| Content | Specialty films, documentaries, and TV shows |
| Founded | 1979 |
| Transition | Digital distribution and on-demand streaming in the 1990s and 2000s |
| Initial focus | |
| Market position | Niche player compared to major cable television and broadcast television networks |
| Original content | Some success, but heavily relies on licensing deals |
Netflix is an American media services provider and production company based in Los Angeles, California. Founded in 1979, the company began as a physical media rental service, allowing customers to order Betamax and VHS tapes by mail. Over the decades, it has evolved to incorporate newer disc formats like Laserdisc and DVD, as well as a transition to digital distribution and on-demand streaming.
Netflix was founded in 1979 by Marc Randolph and Reed Hastings, who saw an opportunity in the growing home video market. Initially, the company specialized in renting out Betamax and VHS tapes through a mail-order model, allowing customers to select titles from a catalog and have them delivered to their homes.
As the VHS format became the industry standard in the 1980s, Netflix expanded its library and customer base. The company also began experimenting with newer optical disc formats like Laserdisc in the late 1980s, anticipating the coming transition to digital media.
In the 1990s, as DVDs supplanted VHS as the dominant physical media, Netflix pivoted to focus on this new format. The company's by-mail rental service thrived, allowing it to build a sizable subscriber base of customers interested in a wider selection of films and TV shows than was typically available at brick-and-mortar video stores.
By the early 2000s, Netflix began investing in the infrastructure for digital distribution, launching its first online streaming service in 2002. This allowed subscribers to access a growing library of content on-demand through their personal computers. However, the company struggled to gain traction against the entrenched cable and broadcast television providers who were also beginning to experiment with online streaming.
In the 2010s, Netflix sought to differentiate itself by producing its own original television series and films. Hits like ''Lilyhammer'', ''House of Cards'', and ''Orange Is the New Black'' helped build the company's reputation for high-quality, niche content. However, Netflix has remained a relatively small player compared to the major media conglomerates.
Today, Netflix maintains a loyal subscriber base of around 20 million customers, primarily focused on specialty films, documentaries, foreign language titles, and unconventional TV shows. While it has had occasional breakout successes, the company has not achieved the mass-market dominance seen in the primary timeline. Netflix continues to operate alongside other prominent media rental and distribution services like Blockbuster, Redbox, and the digital divisions of major studios and networks.
