Reed Hastings and Marc Randolph launched Netflix in 1997 in Scotts Valley, California, in Santa Cruz County. Reed Hastings has stated that the idea was inspired by a $40 fine he received for renting the film Apollo 13 from the now-defunct Blockbuster and returning it six weeks late. While working out at the gym one day, the sting of the fine spurred him to create a business that allowed people to order movies online and have them mailed to them.