Netflix
History
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
In its early years, Netflix was a DVD-by-mail service, where customers would rent DVDs via the internet and have them mailed to their homes. This business model was innovative at the time, as it eliminated the need for physical rental stores and late fees.
In 2007, Netflix expanded its business with the introduction of streaming media, while retaining the DVD and Blu-ray rental business. The company expanded internationally in 2010 with streaming available in Canada, followed by Latin America and the Caribbean. Netflix entered the content-production industry in 2012, debuting its first series, "Lilyhammer."
By January 2016, Netflix services operated in more than 190 countries. Netflix released an estimated 126 original series and films in 2016, more than any other network or cable channel. As of October 2020, Netflix had over 195 million paid subscriptions worldwide, including 73 million in the United States.
Business Model
Netflix's business model revolves around its subscription-based streaming service, with three different plans based on the quality of content stream and the number of screens allowed per subscription. The company's initial business model included DVD sales and rental by mail, but Hastings abandoned the sales about a year after the company's founding to focus on the initial DVD rental business.
Netflix's most prominent business is its subscription streaming service, which allows members to watch TV shows, movies, documentaries, and more on thousands of internet-connected devices. With Netflix, a member can enjoy unlimited viewing of content without having to watch a single commercial. The company's streaming service is available in every country worldwide except China, North Korea, Syria, and Crimea.
Netflix continues to expand its content offering and aims to make 50% of its content original. Annually, the company spends billions on original series and films in an effort to provide exclusive content to its subscribers.
Content
Netflix offers an extensive library of feature films, documentaries, TV shows, anime, award-winning Netflix originals, and more. The company's primary business is its subscription-based streaming service, which offers online streaming of a library of films and television series, including those produced in-house.
In 2011, Netflix began to acquire content that would be exclusive to their service. Early content partners included Lionsgate, Open Road Films, and Weinstein Company. The company has since grown to produce and distribute content from countries all over the globe.
Netflix's content library continues to grow, as the company spends billions annually on producing and acquiring content. In 2016, Netflix released an estimated 126 original series or films, more than any other single American network or cable channel.
Impact and Influence
Netflix's innovation and dominant position in the streaming industry have had a significant impact on television and film. The company's "binge-watching" model, where an entire season of a TV show is released at once, has changed the way people watch TV.
Netflix's success has also led to a surge of streaming services, leading to what many call the "streaming wars." Competitors such as Amazon's Prime Video, Hulu, and Disney+ have all emerged as significant players in the industry.
The company's influence extends to its production of content. Netflix's original programming is regularly recognized in major award shows. The company's commitment to diversity in its content has also been noted.