The top video streaming service, Netflix, started by shipping DVDs to customers by mail.
How did it achieve such staggering success?
It has been a long road of trial and error, luck, and perfect timing.
According to Marc Randolph, this story is false and was just a marketing gag.
To all of them, Reed’s reply was simply, “that will never work.”
Then, Marc heard of a hot new product invented in Japan called the DVD.
When the CD arrived intact, they knew they had found their ticket to e-commerce glory.
Hastings became Chairman with 70% ownership, and Marc Randolph, the CEO and a minority owner.
The rest, as they say, is history.
Here are a few milestones that made Netflix the streaming giant we know and love.
August 29, 1997: Netflix is registered in Scotts Valley, California.
April 14, 1998: The website launches as Netflix at 9 am.
The video library has approximately 900 titles.
Marc orders the movie Casino as a test, and it works.
At the end of the first day, they booked 137 orders.
Netflix’s video library expands to 3,100 titles.
During the meeting, John turns him down and laughs at Reed and the Netflix team.
2002: Netflix goes public in May.
The IPO raises $82.1 million and values Netflix at $309.7 million.
Reed has 500,000 shares, and Marc has 166,000 shares.
2003: Marc Randolph leaves Netflix and sells his shares.
2006: Netflix finally becomes profitable, generating more than $80 million.
The first trial is in Canada.
2010: Netflix changes its focus to streaming and introduces it to the United States.
Reed tells investors, “three years ago, we were a DVD by-mail company that offered some streaming.
We are now a streaming company which also offers DVD by mail.”
Blockbuster files for bankruptcy.
2012: Netflix starts making original shows.
Its first show is Lilyhammer, followed by House of Cards in 2013.
2015: Netflix is present in 50 countries.
Notable exceptions are North Korea, Syria, China, and Iran.
The company introduces mobile games, allowing users toplay games on Netflix.
With Netflix, one can be a superstar in their backyard and export their content to the world.
These competitors invest heavily in different ways to entertain their audiences.
