Netflix is a online video streaming site and production company headquartered Los Gatos, California. The company’s primary business is subscription based streaming service offering online streaming of thousands of movies and Television series from its library.
It was started from United States in late nineties but within 20 years, the company has scattered over more than 190 countries. According to Netflix, as of 2020, Netflix has had over 195 million paid subscription worldwide, including 73 million on United States.
Rise of Netflix
Marc Randolph and Reed Hasting founded Netflix on August 29, 1997. Initially, Netflix’s started DVDs sales and rental by mails but about a year after the company focused on DVD’s rental business. Their business model was, once you buy subscription for a fixed time, you can borrow every DVD that the company’s library had. And that idea became popular rapidly because before that time you should pay for each DVD if you wanted them for rent. In 2002, Netflix initiates Initial Public Offering(IPO) which brought them a capital of $82 million for the growth of the company. In 2003, Netflix released that it has reached 1 million subscribers. Also, same year, Marc Randolph retired from the business and Reed Hasting have to move forward the company.
Dominance of Netflix
Netflix revolutionized it’s service in 2007 as it started it’s streaming service. Now, Netflix’s subscribers can borrow DVDs in rent as well as can watch movies direct through their site. Netflix expanded internationally as it started it’s service initially in Canada, Latin America and Caribbean in 2010. Netflix did launched it’s first series House of Cards as their debut in content production industry.
In 2016, Netflix expanded to 190 countries with more than 126 Netflix Original’s. From 2018, it is one of the fastest growing company in US. Netflix became the largest entertainment/media company by market capitalization($141 Billion). Now, it ranks in 9th position in top brands of the world. It had announced that it will invest more then 2 Billion US dollar to fund new content and it seems that it will continuously dominate the digital entertainment sector for a long time.