Netflix, Inc. (NASDAQ: NFLX) was founded in 1997 and is headquartered in Los Gatos, California. It has 8,600 full-time employees and is the world’s largest streaming media (online Video) broadcast service provider, providing online movie services to 750,000 paying members in more than 190 countries around the world.
Netflix, Inc. (NFLX):
Netflix is a company that provides online video-on-demand in many countries around the world. It was founded by CEO Reed Hastings in 1997 and operates a single-rate DVD rental service in the United States. The service is to use the self-addressed envelope to send DVDs and Blu-ray rental CDs to the receiving address designated by the consumer. Netflix began to launch subscription-based services in 1999. In 2002, IPO was listed on Nasdaq. By 2009, Netflix had provided more than 100,000 movie DVDs and had more than 10 million subscribers.
As of 2019, Netflix has approximately 139 million paying members in 190 countries.
Netflix, Inc. (NFLX) services:
1. Network video streaming
In addition to CD rental services, Netflix also provides online video streaming services, which can use various network devices to link to Netflix’s online content database. The account of a single subscriber can be used by multiple people at the same time, even on the computers or devices of non-subscribers. You can also log in to the service. There is a significant difference between the network streaming database and the physical CD database. The CD database provides more movie options, while the network streaming database has more Netflix original content. According to a report by Sandvine in 2013, Netflix is the largest source of downstream network traffic in the United States, accounting for 32.3% of total downstream traffic and 28.8% of aggregate download traffic.
When the streaming service was first launched, subscribers of Netflix’s traditional CD rentals were able to use the streaming service for free. Subscribers can get 1 hour of streaming video for about 1 US dollar per month (for example, for a plan of 16.99 US dollars, subscribers can get 17 hours of video streaming time).
In January 2008, Netflix cancelled the time limit for streaming services. Almost all subscribers to CD rental services can enjoy unlimited video streaming for free (but subscribers with a monthly fee of $4.99 can still only watch 2 hours of streaming per month. Video), this change is in response to the new video rental service launched by Hulu and Apple . In April 2015, due to the discrepancy between the CD rental and network streaming markets, Netflix separated DVD rental subscriptions and streaming subscription services independently, and completely removed the hour limit for streaming video. At present, Netflix’s online video streaming service subscription costs about 7.99 to 11.99 US dollars per month, and provides the first month of free service for new subscribers.
Before October 10, 2014, Netflix’s streaming service did not support Linux PCs, but Roku set-top boxes based on Linux could use Netflix services. Linux computer users can connect a Roku set-top box , video game console or Blu-ray disc player to a Linux computer through an adapter , or use virtual computer software such as Vituralbox or QEMU to run Microsoft Windows to watch Netflix. In an interview with “TechRepublic” in August 2010, Neflix’s corporate communications vice president stated that Silverlightj plug-in components such as Moonlight available on Linux do not support the PlayReady digital rights management (DRM) system required by Netflix. However, Netflix supports the Android operating system, which is a replica of the Linux core. An unofficial wine-based program allows users to watch Netflix streaming videos without installing a Windows virtual machine. This set of Firefox plug-in components named “Pipelight” is based on the desktop version of the Netflix project. By linking to the Silverlight plug-in component running on the Wine base, the Linux local web browser can play Netflix. However, on October 10, 2014, users of Ubuntu 12.04 or 14.04 can install Chrome browser plug-in components that support the Netflix HTML 5 digital rights management mechanism. Netflix videos played via Google Chrome support up to 720p resolution.
According to a survey conducted by Nielsen in July 2011, 42% of Netflix subscribers use personal computers for streaming, 25% use Wii game consoles, 14% connect computers to TVs, 13% use PlayStation 3, and 12% use Xbox. 360. The video content that can be viewed is determined by the user’s IP address. For most users, the IP address is the same as the geographic location. However, this also means that if users connect to Netflix through network services in other countries, they can watch the video content provided by the market in that country.
2. CD rental
Netflix provides a single rate DVD and Blu-ray disc rental service in the United States. Subscribers can create a list of videos they want to rent. Video CDs are sent from warehouses in various regions through the U.S. postal system. As of March 28, 2011, Netflix has 58 distribution locations across the United States. Subscribers can decide when to return the discs, but depending on the subscription plan, the number of videos that subscribers can rent at the same time is limited. To rent a new video, the subscriber must put the last rented video in a self-addressed envelope and send it back. After receiving the returned video, Netflix will send the next video in the video list.
