What exactly is Netflix?
It is an online streaming service which offers content through its online library of films and TV series. With 93 million subscribers all over the world and its presence in more than 100 countries Netflix is the largest online streaming service in the world in terms of revenue.
How did Netflix come into existence?
Netflix was founded on August 29,1997, in Scotts Valley, California by Marc Randolph and Reed Hastings.
Netflix headquarters in California
Hastings decided to start Netflix after being fined $40 at a video store for being late to return of Apollo 13. In 1997, DVDs were only available in a few markets. So, the duo tested the concept of selling or renting DVDs by mail a compact disc to Hastings’ house in Santa Cruz. When the disc arrived intact, they decided to take on the $16 billion video sales and rental industry.
Original Logo of Netflix
Thus Netflix was launched in April 1998 with only 30 employees and 925 DVDs available through the pay-per-rent model with rates similar to its competitor Blockbuster.
Growth and expansion
In 2000, Netflix refused Blockbuster’s $50 million offer to acquire the latter. In May 2002 Netflix initiated an Initial Public Offer(IPO). In 2003, Netflix recorded its first multi-million dollar profit.
Ever since it has not looked back. In 2007, Netflix decided to move away from its core business of DVDs which was a very wise move as DVD sales dropped steadily over the next few years.
In 2013, Netflix entered the content-production industry with its first original series- House of Cards. The series was an instant hit and has led to the production of several other Netflix original series like Orange Is The New Black, Narcos, Daredevil.