Netflix, Inc. (NFLX) CEO Reed Hastings: The Sauron of Silicon Valley?

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How does this tale help Netflix investors?
This episode also shows you why Apple Inc. (NASDAQ:AAPL) isn’t likely to buy Netflix, Inc. (NASDAQ:NFLX) outright anytime soon. The two corporate cultures are almost exact opposites, and Apple would likely need to rebuild Netflix from scratch, as the top talent balks at Cupertino’s ultra-tight reins. Just look at the question of digital content formats. Apple requires that you meet its specifications exactly, because Apple Inc. (NASDAQ:AAPL) won’t sully its perfect system designs with support for additional formats. Keep it tight, keep it clean. By contrast, Ronca puts Netflix, Inc. (NASDAQ:NFLX) at “the other extreme: give us whatever and we’ll put it through. And that’s been our model.”

That model isn’t scaling fast enough these days, so Netflix has started to place some quality demands on incoming digital source materials. But you’ll never see Netflix drawing a line in the sand, demanding that content producers fit a certain template or else, like Apple does. Apple Inc. (NASDAQ:AAPL) relishes in telling its users and developers what to do. Netflix, Inc. (NASDAQ:NFLX) simply wants to play with everybody, on any platform, and will bend over backwards to make it happen.

That’s why the company stood ready to jump at Apple’s invitation, with the full backing of its local Sauron. You can bet that Hastings will be ready to jump on the next unexpected business opportunity with impunity, regardless of how short the development lead time might be.

This is the kind of opportunistic management that makes me happy to be a Netflix shareholder for the long term. Hastings will leave no stone unturned in search of the next big thing.

The article Netflix CEO Reed Hastings: The Sauron of Silicon Valley? originally appeared on Fool.com.

Fool contributor Anders Bylund owns shares of Netflix, Inc. (NASDAQ:NFLX), but he holds no other position in any company mentioned. Check out Anders’ bio and holdings, or follow him on Twitter and Google+. The Motley Fool owns shares of Apple Inc. (NASDAQ:AAPL) and Netflix. Motley Fool newsletter services have recommended buying shares of Netflix and Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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