Overview

Netflix, Inc. is a global entertainment company that provides a subscription-based, on-demand video streaming service. Its primary function is to allow members to stream a vast library of TV shows, movies, documentaries, and mobile games over the internet to a wide range of internet-connected devices, such as smart TVs, smartphones, gaming consoles, and computers. A key feature of the service is a sophisticated recommendation algorithm that uses machine learning and data analytics to personalize content suggestions for each user, which helps to improve engagement and user satisfaction.

Founded in 1997 by Reed Hastings and Marc Randolph in California, Netflix began as a mail-order DVD rental service. For a flat monthly fee, subscribers could create an online queue of movies and receive the discs by mail with no due dates or late fees, a model that directly challenged and eventually outcompeted traditional video rental stores like Blockbuster. In 2007, recognizing improvements in internet speeds and bandwidth, Netflix launched its streaming service, which fundamentally changed how people consumed content. This digital transformation became the company's primary focus, leading to the discontinuation of the DVD-by-mail service in September 2023.

Netflix's business model is primarily built on recurring subscription revenue from millions of members in over 190 countries. The company offers tiered plans (some with ads, some ad-free) to cater to different user needs and preferences. A significant part of its strategy involves heavy investment in the production of original and exclusive content, such as Stranger Things and The Crown, which helps it attract and retain subscribers amidst intense competition from other streaming services like Disney+ and Amazon Prime. By leveraging data-driven content decisions and a direct-to-consumer distribution model, Netflix maintains control over the user experience and has positioned itself as a major global media powerhouse.