Netflix Chief Executive Reed Hastings has joined Facebook’s board of directors, giving the social networking company expertise in digital entertainment, reports Bloomberg.
Hastings becomes the sixth director at Facebook, which has existing directors including Washington Post Co. Chairman Donald Graham and venture capitalist Marc Andreessen, the story notes.
One analyst, Atul Bagga at ThinkEquity, notes that Netflix could benefit from a tighter integration with Facebook. That might help its movie recommendations and bring more customers to the movie- and TV-streaming site, the story notes.
The move also appears to bolster Facebook as it positions itself for an initial public offering next year. Hastings took Netflix public in 2002.
“Facebook is adding a veteran of digital entertainment to its board as it prepares to compete more aggressively in video offerings,” the story says. “This year, Time Warner Inc.’s Warner Bros. studio announced plans to offer movie rentals on Facebook for $3, while Facebook and Netflix have discussed incorporating more social features into the online video-streaming service.”