Collaboration: The Way of the Future

Dear Reed Hastings [CEO of Netflix(NFLX)],

I am an avid user of your product and have been for the last year or so and I love the service. Recently, your company introduced an online system of digital dvd rental which is a great idea with tremendous potential, but I believe the idea of viewing movies on the computer would not be too enthralling to all your customers, me included. Movies are meant to be enjoyed in the comfort of one's sofa or recliner on a big screen TV, not in an uncomfortable computer room.

Therefore, I'm proposing that you join forces with Apple(AAPL) in order to improve the viewing experience for us all. My plan is simple, but extremely rewarding.

• Utilize the new Apple TV, a device hooked up to your TV, which wirelessly syncs to your iTunes library so that you can view movies on your television
• This would make both the consumer and your wallet happy
• Your movie database would be accessible from the iTunes Music Store and only members of Netflix would be able to take out movies
• iTunes users would see your product and quite possibly try it out due to their constant exposure to it
• Also Apple would benefit because the reverse scenario would apply; introducing your members to their products
• Your consumer pools would combine and result in increased profits for both companies
• Focus on getting the movies to the consumers, let Apple worry about its presentation

Such a partnership would allow you to make great strides in your newly acquired race with Blockbuster Total Access. Not only would this deal benefit your company, but also Apple because it would strengthen their hold on the online movie industry, an area which it has started to develop since its introduction of the video iPod.

Mr. Hastings, we're living in an era of collaboration in which companies must work together and combine there capabilities and influence in order to achieve success. Now that the world has become "flat", as Friedman adeptly asserts, American products must be able to match the cost and quality of those around the world. This means that our companies must put their heads together because 2 is better than 1.
-KH