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Source from WikiPedia
Netflix, Inc. is an American over-the-top content platform and production company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company’s primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.[9] In April 2021, Netflix had 208 million subscribers, including 74 million in the United States and Canada.[10][11] It is available worldwide except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions). The company has offices in Canada, France, Brazil, the Netherlands, India, Japan, South Korea, and the United Kingdom.[12] Netflix is a member of the Motion Picture Association (MPA), producing and distributing content from countries all over the globe.
Netflix’s initial business model included DVD sales and rental by mail, but Hastings abandoned the sales about a year after the company’s founding to focus on the initial DVD rental business.[9][13] Netflix expanded its business in 2007 with the introduction of streaming media while retaining the DVD and Blu-ray rental business. The company expanded internationally in 2010 with streaming available in Canada,[14] followed by Latin America and the Caribbean. Netflix entered the content-production industry in 2013, debuting its first series House of Cards.
Since 2012, Netflix has taken more of an active role as producer and distributor for both film and television series, and to that end, offers a variety of “Netflix Original” content through its online library.[15] By January 2016, Netflix services operated in more than 190 countries.[16] Netflix released an estimated 126 original series and films in 2016, more than any other network or cable channel.[17] As of December 31, 2020, the company had $16 billion in long term debt, which it accumulated to fund its growth.[8][18] The company is ranked 164th on the Fortune 500[19] and 284th on the Forbes Global 2000.[20] On July 10, 2020, Netflix became the largest entertainment/media company by market capitalization.[21] In 2021, Netflix was ranked as the 8th most trusted brand globally by Morning Consult.[22] During the 2010s decade, Netflix was the top-performing stock in the S&P 500 stock market index, with a total return of 3,693%.[23][24]
Membership fee, Blockbuster acquisition offer, growth start[edit]
Netflix introduced the monthly subscription concept in September 1999,[34] and then dropped the single-rental model in early 2000. Since that time (see Technical details of Netflix), the company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per-title rental fees.[35]
In 2000, when Netflix had just about 300,000 subscribers and relied on the US Postal Service for the delivery of DVDs, losses totaled $57 million and offered to be acquired by Blockbuster LLC for $50 million. It proposed that Netflix, which would be renamed as Blockbuster.com, would handle the online business, while Blockbuster would take care of the DVDs, making them less dependent on the US Postal Service. The offer was declined.[36][37][38][39]
While Netflix experienced fast growth in early 2001, both the dot-com bubble burst and the September 11 attacks occurred later that year, affecting the company badly and forcing Netflix to lay off one-third of its 120 employees. However, sales of DVD players finally took off as they became more affordable, selling for about $200 around Thanksgiving time, becoming one of that year’s most popular Christmas gifts. By early 2002, Netflix saw a huge increase in its subscription business
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