How and When Did Netflix Start? A Brief History of the Company
Netflix has become the go-to entertainment streaming service for millions of people worldwide. It currently boasts an extensive range of movies, TV shows, and documentaries on its platform, all available for streaming by subscribers. However, not many people know how and when Netflix started. This article takes a brief look at the history of the company.
Netflix was founded in 1997 by Marc Randolph and Reed Hastings, both of whom were curious about the emerging market for DVD rentals by mail. Originally, the business idea was to rent and sell DVDs online, providing customers with the opportunity to browse and select movies that would then be mailed to their homes. The company started in the United States and took off quickly with its innovative business model.
By 1999, Netflix had acquired over 110,000 subscribers and was shipping an average of 1900 DVDs daily. However, with the advent of newer distribution methods like video-on-demand and internet streaming, Netflix’s original business model of mailing DVDs was becoming outmoded.
To remain relevant in a changing market, Netflix began to branch out; not by buying movie theaters or creating its studio, but by focusing on new distribution techniques. In 2007, the company launched a streaming service that allowed users to watch movies instantly on their computers. Initially, the selection was limited, but as more and more people subscribed to the service, Netflix invested heavily in licensing deals to expand its access to popular shows and movies.
Netflix made its first venture into the world of original content in 2013 with House of Cards, produced and directed by David Fincher, a popular television series that went on to become a global hit. The expansion of its content creation division has since become a core strategy of the company, allowing it to offer more exclusive and unique shows and movies to subscribers.
The company’s expansion continued globally, and today, Netflix has over 200 million subscribers spread across the globe, making it the world’s largest internet entertainment service. Over the years, it has taken calculated risks that demonstrate why it has become one of the most popular video streaming platforms in the world.