Netflix: Everything You Need To Know!

Netflix:
Everything you
need to know!
Who started Netflix?
Netflix was first founded in August of 1997 by two serial entrepreneurs, Marc Randolph and Reed Hastings. The company
began out in Scotts Valley, California, and has grown to become one of the world's leading internet entertainment platforms.
When it first opened, Netflix was purely a movie rental

service. Users ordered movies on the Netflix website, and
received DVDs in the post. When they were finished with
them, they would simply post them back to Netflix in the
envelopes provided. At the time, this was seen as a boon
to those who did not have a video rental store nearby
(remember those?).
Today, Netflix streams movies and has more than 151

million paid subscribers in over 190 countries around the
world. It offers a wide range of TV series, documentaries,
and feature films across a wide variety of genres and
languages, including original productions.
When and where was
Netflix founded?
As previously mentioned, Netflix was founded in

1997 in Scotts Valley, California. It was originally a
rent-by-mail DVD service that used a pay-per-rental
model.
Users would browse and order the films they wanted

on their website, put in an order, and Netflix would
post them to your door. After renters had finished
with the DVDs, they would simply post them back.
Rentals cost around $4 each, plus a $2 postage
charge. After significant growth, Netflix switched to a
subscriber-based model.
With this model, users could keep the DVDs for as long as they liked, but could only rent a new movie after returning their
existing one.
Why is Netflix called Netflix?
You could probably work this one out for yourself. But in case you are still stumped, the name Netflix is a combination of
"Net" (as in the abbreviation for "internet" and "Flix" (a variation of "flick", the common abbreviation for a movie or film).
How was Netflix founded?

At the time Netflix was founded, Randolph was working as a marketing director for Hasting's company Pure Atria. He was
also the co-founder of MicroWarehouse (a computer mail-order company).
Hasting would later sell Pure Atria to the Rational
Software Corporation in 1997 for $700 million.
By all accounts, the pair came up with the idea for
Netflix during a commute between their homes in Santa
Cruz and Pure Atria's in Sunnyvale.
Hastings would supply the seed capital, and invested $2.5
million into the startup in cash. Inspired by Amazon's e-
commerce model, the pair explored various portable items they
could use to sell over the internet in a similar fashion.
Netflix launched in April of 1998 as one of the world's first
online DVD rental companies. They had only a few staff, and
just under 1000 titles at the time.
The company celebrates
1 million accounts in 2003
This year, Netflix hits a new record for the number of
members, with more than 1 million. The company
also issues a patent with the U.S. Patent and
Trademark Office for its subscription rental service,
with some other extensions.
Co-founder Marc Randolph steps down as a member

of the board and leaves Netflix in 2003.
2016 is a big year for Netflix

Netflix expands to another 130 countries around the world, bringing its reach to a total of 190 countries. It also offers
programming in 21 languages.
They also unveil their ‘Download’ feature, which allows members to download TV shows and movies for offline viewing.
What does the future have in store for Netflix?
Netflix's subscriber base has grown to well over 180 million, with 70 million or so from the United States alone.
Many experts believe that the future could look less rosy for Netflix. This is, in part, because of the explosion in other
streaming services launched to challenge Netflix's seeming dominance.
Netflix, to its credit, appears to have predicted the impending threat several years ago, as it acknowledged that major media
conglomerates would start to pull their content from Netflix to add to their own services.
"This is why, in 2018, Netflix spent $12 billion building

its library of original films and series, an 88% uptick
from 2017. And, spend on original content this year is
expected to reach $15 billion. The strategy was to
backfill its library with original content to gain and
retain subscribers," according to Forbes.
Based on this, it seems Netflix will continue to focus on
its own content going forward, rather than relying on
potential streaming competitors not pulling their
content from the platform.
Another option is for Netflix to move to an
advertisement-based system in the future. However,
up to this point the company has been staunchly
opposed to this.

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Netflix:

When it first opened, Netflix was purely a movie rental

Today, Netflix streams movies and has more than 151

As previously mentioned, Netflix was founded in

Users would browse and order the films they wanted

How was Netflix founded?

Co-founder Marc Randolph steps down as a member

2016 is a big year for Netflix

"This is why, in 2018, Netflix spent $12 billion building

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