Exclusive interview with netflix ceo reed hastings

[PSound]

Is that question from Deborah Crawford, another Netflix executive who just left the company to spend more time with here family?

I'm curious why the CFO and Chief of Investor Relations have just left Netflix?

Really Kosty?

Insinuations like that are above you.

I am a very loyal employee and even I have never worked at one corporation more than 13 years. And even them it was a variety of positions. I could not imagine having the same job for 15+ years.

If you are insinuating some sort of financial foul play, please demonstrate ANYTHING that suggest that. I already posted the very detailed breakdown of how Netflix accounts for reporting their streaming acquisitions. Their revenue is customer direct and nothing there looks to be suspect.

Even Whitney Tilson (who was famously short NFLX at the end of 2010) gave a very clear scenario that explains their growth and spending. And it certainly matches up with the majority of new subscribers being word of mouth (rapidly declining SAC costs).

[Kosty]

Don't get your panties in a wad.

( I did use a stick out a tongue in jest smilie there )

Just wanted your take on the observations from others that it seems a bit awkward that two prominent Netflix officers have just left that were an important part of their coordination with the public.

I mean its noticeable that the Chief Financial Officer and Chief of Investor Relations have just left Netflix no matter whatever the reasons. I really wanted your take on its significance and not some attack or outrage from you or accusation to me that I am saying foul play was involved.

Don't get so defensive there big fella.





http://www.businessinsider.com/netfl...s-2010-12?op=1


First the CFO then Deborah...

11 Reasons Some Investors Think Netflix's Stock Is Going To Get Crushed
Jay Yarow | Dec. 20, 2010, 3:46 PM

...

Netflix just lost its CFO Barry McCarthy


Image: Netflix

This one is a real stretch...but Tilson argues the loss of a key exec for no real reason is a bad sign for the company. It should be noted that Reed Hastings says Barry McCarthy left because he wants to be a CEO somewhere and it wasn't going to happen at Netflix.


Read more: http://www.businessinsider.com/netfl...#ixzz1J3SMsTLr


Read more: http://www.businessinsider.com/netfl...#ixzz1J3S9s94x

In bold are the critiques of Netflix. Hasting's response follows:

Netflix has lost its CFO, so it's in trouble: Hastings says the fact that its longtime CFO Barry McCarthy left is actually a great sign. McCarthy has wanted to leave a number of times in the past, but felt the business needed him too much. Now that it's in good shape, he felt ready to move on.


Read more: http://www.businessinsider.com/netfl...#ixzz1J3TLEaPO

-16-

CFO Resignation
Netflix’s long-time CFO, Barry McCarthy, resigned last
week, citing ― a desire to pursue broaderexecutive opportunities outside the company
.‖ (This sounds forced and clichéd to us)

We have no insight into what the real story here is, but our experience is that the sudden,unexplained resignation of a CEO or CFO is usually not a good sign, especially when in this caseMcCarthy was very highly regarded, had served in this capacity since 1999, and led the
company’s IPO in 2002

http://www.scribd.com/doc/45507715/W...tners-12-16-10

As to the CFO issue, Barry McCarthy is a very accomplished executive who was working for a successful, younger CEO, so he correctly figured the chances of him becoming the CEO of Netflix were not high. In early 2004 he had the same feeling, and let us know that we should launch a search to replace him by the end of 2004. During that year we entered into a huge fight with Blockbuster (BBI), and Barry felt it would be low integrity to leave us in the midst of battle. So, he agreed to stay for a few more years.
By 2008, we had substantially exited from our hand-to-hand combat with Blockbuster, and he started talking with me about the need for him to someday soon go seek his future broader role. Two weeks ago, he informed me that it was time for him to move on. He was willing to stay for up to a year, like in 2004, if we wanted to do a search. After discussions with the board, we chose his longest-serving finance lieutenant, David Wells, as our next CFO, instead of doing an outside search, and announced the transition. We feel great about David Wells as our CFO, and there was no reason to ask Barry to stay further. Barry is a super-principled guy, and if there were any known major danger, he would never have left us. It is precisely because things look so good going forward that he allows himself to think about his own career ambitions. Some lucky firm will get him as CEO.


