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Fearing competition from Amazon, Randolph at first thought the offer was fair but Hastings, who held a major 70% of the company, turned it down on the plane ride home. Randolph and Hastings met with Jeff Bezos, where offered to acquire Netflix for between $14 and $16 million. launched as the first DVD rental and sales site in 1998 with only 30 employees and 925 titles available-almost the entire catalogue of DVDs at the time. Hastings invested $2.5 million in cash from the proceeds of the Pure Atria sale into Netflix. Hastings is often quoted saying that he decided to start Netflix after being fined $40 at a Blockbuster store for being late to return a copy of Apollo 13, a claim since repudiated by Randolph. When the disc arrived intact, they decided to enter the $16 billion home-video sales and rental industry. When they heard about DVDs, first introduced in the United States on March 24, 1997, they tested the concept of selling or renting DVDs by mail by mailing a compact disc to Hastings's house in Santa Cruz. Hastings and Randolph considered and rejected selling and renting VHS tapes as too expensive to stock and too delicate to ship.

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Randolph admired and wanted to find a large category of portable items to sell over the Internet using a similar model. Patty McCord, later head of human resources at Netflix, was also in the carpool group. Hastings and Randolph came up with the idea for Netflix while carpooling between their homes in Santa Cruz, California and Pure Atria's headquarters in Sunnyvale. He was previously a co-founder of MicroWarehouse, a computer mail-order company as well as vice president of marketing for Borland International. Randolph had worked as a marketing director for Pure Atria after Pure Atria acquired a company where Randolph worked.

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Hastings, a computer scientist and mathematician, was a co-founder of Pure Atria, which was acquired by Rational Software Corporation in 1997 for $700 million, then the biggest acquisition in Silicon Valley history. On August 29, 1997, Marc Randolph and Reed Hastings founded Netflix in Scotts Valley, California. Reed Hastings, co-founder and the current chairman and CEO future revenue opportunities from possible syndication, merchandising, etc.) on big hits.

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Compared to other distributors, Netflix pays more for TV shows up front, but keeps more 'upside' (i.e.

The company has production hubs in Los Angeles, Albuquerque, London, Madrid, Vancouver and Toronto. It also operates international offices in Asia, Europe and Latin America including in Canada, France, Brazil, Netherlands, India, Italy, Japan, South Korea and the United Kingdom. Netflix is headquartered in Los Gatos, California, in Santa Clara County, with the two CEOs, Hastings and Ted Sarandos, split between Los Gatos and Los Angeles, respectively. During the 2010s, Netflix was the top-performing stock in the S&P 500 stock market index, with a total return of 3,693%. In 2021, Netflix was ranked as the eighth-most trusted brand globally by Morning Consult. It is the second largest entertainment/media company by market capitalization as of February 2022.

The company is ranked 115th on the Fortune 500 and 219th on the Forbes Global 2000. In January 2016, it expanded to an additional 130 countries and then operated in 190 countries.

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Netflix entered the content-production industry in 2013, debuting its first series House of Cards. The company expanded to Canada in 2010, followed by Latin America and the Caribbean. In 2007, Netflix introduced streaming media and video on demand. Netflix initially both sold and rented DVDs by mail, but the sales were eliminated within a year to focus on the DVD rental business. In the United States, the company provides DVD and Blu-ray rentals delivered individually via the United States Postal Service from regional warehouses. Netflix can be accessed via web browsers or via application software installed on smart TVs, set-top boxes connected to televisions, tablet computers, smartphones, digital media players, Blu-ray players, video game consoles and virtual reality headsets on the list of Netflix-compatible devices. Netflix has played a prominent role in independent film distribution, and it is a member of the Motion Picture Association (MPA). It is available worldwide aside from Mainland China, Syria, North Korea, and Russia. Founded on Augby Reed Hastings and Marc Randolph in Scotts Valley, California, it offers a film and television series library through distribution deals as well as its own productions, known as Netflix Originals.Īs of June 30, 2022, Netflix had 220.7 million subscribers worldwide, including 73.3 million in the United States and Canada, 73.0 million in Europe, the Middle East and Africa, 39.6 million in Latin America and 34.8 million in the Asia-Pacific region. is an American subscription streaming service and production company based in Los Gatos, California.