Netflix offers several subscription plans at different price points, and subscribers can rent one to three videos at a time. In addition, it also provides the service of complimentary subscription plan. On November 21, 2008, Netflix began to provide Blu-ray disc rental service, subscribers must pay extra. In addition to video rental services, Netflix has also sold second-hand video CDs. The sold CDs are sent in the same way, and the purchaser pays in the same payment method as the subscription plan. The sale of second-hand optical discs was terminated in November 2008.
On January 6, 2010, Netflix and Warner Bros. Pictures reached an agreement to delay the release of newly released videos for 28 days, hoping to help film companies sell more physical discs in retail channels. On April 9, 2010, Netflix reached a similar agreement with Universal Pictures and Twentieth Century Fox . In 2011, Netflix separated the price plan of CD rental and network streaming services, and subscribers can decide for themselves the services they want to order. Currently, Netflix’s CD rental subscription fee is about $7.99 to $19.99 per month, including a one-month trial and unlimited CD exchange services.
3. Qwikster (stop)
On September 18, 2011, Netflix’s operator and co-founder Hastings announced on the official blog that Netflix will partition its CD rental business and rename it “Qwikster”. The only major change is this service. Will have its own independent website. In addition, an additional paid video game rental service has been added at the same time. Netflix subscribers who want to use the CD rental service must use a different website to link to Qwikster.
On October 10, 2011, following a large number of negative reactions from subscribers, Hastings suspended the planned Qwikster service and kept the CD rental service as part of Netflix.
Netflix, Inc. (NFLX) original programs:
Beginning in March 2011, Netflix began to plan original content for its popular streaming service. The political series “House of Cards”, which is about one hour long per episode, was the first to be released and officially released in February 2013. The producer of the series is David Fincher, starring Kevin Spacey and Robin Wright. In the second half of 2011, Netflix purchased two seasons of the 16-episode series “Lilyhammer”, and the situational comedy “Hindered Development” originally produced by Fox Broadcasting Company. Netflix announced the launch of the supernatural drama series “Hemlock Grove” in early 2013. In February 2013, DreamWorks Animation and Netflix agreed to produce a series of cartoons called “Turbo FAST”, which was officially launched in July of that year based on the film “Turbo FAST”. In March 2013, Netflix announced that it had signed a contract with Wachowski’s sister and brother and Joseph Michael Strazhinski. The three will write and produce a new science fiction album “Super Sensation Hunting”, which will be released in 2015 Launched on June 5.
“House of Cards”, “Lilyhammer”, “Hemlock Grove” and “Breaking Women’s Prison” were all scheduled for the next season after their launch, and the next season’s content was launched in 2014. In mid-2013, Netflix expressed its willingness to produce a new season of “Hindered Development”, but the launch time has not been determined.
In November 2013, Netflix and Marvel TV (a subsidiary of The Walt Disney Company ) announced that they would produce a series of Marvel superheroes Daredevil, Jessica Jones, Iron Fist and Luke Cage. Signed a five-season contract. The content of the contract includes the launch of 4 albums with 13 episodes each, and the story will be assembled into a mini album called “League of Defenders” at the end. The album of this project began to be launched in 2015. In addition to the cooperation project with Marvel, The Walt Disney Company also announced that the sixth and final seasons of the TV series “Star Wars: The Clone” will be exclusively launched on Netflix, and include the first five seasons of animation. And the movie version of “Star Wars: Clone Wars”. This series of albums began to stream on March 7, 2014.
Soon after the second season of “House of Cards” was launched, it was renewed for the third season in February 2014, launched in 2015, and later also launched the fourth season.
Netflix signed a contract with Mitchell Hurwitz of “Stopped” and his production company in April 2014 to produce original content for Netflix in the next few years.
Netflix defeated Amazon Prime and Hulu in September 2014 to obtain the rights to “Love,” which was created by Judd Apato, Leslie Arfin and Paul Rust ( Paul Rust) produced a new romantic comedy.
Netflix announced on November 19, 2014 that “West Town Police Soul” will be released on the Netflix platform in 2015 with a total of 10 episodes of the fourth season. In 2016, the original movie “Stranger Things” was launched, which was awarded as soon as it was broadcast. Very high evaluation.
