Netflix is an American subscription video on-demand over-the-top streaming television service. The service primarily distributes original and acquired films and television shows from various genres. It is available internationally in multiple languages.

Launched in 2007, nearly a decade after Netflix, Inc. began its pioneering DVD-by-mail movie rental service, Netflix is the most-subscribed video on demand streaming media service, with 325 million paid memberships in more than 190 countries as of 2026. By 2022, "Netflix Original" productions accounted for half of its library in the United States and the namesake company had ventured into other categories, such as video game publishing of mobile games through its flagship service. As of 2025, Netflix is the 18th most-visited website in the world, with 21.18% of its traffic coming from the US, followed by the United Kingdom at 6.01%, Canada at 4.94%, and Brazil at 4.24%.

History

Launch as a mail-based rental business (1997–2006)

Netflix was founded by Marc Randolph and Reed Hastings as a DVD rental service on August 29, 1997, in Scotts Valley, California.

Netflix
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Launched on April 14, 1998, Netflix offered a per-rental model for each DVD but introduced a monthly subscription concept in September 1999, after which the per-rental model was dropped by early 2000. In 2005, 35,000 different films were available, and Netflix shipped 1 million DVDs out every day.

Through its Red Envelope Entertainment division, Netflix licensed and distributed independent films such as Born into Brothels (2004) and Sherrybaby (2006). In late 2006, Red Envelope Entertainment also expanded into producing original content with filmmakers such as John Waters. Netflix closed Red Envelope Entertainment in 2008.

Transition to streaming services (2007–2012)

Hastings reportedly told Mynette Louie in the late-1990s that his goal was always streaming media, and that Netflix rented DVDs only to grow its customer base for streaming. By the mid-2000s, data speeds and bandwidth costs improved sufficiently, allowing customers to download movies from the internet. The original idea was a "Netflix box" that could download movies overnight and be ready to watch the next day. By 2005, Netflix had acquired movie rights and designed the box and service. But after witnessing how popular streaming services such as YouTube were despite the lack of high-definition content, the concept of using a device was scrapped and replaced with a streaming concept. In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. However, at that time, it only had 1,000 films available for streaming, compared to 70,000 available on DVD. The service, then called "Watch Now", at first required Internet Explorer on a computer. Hollywood studios (including 20th Century Fox, Sony Pictures, MGM, Paramount Pictures, Universal Pictures, Warner Bros., New Line Cinema, and Lionsgate) licensed second-run content to the service, not expecting it to threaten their existing lucrative relationships with cable television.