A company to rent DVDs by mailNetflix was founded by Reed Hastings and Marc Randolph back in 1997. The name combines net for „internet“ and flix for „flicks“ which is a synonym for „movie“. The name perfectly fits Netflix’ current streaming concept. However, at the very beginning, the concept was different. The original idea was to rent out DVDs and ship them by mail which was not a bad idea since DVDs were new at that time and – compared to VHS – the compact size of the medium made mailing much easier. The DVD rental and sales site netflix.com launched in 1998 and offered a subscription-based model for unlimited DVD rentals one year later. Netflix hit 1 million members until 2003 and 5 million members until 2006.
The upswing of the companyIn 2000, Netflix sought to be acquired by Blockbuster – a giant company worth 6 billion USD at that time. The idea was to sell Neflix for 50 million USD and to allow Netflix to run the Blockbuster website as an online rental service for movies. For Bluckbuster, the decision to abandon the deal couldn’t be worse. Netflix made it to a multi-billion dollar company, reinventing and dominating the movies industry – whereby Blockbuster filed for bankruptcy after some time. Hastings published his book „No Rules Rules: Netflix and the Culture of Reinvention“ together with his co-author Erin Meyer in 2020. The book describes the company’s road to success by relying on a modern company culture. Just as many other Silicon Valley startups, Netflix was hit hard by the dot-com bubble burst in 2001. The streaming provider survived – but had to lay off a third of its staff. The turnaround was driven by seven aspects of the company’s culture leading to high efficiency and long-term business success.
A corporate culture making Netflix a great place to work
Business Model and Outlook
Netflix SWOT Analysis
Netflix CEO’s: Reed Hastings and Ted Sarandos
Netflix FY 2020 – roovestor company score
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