Blog #4

 Netflix

 

On Reed Hastings’ and Marc Randolph’s drive to work they initially had a startup business called Pure Software which was a debugging tool for software. Hastings and Randolph carpooled to work together, which is where the idea began for Netflix. Back in 1997 Hastings had the idea after his rental of the movie Apollo 13 from Blockbuster was returned 6 weeks late and he was fined $40. The name Netflix comes from “net” for the internet and “flix” for films. Hastings would fund the idea and Randolph would run it. Randolph would own 30% but holds the position of CEO and Hastings owned 70%. Their ideas led to them trying to find a way for better viewing of the shows and movies all wanted to watch but did not want the hassle of getting to these options. 

In 1999 Netflix began offering online subscriptions through the internet. Subscribers would choose movies and tv titles through the website and were then mailed their choice in the form of a DVD with a prepaid return label. They offer members unlimited rentals without due dates, late fees, or rental limits. Netflix innovated the future by introducing a new system in 2000 which used members’ ratings of previously watched titles to predict future choices. This is seen later on in the future of Netflix also when the website predicts future titles for you to watch based on past viewings. This has helped me choose things to watch and is helpful to many other people too. Next, in 2003 they issued a patent to cover their subscription rental service. 

In 2007 was when I believe their biggest innovation took place. Netflix began offering the option to use the internet to stream directly to their at-home TVs without the use of DVDs through the use of the internet. Netflix’s new partnership with Xbox, Blu-ray players, and TV set-top boxes grew the market in another huge way. Connecting their streaming platform with devices that people are using to watch other things allowed their streaming service to be reached easier. In 2010 streaming began on mobile devices which allowed those who are addicted to their cellular devices to now be able to use this platform to watch tv which has not been seen before. In the next upcoming years, they started streaming many new shows and also showed some shows in 4K ultra HD. 

In 2016 Netflix had a huge jump in its sales. They expanded to 130 new countries which brought their service to 190 countries and they now showed their shows in 21 different languages. They also introduced the download feature which allowed for on-the-go viewing. At this point, they are considered a lead user and are adopting new technology as it comes in and doing it at a very quick rate. In 2021 they had more than 200 million subscribers and offered more than 2,400 original titles.

The invention quickly changed the way all of us view shows and movies. We no longer had to return our movies in a certain time frame, watch commercials or have to leave our house to get to the shows and movies we wanted to watch, which we know now that with COVID this innovation saved many people. Netflix got 16 million new users during the lockdown. Netflix grew in exponential ways throughout the years and has changed the way we view shows and movies with it all being right at our fingertips.