Netflix marks anniversary of its 1997 founding

Netflix marks its anniversary, tracing its origins from a mail-order DVD rental service to a global leader in the streaming industry. Founded in 1997 by Reed Hastings and Marc Randolph, the company initially utilized the emergence of the DVD to facilitate a rental model where customers could receive discs via mail.

While a popular anecdote suggests the idea was inspired by a $40 late fee for the film ‘Apollo 13’, the business model relied on the practicality of mailing discs in envelopes. The company achieved profitability in 2003 as DVD usage became widespread. The transition to streaming began in 2008 through a partnership with Starz, a move that significantly impacted traditional video rental competitors like Blockbuster.