Do you love curling up on the couch at the end of a busy day and chilling out with Netflix?
This popular streaming service is largely responsible for changing the way that we view movies and other content.
Around half of the people in North America have a Netflix account, and it is also popular in most countries around the world.
However, there was a time when people doubted that Netflix would become the huge success that it is today. The company boasts a rich and interesting history that is laced with intrigue.
So, let’s take an in-depth look at exactly ‘who owns Netflix?’ and why it is so successful.
The History Of Netflix
Back in 1995, entrepreneur Reed Hastings sold his first business, Pure Software. Hastings had always been in the technology industry and was searching for a new project. The sale of his business gave him the financial freedom to start a new venture.
Legend has it that Hastings had the idea for Netflix after paying a $40 late fee for a video he had lost. He came up with the idea of paying a monthly subscription fee to rent as many movies as you want. He teamed up with Marc Randolph shortly afterward, and the pair established Netflix in Scotts Valley, California.
Originally a DVD rental company!
Netflix started as a mail-order DVD rental company. At the time, there were several video and DVD rental stores in every town and city. In the USA, most of these outlets were owned by Blockbuster, while there were also plenty of independent businesses.
For many people, going to these stores, picking out a movie and some snacks to go with it was a special event. This was a particularly popular activity among families and couples. Compared to the vibrancy and excitement of these stores, renting DVDs from Netflix paled in comparison.
New CEO opens doors…
Co-Founder Marc Randolph was the CEO of Netflix until 2002. Not much is known about his reason for leaving, other than a comment that the company outgrew his skills. As a result, Reed Hastings took over as the CEO of Netflix.
The Launch Of The Streaming Service
The Netflix streaming service was launched in 2007. It took a while for the idea to catch on, especially because the internet was not fully up to spread in some parts of the world. However, the ability to skip rental and late fees altogether eventually made the streaming service a hit.
Over the past decade, Netflix’s streaming service has become extremely popular and makes around $2 billion each year. Part of the reason for the success of Netflix is that the streaming service offers ad-free entertainment. The ability to choose when and what you watch meshes with the lifestyle of many people.
200 million users…
Today, there are nearly 200 million Netflix users around the world. The company has helped Reed Hastings to amass a reported net worth of $5.2 billion.
The Fall of Blockbusters
The prominence of cable stations and the internet meant that Blockbusters started to decline quickly. More and more people were choosing to watch movies and content online and in other ways. However, Blockbuster’s CEO John Antioco had a chance to save the company, which he ultimately let slip through his fingers.
As Blockbusters started to go into decline, Reed Hastings and Marc Randolph requested a meeting with the CEO. After months of requests, John Antico finally granted their request. Unfortunately, the time that he set for the meeting was nearly impossible as it involved a 12-hour journey.
Netflix has no future?
Randolph and Hastings managed to catch a 05:00 flight to make the meeting on time. After outlining the benefits of their online business model for Blockbusters, John Antico announced that the idea had no future. In fact, he believed that Netflix would be more of a liability than an asset to Blockbusters.
When Reed Hastings and Marc Randolph told Antico they wanted $50 million to launch Netflix online, he simply laughed. Ironically, the Netflix streaming service directly led to the closure of Blockbusters’ physical stores. Today, only one Blockbusters store remains, which can be found in Oregon and is independently operated.
A missed opportunity…
While the Blockbusters company is still alive and well, it has been forced to change how it does business. Ironically, most of the company’s business has now moved to the online realm. If John Antioco had taken the deal when he had the chance, the company would still be thriving today.
The Death Of Cable Services
It was not just Blockbusters that took a hit after the Netflix streaming service rose in popularity. Around this time, a lot of people were complaining about the rising price of cable services. This irritation was compounded by the increased number of adverts that they were forced to sit through.
The advertising situation got so bad that shows and movies were being interrupted every fifteen minutes by adverts. The ad breaks got longer and longer and could run for fifteen or even twenty minutes at a time. Many people started to feel that they were paying their cable bill just to watch adverts.
