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Netflix - Wikipedia. Netflix, Inc. Type of business. Public. Traded as. Founded. August 2. Scotts Valley, California, United States. Headquarters. 10. Winchester Circle, Los Gatos, California, United States.

Area served. 19. 0 countries[2]Owner. Reed Hastings (1. Founder(s)Key people. Industry. Entertainment. Products. Services. Revenue. US$8. 8. Operating income.

US$3. 80 million (2. Net income. US$1. Total assets. US$1. Total equity. US$2. Employees. 3,5. 00 (2. Divisions. Domestic Streaming. International Streaming.

Domestic DVD[5]Subsidiaries. Netflix US & Canada. Netflix International. Netflix Streaming Services. Netflix Studios. DVD. Watch Gettin` It Online Hulu.

Millarworld. Websitewww. Alexa rank 3. 2 (Global, October 2. Registration. Required. Users. 10. 9. 2. 5 million worldwide[7]Current status.

Active. Netflix is an American entertainment company founded by Reed Hastings and Marc Randolph on August 2. Scotts Valley, California.[8] It specializes in and providesstreaming media and video- on- demand online and DVD by mail. In 2. 01. 3, Netflix expanded into film and television production, as well as online distribution. The company is headquartered in Los Gatos, California. Netflix's initial business model included DVD sales and rental, although Hastings jettisoned DVD sales about a year after Netflix's founding to focus on the DVD rental by mail business.[8][9] In 2. Netflix expanded its business with the introduction of streaming media, while retaining the DVD and Blu- ray rental service. The company expanded internationally, with streaming made available to Canada in 2.

January 2. 01. 6, Netflix services operated in over 1. Netflix entered the content- production industry in 2. House of Cards. It has greatly expanded the production of both film and television series since then, offering "Netflix Original" content through its online library of films and television.[1. Netflix released an estimated 1. As of October 2. 01. Netflix had 1. 09. United States.[7] Their efforts to produce new content, secure the rights for additional content, and diversify through 1.

September, 2. 01. Netflix's headquarters are in 1. Winchester Circle, Los Gatos, California, USA.

They also have other offices in the Netherlands, Brazil, India, Japan and Korea.[1. History[edit]Founding and establishment[edit]Netflix was founded on August 2. Scotts Valley, California, by Marc Randolph[1. Reed Hastings. Randolph worked as marketing director for Hastings' company, Pure Atria Corporation. Randolph was a co- founder of Micro.

Warehouse, a computer mail order company, and was later employed by Borland International as vice president of marketing. Hastings, a computer scientist and mathematician, sold Pure Atria to Rational Software Corporation in 1. Silicon Valley history. He and Randolph came up with the idea for Netflix while commuting between their homes in Santa Cruz and Pure Atria's headquarters in Sunnyvale while waiting for government regulators to approve the merger.[1. Hastings invested $2.

Netflix.[1. 9][9] Randolph admired the fledgling e- commerce company Amazon and wanted to find a large category of portable items to sell over the internet using a similar model. He and Hastings considered and rejected VHS tapes as too expensive to stock and too delicate to ship. When they heard about DVDs, which were available in only a few markets in 1. DVDs by mail by mailing a compact disc to Hastings' house in Santa Cruz. When the disc arrived intact, they decided to take on the $1. Hastings is often quoted saying that he decided to start Netflix after being fined $4.

Blockbuster store for being late to return a copy of Apollo 1. Randolph designed to explain the company's business model and motivation.[1. Netflix was launched on April 1.

DVDs available through the pay- per- rent model with rates and due dates that were similar to its bricks- and- mortar rival, Blockbuster.[2. Membership fee, Blockbuster acquisition offer, growth start[edit]Netflix introduced the monthly subscription concept in September 1.

Since that time, 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.[2. First logo, used from 1.

Netflix logo used from 2. In 2. 00. 0, Netflix offered to be acquired by Blockbuster for $5. Netflix initiated an initial public offering (IPO) on May 2. US$1. 5. 0. 0 per share. On June 1. 4, 2. 00. After incurring substantial losses during its first few years, Netflix posted its first profit during fiscal year 2.

US$6. 5 million profit on revenues of US$2. In 2. 00. 5, 3. 5,0. Netflix shipped 1 million DVDs out every day.[2.

Randolph, a dominant producer and board member for Netflix, retired from the company in 2. Video on demand introduction, declining DVD sales, global expansion[edit]Netflix developed and maintains an extensive personalized video- recommendation system based on ratings and reviews by its customers. On October 1, 2. 00. Netflix offered a $1,0.

Cinematch, at predicting customer ratings by more than 1. In February 2. 00. DVD,[2. 7] and began to move away from its original core business model of DVDs, by introducing video on demand via the Internet. Netflix grew as DVD sales fell from 2. In January 2. 01. Netflix reported that it had added two million United States customers during the fourth quarter of 2.

United States streaming customers, and 2. In addition, revenue was up 8% to $9. That number increased to 3.

United States) in April 2. As of September 2. Netflix reported its total of global streaming subscribers at 4. United States).[3. By the fourth quarter of 2. Netflix reported 3. United States subscribers.[3.

By September 2. 01. Netflix had subscribers in over 4. Early Netflix Original content[edit]Netflix has played a prominent role in independent film distribution. Through its division Red Envelope Entertainment, Netflix licensed and distributed independent films such as Born into Brothels and Sherrybaby.

As of late 2. 00. Red Envelope Entertainment also expanded into producing original content with filmmakers such as John Waters.[3. Netflix closed Red Envelope Entertainment in 2.

Entertainment dominance and presence and continued growth[edit]Netflix has been one of the most successful dot- com ventures. In September 2. 00. The New York Times reported that, at the time, Netflix mailed about 1. The company's published subscriber count increased from one million in the fourth quarter of 2. March 2. 01. 0. Netflix's early growth was fueled by the fast spread of DVD players in households; in 2.

United States homes had a DVD player. Netflix capitalized on the success of the DVD and its rapid expansion into United States homes, integrating the potential of the Internet and e- commerce to provide services and catalogs that bricks- and- mortar retailers could not compete with. Netflix also operates an online affiliate program which has helped to build online sales for DVD rentals. The company offers unlimited vacation time for salaried workers and allows employees to take any amount of their paychecks in stock options.[4.

By 2. 01. 0, Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest- growing customer of the United States Postal Service's first- class service to the largest source of Internet streaming traffic in North America in the evening. In November, it began offering a standalone streaming service separate from DVD rentals.[4. On September 1. 8, 2. Netflix announced its intentions to rebrand and restructure its DVD home media rental service as an independent subsidiary called Qwikster, separating DVD rental and streaming services.[4. Andy Rendich, a 1. Netflix veteran, was to be CEO of Qwikster.

Qwikster would carry video games whereas Netflix did not.[4. However, in October 2. Netflix announced that it would retain its DVD service under the name Netflix and would not, in fact, create Qwikster for that purpose.[4. In April 2. 01. 1, Netflix had over 2.

United States and over 2. But on October 2. Netflix announced 8.