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Reed Hastings, along with fellow software executive Marc Randolph, cofounded Netflix in 1997. The business, becoming operational in April 1998 in Scotts Valley, California, offered seven-day online rentals of movies in the then-relatively unknown DVD format. Although Netflix’s DVD rentals business has prospered, Hastings, the Netflix CEO, thinks this core business is doomed. Hastings believes that Internet video streaming will substantially displace online DVD rentals; he forecasts that as soon as mid-2013, “the business that generates most of Netflix’s revenue today [mid-2009] will begin to decline, as DVDs delivered by mail steadily lose ground to movies sent straight over the Internet.”