Randolph worked as a marketing director for Hastings' company, Pure Atria. They came up with the idea for Netflix while commuting between their homes in Santa Cruz and Pure Atria's headquarters in Sunnyvale while waiting for government regulators to approve the merger,  although Hasting has given several different explanations for how the idea was created. They considered and rejected VHS tapes as too expensive to stock and too delicate to ship. When they heard about DVDs, which were first introduced in the United States on March 31, ,  they tested the concept of selling or renting DVDs by mail, by mailing a compact disc to Hastings' house in Santa Cruz.
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