Amazon almost bought Netflix in 1998- and it inspired Netflix to drop the only profitable part of its business model

When Amazon said they were thinking of an offer in the "low eight figures," Hastings hesitated, according to the book. Randolph writes that Hastings thought that Netflix had "real potential," higher than that offer.

Randolph was fine with the money; selling would let them sidestep the issue that they weren't making money.

But, ultimately, while the two knew Amazon would eventually become a competitor, they decided it wasn't the "right moment to give up."

When Hastings and Randolph met with Amazon, rentals only made up 3% of Netflix's revenue. But Randolph writes that meeting with Bezos reminded him that they could "never compete in the DVD retail sales market."

However, pivoting fully to rentals eventually led to the subscription model that became the foundation for modern Netflix.

Even though the Netflix team didn't ultimately sell to Amazon, they did have a brief partnership. Netflix would include Amazon links for users to buy DVDs from, which, according to Randolph, sent Amazon "tens of thousands of customers." But while Amazon did link to Netflix for rentals, the links were "lackluster and hard to find," only sending Netflix hundreds of customers.

Hastings decided to quietly end the partnership, which led to another push for Netflix to focus on rentals. This one led to the end of the late fee.