as the president of a division with its own catchy name in the history of Silicon Valley.

But, once he cleaned up that mess, Hastings truly got Netflix's ship back in order. He started spending less. Or, more aptly, spending smarter.

Stock quotes in this article: NFLX, FB 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs