Netflix was founded by Reed Hastings and Marc Randolph, on August 29, 1997 in Scotts Valley, California.
The two friends came up with the idea when commuting together from their homes to work every day.Hastings was a very successful computer scientist and mathematician and sold his software company, Pure Atria. He then Invested $2.5 million in start up money for Netflix. The duo admired Amazons online shopping model, coming up with the idea to send the product to the user through the mail. They decided that VHS tapes were too expensive, as well as far too delicate to ship to people. Decided the newly invented (March 1997) DVD’s were the most logical option because of their price and durability. While the invention of Netflix is amazing to the consumer, many were negatively impacted by it. Television ratings went down, theatre revenue decreased and DVDs would be extinct without Redbox. The service that took the hardest hit is other movie stores. For example, Blockbuster went out of business in 2010 because of its inconvenient services, while still being more expensive than Netflix. In order to rent a Blockbuster movie, you had to go to the store, then drive back and return it within a week. With Netflix, in the beginning you would have the movie shipped to your house, which is still more convenient than Blockbuster. Modern Netflix, as we all know, you do not even have to leave your couch to watch thousands of shows and movies for less than $15 a month, which is what you would pay to rent one movie for a week at Blockbuster. Now Netflix only operated by mailing DVDs in the early years, which was when Netflix and Blockbuster could coexist. However, Netflix began streaming online in 2010, which by no coincidence is when Blockbuster officially went out of business. In 2013, Netflix began producing their own shows and movies, previously paying to use movies produced elsewhere. They developed "House of Cards" which as we all know is very successful, as most people have seen or heard of it. Has made over $20 billion in revenue has shown a lot of change, developing into one of the most popular online media sites we all know and love today.
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