As of April 2020, Netflix had over 182 million paid subscriptions worldwide, including 69 million in the United States.
Netflix is an American media services provider and production company headquartered in Los Gatos, California, founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. The company’s primary business is its subscription-based streaming service which offers online streaming of a library of films and television programs, including those produced in-house. As of April 2020, Netflix had over 182 million paid subscriptions worldwide, including 69 million in the United States.It is available worldwide except in the following: Mainland China (due to local restrictions), Iran, Syria, North Korea, and Crimea (due to U.S. sanctions). The company also has offices in Brazil, the Netherlands, India, Japan, and South Korea. Netflix is a member of the Motion Picture Association of America (MPAA). Today, the company produces and distributes content from countries all over the globe.
Netflix launched as the world’s first online DVD-rental store, with only 30 employees and 925 titles available – almost the entire catalogue of DVDs at the time,- using the pay-per-rent model, with rates and due dates similar to those of its bricks-and-mortar competitor, Blockbuster.
In 2000, when Netflix had just about 300,000 subscribers and relied on the U.S. Postal Service for the delivery of their DVDs, they were losing money and offered to be acquired by Blockbuster for $50 million. They proposed that Netflix, which would be renamed as Blockbuster.com, would handle the online business, while Blockbuster would take care of the DVDs, making them less dependent on the U.S. Postal Service
Netflix initiated an initial public offering (IPO) on May 29, 2002, selling 5.5 million shares of common stock at the price of US$15.00 per share.
On June 14, 2002, the company sold an additional 825,000 shares of common stock at the same price. After incurring substantial losses during its first few years, Netflix posted its first profit during the fiscal year 2003, earning US$6.5 million profit on revenues of US$272 million. In 2005, 35,000 different films were available, and Netflix shipped 1 million DVDs out every day. (wiki)
Current Chairman and CEO
Reed Hastings, co-founder and the current chairman and CEO
In a reversal, Netflix announced in October that its streaming and DVD-rental plans would remain branded together.
In January 2018, Netflix named Spencer Neumann as the new CFO.
In January 2020, Netflix opened a new office in Paris with 40 employees.
This office building at 100 Winchester Circle in Los Gatos (wiki image).
Netflix also began to acquire distribution rights to third-party films in 2017 into 2018. One of its first acquisitions was the film The Cloverfield Paradox, which Netflix had acquired from Paramount Pictures in early 2018, and launched on its service on February 4, 2018, shortly after airing its first trailer during Super Bowl LII. While the film was critically panned, analysts believed that Netflix’s purchase of the film helped to make the film instantly profitable for Paramount compared to a more traditional theatrical release, while Netflix benefited from the surprise reveal. Other films acquired by Netflix include international distribution for Paramount’s Annihilation, worldwide distribution of Universal’s Extinction and Warner Bros.’ Mowgli: Legend of the Jungle. In February 2020, after Mattel Television ended the deal to broadcast the British television series Thomas & Friends on Nickelodeon in the US, they made a deal to stream the show in March 2020, making it the first time in years that Thomas content was available on Netflix. As of March 2020, Netflix offered just under 3,000 film titles for streaming on its U.S. service. This does not include multi-episode titles (series).
In 2007, Netflix recruited one of the early DVR business pioneers Anthony Wood to build a “Netflix Player” that would allow streaming content to be played directly on a television set rather than a PC or laptop.While the player was initially developed at Netflix, Reed Hastings eventually shut down the project to help encourage other hardware manufacturers to include built-in Netflix support. Wood eventually launched the player as the first device from Roku Inc. which is now primarily known for its streaming video players, with Netflix serving as a primary investor in the new company.
Netflix sought and was approved for membership into the Motion Picture Association of America (MPAA) on January 22, 2019, as the first streaming service to become a member of the association.
In April 2019, it was announced that Netflix was seeking to purchase Grauman’s Egyptian Theatre from the American Cinematheque to use as a special events venue, Later on May 29, 2020, it was announced that Netflix will aquire the theater and invests in some renovations of it.
In May 2019, Netflix acquired the StoryBots children’s media franchise as part of a commitment to expand its educational content.
On May 9, 2019, Netflix made a deal with Dark Horse Entertainment to make television series and films based on comics from Dark Horse Comics.
In July 2019, Netflix announced that it would be opening a hub at Shepperton Studios as part of a deal with Pinewood Group.
In early August 2019, Netflix negotiated an exclusive multi-year film and television deal with Game of Thrones creators/showrunners David Benioff and D.B. Weiss reportedly worth US$200 million.As a result of their commitments to Netflix, Benioff and Weiss withdrew from an earlier agreement with Disney to write and produce a Star Wars film series.
On November 13, 2019, Netflix and Nickelodeon entered into a multi-year content production agreement to produce several original animated feature films and television series based on Nickelodeon’s library of characters, in order to compete with Disney’s new streaming service Disney+, which had launched the day before. This agreement expanded on their existing relationship, in which new specials based on the past Nickelodeon series Invader Zim and Rocko’s Modern Life (Invader Zim: Enter the Florpus and Rocko’s Modern Life: Static Cling respectively) were released by Netflix. New projects planned under the team-up include a music project featuring Squidward Tentacles from the animated television series SpongeBob SquarePants, and films based on The Loud House and Rise of the Teenage Mutant Ninja Turtles.
On February 25, 2020, Netflix formed partnerships with six Japanese creators to produce an original Japanese anime project. This partnership include manga creator group CLAMP, mangaka Shin Kibayashi, mangaka Yasuo Ohtagaki, novelist and film director Otsuichi, novelist Tow Ubutaka, and manga creator Mari Yamazaki.
During the COVID-19 lockdown in 2020, Netflix acquired 16 million new subscribers, which almost doubles the result of the final months of 2019.
On April 7, 2020, Chernin Entertainment made a multi-year first look deal with Netflix to make films.