The company Netflix started around the same time as other movie renting companies. Its business model was different from companies like Blockbuster and Hollywood because Netflix wanted to give people the ability to rent a movie without the person leaving the house and that’s why nearly everyone in the US knows about Netflix but barely remembers Blockbuster and Hollywood. Netflix started in the late 1990’s. People rented movies by sending a request in the mail then getting the movie in the mail then once you were done mailing it back, all in the comfort of their home.
The Decline of DVDs
Netflix executives started to notices the decline in DVD sales and needed to think of a way to increase their sales which would be hard because almost all their sales came from DVD rental. They wanted to keep their model of people staying home to use their service. This in when they came up with the idea to put their movies on the internet as well keeping the ability to mail in a rental. In 2008 Netflix announced a partnership with Starz to bring over 2000 shows and movies to a website. It was not until 2011 that Netflix offered two separate subscriptions; one for mail in rentals and one for online. It was at this time that the online sales began to rises drastically from the DVD rentals.
Movies at the Click of a Button
Netflix started cutting deals with TV producers where there was a button put on the remote the read “NETFLIX”. All you had to do to watch netflix was click this button then choose your movie or show. This simplicity is what made Netflix different from the other show rental companies. This creativity is why Netflix is one of the most popular companies in the USA.
It was from this simplicity that made Netflix the company it is today. They always stuck to their plan of having their consumers never leave their house. Another innovation they have is the shows they produce. Before the first show they produced, House of Cards, Netflix relied on other companies for their products (TV Shows and Movies). They decided to produce their own shows this disconnects the middle man so the reap all the profits from the shows and movies. Now they do not have to pay as much to other companies so more of the money they earn goes straight to them.
Netflix and Chill
Netflix, through innovation and creativity, is now worth 61.1 billion dollars, earning it a spot on Forbes Top 200 Growth Champions as of May 2017. They have received many awards for the movies and and shows they made and for the buisses ideas and innovation.