Netflix

The origin of Netflix was a long and hard road. It all started when two employees, Reed Hastings and Marc Randolph, were about to be laid off due to a merger. These two carpooled together and dreamed of making the next Amazon. They tried all sorts of things, from personalized dog food, shampoo, surfboards, and customizable baseball bats to building an e-commerce website. Next, they tried selling VHS tapes but realized that couldn't happen because of the size of the tapes and how fragile they were. Finally, due to the rise in DVDs, they created Netflix, a company derived from a play on the words "net" from the internet and "flix" from a flick or movie.

Netflix launched in 1997 as an online DVD rental site, where people went online to order a movie and a few days later received a DVD in the mail. However, Netflix's most significant change would happen in 1999, two years after the launch, with a subscriber-based model. This new model allowed people to rent unlimited movies for one monthly price. At the time, a subscriber-based model was unheard of and truly changed the way viewers consumed media. Then, in 2000, Netflix added another feature that gave each account user personalized movie recommendations based on other people's ratings.

Netflix went public in 2002, and it was only $15 a share. Today, as of March 28, 2022, that share is $378.54. In 2003, Netflix hit one million subscribers. Over the next three years, it kept growing and hit five million subscribers. In 2007, Netflix changed the way we consume media again by introducing a streaming service. Through this service, people can sit at home and watch movies without ordering a CD. Netflix's next step was to go abroad, adding Canada in 2010, and by 2016, it would be in more than 190 countries and territories. In addition, it would be available in 21 different languages. Today, Netflix is the powerhouse of streaming with hit shows like Tiger King, Squid Game, and The Queen's Gambit.

Through its ever-evolving model, Netflix's effect on the world has been significant, with the subscriber base and streaming service being the most significant game-changers. These changes have created opportunities for other companies to follow this success, with companies like Apple making Apple TV, Amazon making Prime Video, and Disney making Disney+. This media consumption only multiplied with COVID-19, where these companies excelled due to how easy it is for someone to watch thousands of movies without leaving their house. Another outcome of this surge is the "Netflix Effect," where people sit down and lose track of time watching too much Netflix. With its long catalog of listings, viewers binge-watch or watch many hours of a show to finish it. This ability to stream directing into the home has led to people spending more time watching shows and being entertained by the media industry.

Netflix is a company all about risk. It took the gamble to start a company that would compete against Blockbusters when Blockbuster was the go-to place for movies. Likewise, it would take a risk with a subscriber-based model, but because Netflix is willing to take risks, it has succeeded and will continue to succeed.