THE Netflix completed 25 years of existence last week, releasing a special video that briefly describes his story. However, there are many details along the way that have been left out teaser. like deadline Comments, the platform may have a strong list of competitors these days, but it has long had the market to itself – more than a decade.
ON streaming “Tu Dun” transformed the media and entertainment business, changing the way we consume movies, series, documentaries and even games every day. In this publication, we will recall a large part of Netflix’s history, highlighting important moments in its evolution.
The foundation of Netflix
Netflix was founded in August 29, 1997 per Reed Hastings and Marc Randolph. The former was the CEO of a software company called Pure Atria, which acquired Integrity QA, an organization the latter co-founded. However, Pure Atria was sold during the “1990s boom” and while still in office, Randolph wanted invest in a new one starting.
Legend has it that Hastings was fined $40 for returning the film late. Apollo 13 at Blockbuster, which was the largest rental chain in the world, and asked himself, “What if there were no late fees?” But Marc Randolph confirms that the real story involves a lot of “brainstorming” until the movie disc rental project is developed.
Netflix’s first office was located in a former bank branch inside an office park in Scotts Valley, and was later moved to Santa Clara County. Usual initial investment of 1.9 million USDthe company hired a dozen people to “run” DVD rental services with delivery and return via courier service.
Netflix headquarters in Los Gatos. (Guide to Silicon Valley)Source: Guide to Silicon Valley | showmetech
In the first six months, the focus was build an e-commerce website facilitate the sale and rental of DVDs – which became the essence of the company in the future.
Netflix’s first steps
In the first tests, Marc and Reed sent media to themselves. VHS tapes were too fragile to ship and DVDs were still new to the market, but the latter proved to be the best option.
Once this is resolved and the online platform is working, Netflix services officially started on April 14, 1998. Netflix was the first Internet portal for renting and selling DVDs, with fewer than 1,000 titles available. And the first 150 orders arrived at once and crashed the company’s servers.
Envelopes are sent by Netflix via mail. (Netflix)Source: Netflix
Netflix via subscription
The first year of activity was difficult for Netflix. The costs were high and so was she almost sold to amazon at some point. However, the founders believed in their business and launched in 1999 your first subscription plan. The client paid the monthly fee and received three movies at once in red envelopes. There was already free trial, is awarded when inviting a friend, via a code, to the platform. “Can we let them keep the DVDs? Can they keep them as long as they want? And when they want another one, we’ll send it back and replace it. There will be no due dates or late fees,” explained Randolph.
Netflix website 1999 (Computer History Museum)Source: Computer History Museum | showmetech
News added an area to create a list of favorite movies, a recommendation engine and a community created by your website it attracted about 200,000 subscribers. After going public in 2002 and launching a public offering of shares on the Nasdaq, the company grew rapidly, reaching 1 million signatures in 2003when Marc Randolph left the company.
At the time, so was Netflix implemented the Profiles system on your website. In this way, each member of the family could access their favorite movies and series using one account.
Referral system on the Netflix website. (Netflix)Source: Netflix
Silicon Valley investors also poured $100 million into the startup, and as Netflix grew, Hastings hired key executives. That includes Ted Sarandoswho would go on to become Head of Content and Co-CEO.
Another interesting point of the story is that Netflix, before it imploded, was almost sold again for $50 million. This time, the negotiations were with a success story, who rejected the deal (good luck).
The arrival of streaming
ON service from streamingthat is, full remote viewing of movies (without waiting for mail) was introduced on Netflix in 2007. The novelty then only worked on computers with Internet Explorer and there was a limit of hours streaming free according to each customer’s subscription plans.
Through partnerships, the company has expanded its service to other electronics such as video games, Blu-ray players, TV set-top boxes, Smart TVs and smartphones. In the following years, Netflix reached Canada, Latin America, the Caribbean, Ireland, the United Kingdom, the Nordic countries, Austria, Belgium, France, Germany, Luxembourg and Switzerland, surpassing 50 million subscribers in 2014 — arrival in Brazil took place in 2011.
Out of curiosity, the first “Netflix Original” content This was stand up “Bill Burr: You people are all the same“, launched in 2012. Currently, investing in original content is a major focus of the platform, with exclusive news launches — and cancellations — fairly frequently.
The first “Netflix Original” production in history. (Netflix)Source: Netflix
Currently, Netflix is present in 190 countries and offers streaming in over 30 languages. In 2021, she announced the brand of 200 million signatures Worldwide. However, the company is going through a moment of crisis and lost users for the first time in 2022.