No more adverts!!!
Therefore, when Netflix announced a streaming service that was completely free from ads, many people were interested. In addition, the price for the Netflix streaming service was a fraction of most cable services. Being able to choose a viewing schedule also made Netflix extremely appealing to many viewers.
What Are Netflix Originals?
Not only does Netflix offer a lot of viewing content, but it is also very high quality. Movies, shows, documentaries, comedy, and a wide range of other choices can be found in one place. The content is arranged according to category, and the search bar helps to make it easy to find.
In addition, Netflix regularly creates original shows that cannot be found anywhere else. These shows have become extremely popular and have even won awards. Some of the most popular shows that can only be found on Netflix include Little Witch Academia, Stranger Things, Grace and Frankie, and Castlevania.
Variety of content…
There are currently around 200 million Netflix customers around the world. Despite increasing competition, Netflix remains the most popular streaming service in the world. A large part of the reason for this is the numerous original shows and movies the company has created.
How Netflix Is Changing Entertainment?
As well as changing how people review entertainment, Netflix is also changing how entertainment is made. While shows and movies are traditionally filmed in California, the costs of living and working there are very high. Netflix has reduced costs considerably by moving its productions to New Mexico.
Stranger Things was one of the first Netflix originals to be filmed in the new Albuquerque location. In addition to saving Netflix a lot of money, the move helped the state of Albuquerque to thrive. It immediately brought a lot of jobs and income to the area while simultaneously boosting tourism.
Creating jobs and boosting businesses…
The new Netflix studio is also dramatically boosting business for local vendors. A large number of local businesses can be found close to the studio. During breaks, studio employees can visit these businesses and are sure to find whatever they need.
So, Who Owns Netflix?
To this day, co-founder Reed Hastings remains the CEO of Netflix. It is a public company that is listed on the Nasdaq Stock Market. As a result, Netflix is currently owned by many people.
The three largest shareholders of Netflix are Reed Hastings, currently chief content officer Ted Sarandos, and former chief product officer Neil Hunt. In addition, around 78% of the company’s shares are held by institutions. The largest institution holding is owned by the Vanguard Group, which is a mutual fund company based in Pennsylvania.
More Netflix Knowledge And Merchandise
For more Netflix knowledge, we’ve found these great reads such as the No Rules Rules: Netflix and the Culture of Reinvention, with the Summary & Analysis of No Rules Rules: NETFLIX and the Culture of Reinvention. as well as the That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea available online in 2023.
If you have a birthday coming up, how about some awesome Netflix merchandise for all ages. We found the Decorative Cushion Cover My Neck, Back, Netflix and Snacks, and the Oh, Susannah Just One More Episode Red Netflix Pillow.
We can’t forget about the “Stranger Things” fans out there with the Trivial Pursuit Netflix’s Stranger Things Back to The 80s Edition: Adult and Teen Party Board Game, a Netflix Stranger Things Eleven I Dump Your Ass Portrait T-Shirt, Taste Beauty Stranger Things 6 Piece Lip Gloss Set, a Netflix Stranger Things Simple Red Logo T-Shirt, the Hasbro Gaming Stranger Things Palace Arcade Handheld Electronic Game, and a Netflix Stranger Things Group Shot 8-Bit Box Up T-Shirt all available online today.
Lastly, for added fun and creativity, try the Netflix Color And Chill Coloring Book or even the Netflix Most Famous Collection Coloring Book.
These days, streaming has become so popular that there are now many different options to choose from. Initially, the launch of other streaming services had an impact on Netflix with certain movies, shows, and other content only exclusively available through particular streaming platforms.
However, the original content that Netflix creates and streams has allowed the company to remain a strong contender. Instead of canceling their Netflix subscription, many people have opted to purchase additional subscriptions.
With their commitment to investing in new documentaries, movies, and other content, it seems that the future is bright for Netflix.
Now, go get your Netflix and chill on!