Reed Hastings, Founder of Netflix
Welcome to Inflection Moments Weekly, the newsletter for founders, entrepreneurs, and investors who want a front-row seat to the defining moves that built the world’s most extraordinary companies.
Every issue delivers concise, repeatable insights into how top entrepreneurs approached their toughest decisions, shaped winning strategies, and turned critical moments into lasting advantages. Whether you’re running a scrappy small business or the next unicorn, this is your shortcut to the leadership frameworks and strategic playbooks that matter most.
Now, let’s dive into this week’s episode.
Picture this.
It's 2011, and Reed Hastings is about to make what looks like the biggest blunder in corporate history.
Netflix stock is at $304 a share. The company has 24 million subscribers. By all accounts, they're absolutely crushing Blockbuster and winning the DVD-by-mail war.
Then Reed does something that sounds absolutely insane - he decides to split Netflix into two companies, raise prices by 60%, and - get this - call the DVD business Qwikster.
Within weeks, Netflix loses 800,000 subscribers. The stock plummets 77%. Saturday Night Live is making fun of him. Wall Street analysts are calling for his head. Most CEOs would be done. Career over.
But here's what's wild. This disaster - this complete catastrophe - becomes the exact moment that transforms Netflix from a DVD company into the streaming giant that's eventually worth $300 billion.
How? How does that even happen?
Because while everyone else is panicking, Reed is doing something completely different. He's using what he calls "farming for dissent" and treating failure as data.
He's applying a decision-making framework that most entrepreneurs never learn - one that he'd been building through five pivotal moments that shaped not just Netflix, but how you and I think about building companies in the 21st century.
Today, you're going to hear the story of those five inflection points. And more importantly - much more importantly - you're going to learn the specific mental models Reed used to navigate each crisis. Mental models you can apply to your own entrepreneurial journey.
Want to hear the full story? This article just scratches the surface of Reed’s remarkable journey. Listen to the complete episode of Inflection Moments to discover the deeper insights about decision-making, strategic thinking, and what it really takes to build something extraordinary while staying true to your principles.