EOTO: The History of Netflix

    Netflix has become one of the world's top streaming services, containing both original and classic movies, shows, and documentaries. Personally, I use Netflix to watch my favorite movies and TV shows due to the app's convenience and reliability. According to research, Netflix has approximately 220 million memberships globally.  The average cost of a Netflix subscription is $15.49 USD per month. That's an average of $40,893,600,000 per year based on subscription revenue alone. Not only is Netflix dominating the video streaming field, but they are making an extremely successful revenue while doing it. 

The "Founding Fathers" of Video Streaming

In 1997, Reed Hastings and Marc Randolph (an HPU Innovator-in-Residence), proposed an idea which entailed renting DVD's containing hit movies and television shows via mail. Through the growth of this concept, the original idea of Netflix was born.  

Pictured: Hastings & Randolph after Netflix's NASDAQ debut in 2002. Credit: Marc Randolph

Many entrepreneurs expressed their concerns about Netflix to both Hastings and Randolph. The pair was rejected more than 1,000 times when they pitched the original idea to investors. Though they faced more negative feedback than positive, they believed in their idea, and it began to flourish. 

The Growth of Netflix

    From 2002 to 2006, Netflix grew exponentially. Their membership grew to 5 million subscriptions, allowing subscribers to rent an unlimited number of DVD's with no due dates, late fees, or limits. These factors separated Netflix from their at-the-time competitors such as Blockbuster, who turned down Randolph and Hastings when they first pitched Netflix to the company. 

Streaming was introduced from Netflix in 2007, which ultimately revolutionized the way media and television have developed today. Netflix was the first real success story of video streaming, which is huge, considering the extremely quick development of the company. In its first 20 years, Netflix quickly became a $100 billion dollar company, now worth even more. Netflix continued to pursue worldwide growth throughout the next few years, expanding into Canada, Latin America, and the Caribbean. Red "Netflix" buttons started to appear on remotes, as well as compatibility with devices such as the Xbox. 

An extremely monumental moment for Netflix was in 2015, when their first original feature film, "beasts of No Nation," was introduced for streaming. This became a gateway for Netflix to utilize original works to create revenue, while also working with different names in Hollywood and beyond. 

Netflix's Lasting Impact

Last August, Netflix turned 25 years old. It is now the most popular streaming service in the world, and is available in more than 190 countries worldwide. Though Netflix has received immensely popular reviews and has revolutionized the TV industry, the cable television industry has suffered, simply due to a lack of the need for cable as streaming services become more prevalent within the media. There are also some cons, such as the normalizing of binge-watching shows, creating a sedentary lifestyle as well as an escapist view on responsibilities of daily life. Ultimately, Netflix is forcing the television industry to adapt to their standards, or die trying. They are extremely successful and their global impact has affected many in an extremely positive light.