Netflix is a media service provider and a production company in the US and launched on April 14, 1998. It is founded by Reed Hastings and Marc Randolf and it has it’s headquarters are at Los Gatos, California. The primary business of Netflix is online streaming of films, in-house produced and television programs to its subscribers. It has over 148 million subscribers as of May 2019 with subscribers spread worldwide except mainland China. Netflix is a member of the Motion Picture Association of America, MPAA.
Netflix initially did rental and sales of DVD but sales were later abandoned after a year. Netflix introduced streaming in 2010 while still maintaining DVD and Blu-ray rental. It has expanded much in 2012 to offer a variety of original content through its online services. The company has secured billions of dollars as debt in an effort to produce new content, secure rights and expand its business.
Netflix started with flat-fee membership plans that offer unlimited rentals without a due date, late fees, free shipping. After a bad performance in both DVD and online business during 2001, the sales of DVD around thanksgiving periods during the same year became very popular and helped Netflix to earn huge subscription base.
Netflix initiated Initial Public Offering, IPO, selling 5.5 million shares of US $15.00 per share on May 29, 2002. On Jun 14, 2002, Netflix sold 825,000 more shares at the same price. Netflix faced substantial losses during its initial years. It posted its first profit on the US $272 million during 2003 fiscal year. By 2005, Netflix has about 35,000 films and a million DVDs shipped out every day. The company was sued for false advertisement related to unlimited rentals with one-day delivery.
Netflix had played an important role in the distribution of independent films. It has also produced original contents. Netflix has grown quickly to become the largest source of internet streaming. Netflix is reported to consume 15% of internet bandwidth across the world. Today its the largest online streaming services in the world with its huge global spread and high popularity.