Founders: Reed Hastings, Marc Randolph
How It All Started:
Netflix was founded by two software engineers Reed Hastings & Marc Randolph in the year 1997. The purpose of this service is to offer online streaming of library movies and television programme. As of now, Netflix has more than 137 million total subscribers worldwide including 58.46 million in the United States.
Launching And History:
In the year 1997 on August 29, Netflix was founded in Scotts Valley, California by Marc Randolph & Reed Hastings. They both had come up with the idea for Netflix, though Randolph worked as a marketing director for Hasting’s company, Pure Atria. He was a co-founder of Micro Warehouse a computer mail order company and later, and has been employed for Borland International as vice president of marketing. Hastings, on the other hand, is a computer scientist and a big mathematician who sold his company Pure Atria to Rational Software Corporation for $700 in 1997.
To begin with, $2.5 million was invested by Hastings for starting up Netflix. At that time Randolph admired the fledgling e-commerce company Amazon and he wanted to find a large category of portable items to feel it over the internet using a similar model. VHS tapes were considered by them but then they rejected because it’s too expensive to stock and too delicate to ship also. And when they came to knew about DVD’s they tested the concept of selling or renting it by mail, by mailing a compact disc to Hasting’s house in Santa Cruz. They decided to take on the $16 billion home video sales and rental industry when the disc arrived.
On April 14, 1983, Netflix was launched as the world’s first online DVD rental store with only 30 employees and 925 titles available.
When the subscription started:
In 1999, Netflix introduced the monthly subscription, while they experienced fast growth in early 2001, and by 2002 Netflix saw a huge increase in their subscription business. It was in the year 2000 when Randolph retired from the company.
According to Global Internet Phenomena Report Netflix consumes 15% of all Internet bandwidth on a global level. Netflix introduces streaming which allows members to instantly watch television shows and movies on the personal computer in the year 2007. They partnered with consumer electronics companies to stream on the Xbox 360, Blu-ray disc players and TV set top boxes in the year 2009.
In 2016 Netflix was made available worldwide. It was eventually launched in 130 countries and brings their global services to 190 total countries around the world. On August 16, 2018, Netflix announced a 3 year overall deal with black-ish creator Kenya Barris. During this year Netflix also signed a five-year exclusive overseas with international author, Harlan Coben. Asa part of Viacom’s growth strategy Paramount Pictures signed a multi picture film deal with Netflix.
Netflix Marketing Strategy and Interesting reasons behind it’s grand success:
Well, that’s a big fact that Netflix wasn’t always as well known as it is now, But presently it has 62 million users worldwide. Yes, today Netflix must be feeling pretty good because of the amazing success. The concept which was planned 16 years ago as a way to rent DVDs from home now has changed the media consumption landscape. Nearly 40% decline in the TV rating was noticed, and this can be attributed to streaming services such as Netflix. The on-demand media streaming service garners 10 billion viewing hours per month, which is enough to leave TV networks shaking in their boots.
Netflix created shows like “House Of Cards” which has won 4 Emmy and 2 Golden Globes awards. A simple reason for the big success of Netflix is the shift in the technology. When people are spending much time on online then we must have to present a brand to them which uses the internet as a platform.
Netflix doesn’t believe to spend huge amounts of money on paid advertising. In fact, the company has decreased its ad budget. Netflix spent about $121 in 2014, whereas in 2012, the company spent $218. The CFO of Netflix David Wells said, “The Company has shifted to be “more content forward in our marketing, more digital in our marketing”, we’re getting smarter and more efficient about how we put those dollars to use”.
Netflix provides excellent quality original content which no one has been able to produce among their competitors and moreover the technology team working behind the website and the app is top notch. The experience is seamless from the Apple TV to the smart TV or PlayStation or Xbox and from the web to the iOS and Android apps.
This is what that made Netflix so popular and unique in a way which paved the way for the company to get ahead on the success path in its field.
As Netflix believes to releasing original content and getting brilliant reception for the same, it became a contender for the major awards. It became the first streaming service to earn nominations and eventually win a Primetime Emmy Award.
Netflix and Robin Wright (House Of Cards) made history at the Golden Globe Awards in the year 2014 by becoming the first streaming platform to be nominated and the first actress from a web television program to win the award. House Of Cards became the first online only web television programme to be nominated and its pilot episode, Chapter 1 was the first webisode of a television series to win an Emmy. Netflix was the first high profile streaming service to earn an Academy Award nomination. It has earned accolades with different peers groups and association including: Screen Actors Guild Awards, Critics’ Choice Television Awards, BAFTA Awards, Screen Actors Guild Awards and others
In the last few years Netflix got 432 nominations and have won 72 awards.
Netflix is the most positive online movie streaming service provider that has established itself as an industry leader in quite a short span. With their amazing marketing strategy they have ensured to keep their customers stay inside and be able to watch any Movie or TV they want to, while relaxing on their favorite couch.