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Ev Williams: What He Admires Most in Reed Hastings Is the Willingness to Destroy His Own Business

By Ev Williams · Mindset & Career · 1 min read

Williams says Hastings killed DVD-by-mail to build streaming. Most CEOs cannot destroy what made them successful.

Key Points

Hastings cannibalized Netflix's profitable DVD business to bet on streaming
Most CEOs protect the existing business and miss the future
The willingness to destroy your own revenue stream is the rarest form of courage

The willingness to destroy your own profitable business to build the future one — that is what separates Hastings.

The Kill

Netflix's DVD-by-mail business was profitable. Growing. Working.

Hastings saw that streaming was the future. So he started killing the DVD business.

Wall Street punished him. Customers complained. The stock dropped 75%.

The Courage

Williams says this is the rarest form of CEO courage.

Most leaders protect what works. They milk the existing business until it dies naturally.

Hastings killed it deliberately. Before anyone forced him to. That takes guts.

Destroying your own profitable business to build the future — that separates the greats.

The Result

Netflix became the dominant streaming platform in the world.

The DVD business was worth millions. Streaming is worth hundreds of billions.

Hastings traded millions for billions. Because he was willing to destroy what he had built.