Author : Dazy John | Published On : 03 Jun 2024

Netflix is a popular American subscription-based video-on-demand streaming service. The platform offers a wide range of original and acquired films and television shows across various genres. It is available in multiple languages and has a global reach. Netflix was launched on January 16, 2007, almost a decade after the pioneering DVD-by-mail movie rental service started by Netflix, Inc. As of January 2024, Netflix has over 260.28 million paid memberships in more than 190 countries, making it the most subscribed-to video-on-demand streaming media service. By 2022, around 50% of Netflix’s library in the US comprised of its original productions. The company has also expanded into other categories such as video game publishing of mobile games through its flagship service. As of October 2023, Netflix is the 24th most-visited website globally, with the US accounting for 23.66% of its traffic, followed by the UK at 5.84% and Brazil at 5.64%.

Initially, Netflix offered a per-rental model for each DVD. However, in September 1999, it introduced a monthly subscription concept. It dropped the per-rental model by early 2000 and focused on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per-title rental fees. During the dot-com bubble in September 2000, when Netflix was struggling to stay afloat, Hastings and Randolph offered to sell the company to Blockbuster for $50 million. However, John Antioco, CEO of Blockbuster, declined the offer, saying, “The dot-com hysteria is completely overblown.” Netflix experienced fast growth in early 2001, but the effects of the dot-com bubble collapse and the September 11 attacks caused the company to hold off on its initial public offering and lay off one-third of its 120 employees.

On July 12, 2011, Netflix announced that it would separate its subscription plans into two separate plans: one covering streaming and the other for DVD rental services. The cost for streaming would be $7.99 per month, while DVD rental would start at the same price. On September 11, 2011, Netflix expanded to countries in Latin America.