Reed Hastings, CEO of Netflix, it seems it all started with a late movie and a high late return fee. Netflix was as simple as mailing movies to people and paying a flat rate regardless of how long you had the movie, meaning no late fee. This simple model has transformed the way we watch movies.

People no longer just receive movies in the mail at their homes; now they are watching movies that are streamed directly to their mobile device, tablet or TV. According to recent data from Sandvine, 20 percent of US prime-time non-mobile Internet use is Netflix instant movies. Netflix started streaming movies in 2007, with many technical problems. However, with technological advances and the increase in home broadband it has become your primary service with the benefit of receiving movies by mail as an additional service. Netflix has shaken up the industry and added a new dimension to cloud computing and internet based products.

Netflix does not have an easy road ahead. Comcast, Hulu, Amazon, Verizon, and to some extent YouTube all come for that movie streaming business. And some of these companies have more ammunition than others. Comcast has started charging Tier 3, Netflix’s back-end help in providing the mechanism for movies to stream, per “movie” sent through its system to its customers. This does not affect the end user as much as Netflix and Tier 3.

What started out as a good idea has transformed the way Americans watch movies. Netflix and Mr. Hastings have learned to stay ahead. They are willing to pay for the best and that allows them to stay ahead and set the pace.