Read more: http://www.businessinsider.com/netfl...#ixzz1J3TgMoNh

[PSound]

And Barry already has another gig...

Former Netflix CFO Barry McCarthy Lands At TCV As A Venture Partner

Netflix's former CFO Barry McCarthy has a new gig.

He's going to be a partner at venture capital firm, Technology Crossover Ventures.

TCV was an investor in Netflix once upon a time, and it participated in Groupon's recent $1 billion raise.

Rumors had been kicking up today that McCarthy was joining Coinstar to run a streaming operation. Obviously that's not happening.

He told us over email, "I remain a large NFLX shareholder and company supporter."

http://www.businessinsider.com/forme...partner-2011-4

[PSound]

And my reaction is that it isn't really news.

If one comes forward with anything negative to say, then it might be news if it is in relation to how NFLX handles it's finances. Right now it looks like Barry is working while still looking for a company to helm, and has positive things to say about Netflix.

[Kosty]

And my reaction is that it isn't really news.

If one comes forward with anything negative to say, then it might be news if it is in relation to how NFLX handles it's finances. Right now it looks like Barry is working while still looking for a company to helm, and has positive things to say about Netflix.

The news is that another executive , the Chief of Investor Relations, that was a prominent portion of Netflix investor contact also now is leaving. Its kinda noticeable.

[PSound]

The news is that another executive , the Chief of Investor Relations, that was a prominent portion of Netflix investor contact also now is leaving. Its kinda noticeable.

Shrug.

Deborah Crawford was Investor Relations. She never signed a 10-K or a 10-Q.

It is pure speculation as to why she left. Again, there is zero data suggesting any shenanigans. Indeed folks love to insinuate rumors, etc. and it gets lots of play.

Speculation about Netflix investments that do not take into account revenue (or growth)? Pages of responses. When I posted the details about how Netflix accounts for it's streaming acquisitions it got ZERO responses.


Unfounded rumors because an employee left the company? Ongoing discussion.

Bob has already weighed in on how he feels about Netflix. Why Deborah Crawford left Netflix is between her and Netflix. It could have been initiated by either party and been amicable or contentious. What we DO know is that Netflix has explicitly detailed their streaming acquisition accounting method and have successfully managed their margin during the transition to streaming. Enough where they have even expanded internationally and look to be profitable in the new market this year and will likely slowly (and fiscally responsibly) tackle a new market either later this year or next.

[comixguru]

The news is that another executive , the Chief of Investor Relations, that was a prominent portion of Netflix investor contact also now is leaving. Its kinda noticeable.

They replaced her with a 5+ year Netflix executive from FP&A. David Wells, the new CFO, ran the FP&A team there for the last 3 years, and was a director in financial planning and analysis for the 3 years before. It seems appropriate to me that he might move one of his directors into this critical role. Not that I know anything.

Also, this Deborah Crawford stuff is being pushed out there by someone who has said:

Disclosure: I am short NFLX via a long position in put options.

[Kosty]

They replaced her with a 5+ year Netflix executive from FP&A. David Wells, the new CFO, ran the FP&A team there for the last 3 years, and was a director in financial planning and analysis for the 3 years before. It seems appropriate to me that he might move one of his directors into this critical role. Not that I know anything.

Also, this Deborah Crawford stuff is being pushed out there by someone who has said:

Now that makes sense that the new CFO might want to bring someone along for that position.

Thanks.

[vikingfan]

I am a very loyal employee

We KNOW, we read your posts.

[Pro-bassoonist]

What we DO know is that Netflix has explicitly detailed their streaming acquisition accounting method and have successfully managed their margin during the transition to streaming.

What we ALSO know is that Netflix has filtered questions about their business practice - which is one of many reasons why various people have asked very interesting questions.

Pro-B