Netflix was founded by Marc Randolph and Reed Hastings in 1997 in Scotts Valley, California. Although it started as a traditional pay-per-rental company, it converted completely to the monthly-rate system in early 2000, and since then has become well know for its unlimited rental policy. Today Netflix is headquartered in Los Gatos, CA, and has grown at an incredible rate to become one of the most well known movie rental services in the world.
Key Points in Company History
- 1997: Founded
- 1998: Website launched
- September 1999: Monthly subscription plan invented
- Early 2000: Switched exclusively to monthly subscription plans and dropped pay-per-rental services
- May 29, 2002: Company goes public
- 2003: Makes first profit of $6.5 million
- September 2004: Class action lawsuit brought against Netflix for false advertising
- 2006: Holds $1,000,000 competition for anyone creating an algorithm that recommends movies with a success rate of at least 10% better than their current algorithm
- February 25, 2007: Announces 1 billionth DVD delivery
- January 2008: Allows users unlimited access to streaming content
- November 21, 2008: Blu-Ray discs are available for an additional fee
Netflix now integrates with many different media players, including Nintendo Wii, Microsoft Xbox 360, Sony Playstation 3, TiVo, and a variety of Blu Ray and other types of media players. This integration allows users to bring streaming movies into their home, regardless of what games system or media player they use.
Netflix has changed the game in the world of movie rentals. The world's largest video retail store chain, Blockbuster, filed for bankrupcty in 2010, due largely to competitive pressure from Netflix.
Netflix's faces competition from companies like Hulu, Redbox. Many technology analysts predict that Netflix will face brand new battles from newer tech companies as user move more and more from DVD to streaming format.
Netflix was inspired when co-founder Marc Randolph received $40 in late fees after renting Apollo 13