Netflix: A Brief History

Founding and Early Years

• Founded: 1997 by Reed Hastings and Mark Randolph
• Initial Service: DVD rental by mail, inspired by Hastings' frustration with late fees
• Challenges: Initially struggled to gain traction

Business Model Innovation

• 1999: Introduced a subscription-based model
  • Unlimited DVD rentals without late fees
  • Improved customer retention
  • Set stage for future innovations

Shift to Streaming

• 2007: Launched streaming service "Watch Now"
  • Marked a pivotal shift towards digital content delivery
• Partnerships: Collaborated with hardware platforms like Roku, Xbox, and Playstation
  • Expanded accessibility of the service

Technical Developments

• 2008:
  • Major database corruption incident
    • Prompted migration to Cloud hosting
    • Enhanced scalability and reliability
• Content Licensing: Significant deal with Starz in 2008
  • Provided a diverse library for streaming

Original Programming

• 2013: Launch of original programming
  • First major series: House of Cards
  • Established Netflix as a leading content creator

User Experience Innovations

• Developed a sophisticated content recommendation system
  • Enhanced user experience and retention

Global Expansion

• By 2016: Expanded streaming service to 190 countries
  • Established Netflix as a global entertainment powerhouse

Conclusion

• Netflix stands as a testament to visionary leadership and strategic innovation in the video streaming landscape.