CEO Etiquette

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us).    --Excerpt, apology email from Netflix CEO Reed Hastings to all customers.

Dear Reed Hastings,

I always considered us to be on friendly terms. So imagine my surprise upon opening your most recent email.  Let me paint you a picture.

I sat down at the computer, put on my glasses and said, “Oh, an email from Reed! He’s probably writing to converse CEO to CEO—or I guess CEO to ex-CEO now. Maybe he’s writing to offer me his condolences about my beloved Borders going under. It’s a dark time for me, and I appreciate any and all support. Or maybe he has a new project he wants to bring me in on! Yes, that’s probably it, he wants to help me out while I’m down.” But that wasn’t it. You just wanted to kick me, and Borders, while we were down.  

The Halloween stores that rented our old buildings haven’t even moved in yet, and you’re already taking cheap shots. And lumping us in with AOL? Low blow. It’s not like we became uncool, we just went out of business. Plenty of companies go out of business! And we went out quietly, we didn’t drag down Time Warner or anybody else. 

And it’s not like you’re some savvy, intelligent businessman. Emailing all your customers and admitting a mistake? I must have missed Harvard Business Review’s article on that brilliant strategy. And come on, you’re renting movies. It must be sooooo hard to get people interested in the product of a billion dollar industry—a product that focuses on things like true love, explosions, and jokes. Borders was selling books. Do you know what books are about? Things like tax reform law and how to cope with depression. Try selling those, Hastings! 

Are you attacking me because it looked like I couldn’t remember your wife’s name at the Helicopter and Scotch CEO party last year? Because you know my mouth was full, I had just been hand-fed like seven or eight grapes. Her name is Barbara! And, as I’ve explained many times, earlier in the party I did say, “Good one, Babs!’ while we pelted the help with golden coins. …Sigh, I’m going to miss those parties.

You look fat in your youtube video, by the way. 

Best,

Mike Edwards

Borders Ex-CEO