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Netflix is ​​an American entertainment company founded by Reed Hastings and Mark Randolph, a provider of movies and TV shows based on streaming multimedia. It was founded on August 29, 1997. Headquartered in Los Gatos, California.

Netflix was founded on August 29, 1997 in the small town of Scotts Valley in California by Mark Randolph and Reed Hastings. Randolph served as marketing director for Reed Hastings, Pure Atria Corporation. Hastings sold Pure Atria Rational Software Corporation in 1997 for $ 700 million. By the way, at that time it was the most expensive such deal. He and Randolph came up with the idea of ​​Netflix while traveling between their homes in Santa Cruz and Pure Atria's headquarters.

Hastings invested $ 2.5 million in Netflix startup capital. Randolph admired the young Amazon company and wanted to find an extensive category of small products for sale over the Internet using a similar model. He and Hastings considered and rejected the VHS video tapes as being too expensive to store and too inconvenient for delivery. When they learned about DVDs that were only available in a few markets in 1997, they tested the concept of selling or renting DVDs by mail, sending the CD to Hastings' house. When the disc reached the addressee intact, they decided to start renting and selling DVDs.

Hastings often says that he decided to open Netflix after he was fined $ 40 at the Blockbuster store for being late, failing to return a copy of the Apollo 13 movie in time, but this is a made-up story.

Netflix began work on April 14, 1998 with 30 employees and 925 DVDs available through a pay-as-you-go model.

Netflix introduced the concept of monthly subscription in September 1999, and then abandoned the one-time rental model in early 2000.

In 2000, Netflix wanted to buy its competitor, Blockbuster, for $ 50 million, but the offer was rejected. Netflix held an initial public offering (IPO) on May 29, 2002, putting up for sale 5.5 million ordinary shares at a price of $ 15 per share.

On June 14, 2002, the company sold an additional 825,000 ordinary shares at the same price. After the first significant loss, Netflix posted its first profit in fiscal year 2003.

In 2004, Mark Randolph, one of the founders of the company and a member of its board, leaves the company.

By 2005, 35,000 films were available in the company's catalog, and Netflix sent 1 million DVDs every day.

Netflix has developed an extensive personalized video advertising system based on ratings and customer reviews. On October 1, 2006, Netflix introduced the first developer of the $ 1,000,000 video ad algorithm, which could outperform the then existing Cinematch algorithm, which predicts customer ratings by more than 10%.

In February 2007, the company shipped its billionth DVD and began moving away from its original core business DVD model, starting to deliver on-demand video over the Internet.

In March 2011, Netflix began producing original content for its library, starting with the political drama Card House, which debuted in February 2013. The series was produced by David Fincher, starring Kevin Spacey.

The comedy-drama television series about life in the women's prison - “Orange is the hit of the season” - debuted in streaming service in July 2013. Netflix executives said this series is Netflix's most popular original series.

As of September 2013, for a report for the third quarter of this year, Netflix reported a total number of subscribers of 40.4 million people (31.2 million in the United States). By the fourth quarter of 2013, Netflix reported 33.1 million US subscribers. By September 2014, Netflix had subscribers in more than 40 countries.

In November 2013, Netflix and Marvel Television announced a contract for the production of 5 seasons of the series dedicated to Marvel superheroes - Daredevil, Jessica Jones, Iron Fist and Luke Cage, as well as the Defenders mini-series, uniting all these heroes.

In April 2014, Netflix approached 50 million subscribers, which accounted for 32.3% of the US video streaming market. By this time, Netflix has been operating in 41 countries around the world. In June 2014, Netflix introduced a global rebranding: a new logo that uses a modern font and a new website user interface. The change was controversial; some liked the new minimalist design, while others felt more comfortable with the old interface.

In July 2014, Netflix announced that it had crossed the line of 50 million subscribers, of which 36 million were users from the United States.

In January 2016, Netflix announced that it would start blocking virtual private networks or VPNs. At the same time, Netflix reported 74.8 million subscribers and predicted that by March 2016 it would add more than 6 million subscribers. By the end of 2016, Netflix added a feature that allows customers to download and play their favorite movies and shows offline.

In February 2017, Netflix signed a contract with BMG Rights Management, in which BMG will control rights outside the U.S. to music related to Netflix's original content.

On April 17, 2017, it was reported that Netflix was approaching 100 million subscribers. On April 25, 2017, Netflix announced that it had received a deal in China with Baidu's iQiyi streaming service, which will allow Netflix to distribute its content in China.

On August 7, 2017, Netflix acquired Millarworld, the comic book publishing company of Mill Millar.

On March 6, 2019, Netflix acquired the rights to film the adaptation of Gabriel Garcia Marquez’s novel, One Hundred Years of Solitude. The work will be transferred to the screen for the first time.