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As all of you are familiar with NetFlix as it is the world’s largest online movies and series streaming platform. Making annual income of about $1Billinon.It is one of the largely and heavily topped streaming platforms having 203 million paid subscribers all around the world. To start this kind of platform lot of effort, hard work, hardships have come across.
NetFlix Founders
NetFlix was started by two big and welly reputed persons called Reed Hastings and Marc Randolph on 1997 August 29 in Scotts Valley, California.
How Netflix started
As all of us aware of the fact all the startups as one or the other reasons to get build like solving a particular problem, to make fame and name, due to some live incidents and many more.
Reed Hasting founder of Netflix once borrowed a CD for rent from Blockbuster company and later he was charged a fine of $40 because of late submission.
This made him so embarrassed that even hesitated to tell his wife and further triggered him to think over the problem on that CD rental space and finally had a talk with his co-founder Mark and founded the platform called Netflix.
Early days of Netflix
In the initial days, Netflix was an online DVD rental platform where it delivered CDs on a monthly subscription basis. Netflix has comprised 30 employees with 925 titles (entertainment shows) and with an investment of 2.5 million by Reed Hasting. They were partnered with the US postal system for delivering the DVD to the consumers.
Difficulties times
At the times when Netflix has gained 3lakh of subscribers, the company was at a loss of $57 million. So it was a challenging moment for the founders and they too understood that to manage and function media industry there should be a lot of money but at that time Netflix was also not booming up, so fundings option were also not opened. So the Netflix company offered to be acquired at $50 million to Blockbuster company but the offer was rejected.
Finally, Netflix went public offering(IPO) 5.5 million shares at the rate of US$15.00 per share.
Good Times of Netflix
By making affordable prices for DVD they saw there was a slight increase in their revenue and because of their cheaper rate sales became high and during the financial year of 2003, the company achieved to be in profit zone and made a profit of US$6.5 million.
Netflix also sold 1.9 lakhs of discs per day
Netflix turned towards the streaming platform
As there was internet penetration was going on Netflix in 2007 started to build its website and provide the user to stream the movies online. As there was a great craze and trend on online streaming platforms so Netflix gained momentum there and continued to provide as many movies and shows as they can.
In 2009 Netflix had nearly 12000 shows. Even they also inculcated the video suggestion system where they showed up right kind of movies to the targeted audiences based on their searches.
Through their VPN network audience from all over the world can also view shows even though the countries had restricted them.
As the year pass, Netflix as becoming popular, and even it had expanded to more than 150 countries. Netflix also started its own production house and produce its content called “NETFLIX ORIGINALS“.
In this way Netflix has evolved, there were so many hardships in the middle of the journey but founders fought and win the race. Now Netflix has created a hub in almost all countries. There are a lot of competitors to give fightback to Netflix but it is far behind.