There isn’t a single person in the world who hasn’t watched a movie. A Sunday movie at home with family or friends – that’s Netflix. It is an American entertainment company and a streaming service that offers a variety of TV series, movies, and animated films. It is the largest streaming service in the world by the number of subscribers.
The name consists of two parts – Internet (Net) and Flicks. This abbreviation reflects the company’s business model – movies on the internet. The owner of the company is Reed Hastings. Institutional investors include Capital Group Companies, The Vanguard Group, BlackRock, and Morgan Stanley. Today, the user base is growing to 40 million people per month, which is eight times higher than last year’s figures.
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How the Netflix Story Began
The company was founded by businessmen Marc Randolph and Reed Hastings, who aimed to replicate and surpass Amazon’s success. In 1997, the era of VHS tapes ended. There was no internet with broad access to movies back then. Sales of DVDs featuring the best blockbusters began. Reed Hastings proposed a very interesting marketing move – renting DVDs through an online service. Within two years, significant progress was evident. The number of DVDs increased from 900 to 250,000. The staff grew to 120 employees. Deliveries began to be made through the mail, and monthly subscriptions were introduced.
From 2000, the online service began to proactively meet subscribers’ needs. Following the 2001 terrorist attack, when people were afraid to go to theaters, the number of users doubled. The company increased the number of films and diversified them. It started to feature movies from European, Indian, and other international companies, which greatly boosted the service’s popularity.
After the dot-com bubble burst, Netflix sold its shares, earning $270 million in profit. Marc Randolph left the company to start his own book rental business. Meanwhile, the number of users grew to 1 million.
In 2005, the company surpassed its own success. One million orders were fulfilled in one day with 4 million subscribers. The media labeled Netflix a growth leader. Two years later, the company switched to an online-only model. By 2010, Netflix was already selling its products in Western Europe and Latin American countries. Five years later, it expanded to Australia, New Zealand, and Japan.
The First Netflix Series
Leaving all competitors behind, the company decided to start producing its own films. In 2011, Netflix Original was created – a subsidiary that began working on its own shows. The first was the series “House of Cards.”
Now the company collaborates with writers from around the world. By 2013, a deal was signed with the comic book publisher Marvel, which helped increase the audience to 50 million subscribers. Series like “Iron Fist,” “Daredevil,” “Luke Cage,” and “Jessica Jones” appeared. Combining business strategy and modern technology, the company earned $1 billion in profit for the first time in the fall of 2019.
Video: Interesting Facts and History of Netflix
Every reader will be interested to learn about the milestones the company has gone through and how it has faced challenges while striving for its goals. In the following video, you can trace Netflix’s development journey.
What is Netflix’s Strategy?
The company’s management has successfully combined various business models, including:
- Full transition to an online format;
- Transition from distribution to creating original content;
- Continuous audience research and statistical analysis.
By analyzing this information, the company started producing its own movies. The first series, “House of Cards,” was filmed based on the customer database, and it was a great success. All subsequent series are also created using this principle.
The company’s slogan is “See What’s Next.”
Since 2018, Netflix has created its own font, Netflix Sans, and uses unconventional advertising. Typically, before the release of a new movie or series, the company organizes promo campaigns to attract viewers’ attention.
In addition, Netflix constantly monitors its competitors. Many companies, including Disney, Viacom, and HBO, are striving to develop their own streaming services and putting in a lot of effort. Paolo Pescatore, a technological analyst at PP Foresight, said that we are in for a tense battle between Netflix and other firms. Therefore, the company’s library of original content is expanding in many genres and countries worldwide.
What is Netflix’s Mission?
The management and employees of the platform believe that the main task is to create quality entertainment content that can engage viewers and evoke smiles or other emotions.
The company considers excellent service, ethical behavior, quality content creation, and affordable prices as its core values. Corporate values include productivity, honesty, creative thinking, reliable cooperation, and communication.
Final Thoughts
Netflix continues to grow rapidly, introducing innovations in the streaming industry and producing original content. The company is adapting to new challenges, maintaining its leadership position and expanding its audience around the world.
Frequently Asked Questions About Netflix
It is a platform for streaming movies and TV shows on subscription-based, internet-connected devices.
It is a combination of the words Internet and Flicks, which translates to internet and movies.
Yes, there are several dozen. In May 2024, the Ukrainian-Italian-Czech-Moldovan film “My Carpathian Grandfather” was released.