NETFLIX – HOW IT ALL STARTED

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Have you ever wondered how it all started? How the genius behind Netflix came up with the idea of DVD-by-mail service? It all started in 1997. Reed Hastings, founder and Ceo of Netflix, was charged a late fee of $40 on the film Apollo 13. Hastings was very frustrated and humiliated, and he thought this must be prevalent problem.

So he began researching the idea of DVD-by-mail. Very soon after, he launched his idea to the market. People were allowed to rent movies by mail. Unfortunately, this idea wasn’t very popular and didn’t take off, however, Hastings was not deterred.

In 1999 he had the idea to launch the subscription based model, of renting movies online and a lot of people started subscribing. The first trial was free, but the renewal rate for the following month was 80%. At that moment he knew that he had something. Nowadays Netflix is one of the biggest on-demand streaming media companies, with almost 30 million subscribers. They stream some of the most engaging, post modern material that is currently broadcast on any medium, such as House of Cards, Orange is the new Black, and Narcos, as seen in the video below:

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