Reed Hastings Netflix

Even with the availability of free movies via internet, Netflix has continued to steadily increase its revenue from 2005 to 2009. In 2005 the company reported a net income of $41,889 which rose to $48,839 in 2006. However, the profit jumped in 2007 with the growth of subscribers rising by 25.6% in 2008 with 9,390 subscribers. The growth in the number of subscribers is certainly the cause for the increase in net income. Now in 2009 the company has a net income of $115,860 and another 30.6% raise in customers.

For Netflix's CEO Reed Hastings the raise in the companies income has not changed drastically. In 2007 the reports show that he generated a total compensation of $2,418,577 which rose to $2,760,854 a fairly large increase. This seems to be due to his salary increase from $850,000 in 2007 to $994,231 in 2008. What's interesting to note is that even with another salary increase in 2009 to $1,000,000 his total compensation actually dropped down to less than he made in 2008. The change is not drastic but doesn't seem to fit with the other executives continual growth in total compensation.

All in all Netflix and Hastings seem to be doing well and still ever growing despite the Internets attempts to make DVD renting a thing of the past.