. >> reporter: ted sarandos is the co-ceo of netflix, the world's largest streaming service. >> this of the first hollywood premiere built in 1922. douglas fairbanks premiered robin hood here. big spectacular night in hollywood. >> reporter: today netflix owns the egyptian theatre. the cost to ren rate, $70 million. why did you do that? >> seeing a movie has so many different aspects in people's lives. it's inspiring. i could think back to my first time being in a movie theater watching "jaws" at 11 years old and i remember like it was yesterday. popcorn this way, soda this way, the audience screamed. that's a unique and different experience. >> reporter: and increasingly distant one. screens are smaller and ticket prices higher. it leads to a common refrain. they don't make 'em like they used to. >> how do you respond to that when you hear it? >> it's probably like everything else. the thing we grew up on is what we want. it's oftentimes the art forms move on and move and advance in ways we miss the old version of it. but they do make movies like they used to and they are better tha

to sit down with the co-ceo of that company, ted sarandos, and asked how he started the company from a modest background, and how he now sees the future of netflix. so, when you joined netflix in 2000, the company was about three years old. but relatively small. did you ever, in your wildest dreams, imagine the company would be one of the most valuable companies in the world, and you would have today a market value of over $300 billion? ted: the short answer to that question is no. i think when we joined, we had a couple hundred people, including the people who were stuffing dvd envelopes back then. blockbuster was the biggest entertainment brand in the world, with a market cap of about $8 billion. they were definitely the biggest , in terms of global footprint. i mean, most people watched their movies renting a dvd from blockbuster. and at $8 billion, that seemed unattainable. when we went public in 2002, that was for about $250 million. david: for people who are too young to remember this, blockbuster was a place you could go to buy something called a dvd. you went there, you rente