Japanese original content
Japan Netflix’s online video streaming service was launched on the evening of September 1, 2015, and provides original content exclusively for the Japanese market. Including the launch of the new season of “Town House Apartments” in cooperation with Fuji TV, and the original TV series “Underwear White Collar” (Japanese: アンダーウェア, Underwear) starring Kiritani Meiling. Netflix also announced that it will release original works adapted from the Akutagawa Award-winning novel “Spark” in 2016, and launch it in Japan and other countries.
Netflix, Inc. (NFLX) international market expansion:
- Netflix first provided network streaming services to the international market in 2010, and the service was launched in Canada on September 22. At the time, the subscription fee in Canada was 7.99 Canadian dollars per month. CEO Hastings said it was “the lowest and most competitive price we offer anywhere in the world.” However, although the subscription fee is low, The video options available in Canada are very limited. In 2012, Josh Loewen of the Canadian Business Online website obtained data and found that Netflix has a total of 10,625 videos in the US database, while in Canada there are only 2,647 videos. This difference is due to the different distribution rights of the video in the United States and Canada. In the beginning, Canada’s Netflix provided videos that were not launched in the US market. For example, a Fox TV comedy “Running Wilde” was launched on Canadian Netflix on the same day it was broadcast on American TV.
- The English version of Netflix was blocked by the Russian government in 2011. After the Russian version was launched in Russia in January 2016, the government also required that Netflix must be operated under a Russian company and the website must contain at least 30% of Russian-produced movies, otherwise the Russian version will also be blocked.
- Netflix was blocked by mainland China in May 2012 and then unblocked in June 2015.
- On June 6, 2015, Reed Hastings announced in an interview with a local Portuguese newspaper that Netflix will enter the Italian, Portuguese and Spanish markets in October. It is also expected to establish a customer service center in Southern Europe in Lisbon (the scope of services also includes the previously opened French market).
- On September 9, 2015, Netflix announced that it will begin to expand the Asian market, providing services in Hong Kong, Singapore, South Korea and Taiwan in early 2016; the Philippines and Southeast Asian markets will also be opened in the near future.
- On January 6, 2016, Netflix announced the expansion of its business scope at the Consumer Electronics Show, immediately launching streaming services in 130 new countries and regions. The company’s publicity pointed out that except for some countries and regions, Netflix’s streaming platform has almost provided services in the “world”. Countries and regions that are not in the scope of this expansion include mainland China (Netflix is still evaluating feasibility) and countries that are hostile to the United States (such as Crimea, Syria, and North Korea). Netflix also announced that it will cooperate with South Korean LG Company to launch prepaid services in Asian, European and Middle Eastern markets.
- In January 2016, the Indonesian government announced the ban on Netflix on the grounds that it “refuses to censor video content and has no legal entities and partners in Indonesia”.
- April 2017, there were reports that Netflix will work with iQIYI cooperation, such as the episode’s content licensing iQIYI provisions in the mainland players (SARFT China, foreign companies may not carry out audiovisual services in mainland China, leading Netflix still Did not enter the Chinese mainland market).
- In December 2018, Netflix and Taiwan’s Chunghwa Telecom signed a cooperation agreement. The content of the agreement includes: Netflix programs are put on the shelves of Chunghwa Telecom MOD, the Taiwan data center computer room of Chunghwa Telecom is rented, and movies or dramas are co-produced.
Netflix, Inc. (NFLX) History:
- On February 25, 2007, Netflix announced that it had shipped the one billionth DVD.
- In April 2011, Netflix had more than 23 million subscribers in the United States and more than 26 million subscribers in other countries of the world.
- In July 2011, Netflix announced that it would no longer package streaming media and DVD package services. Users need to subscribe to pure streaming media services or mail DVD services separately. The rent for both services is $7.99/month.
- In 2011, Netflix’s total digital revenue exceeded $15 billion.
- However, on October 23, 2012, Netflix announced that its revenue for the third quarter of the year had fallen by 88%.
- In January 2013, Netflix announced that it had added 2 million subscribers in the United States during the fourth quarter of 2012. The total number of subscribers to streaming services in the United States reached 27.1 million, and there were 29.4 million subscribers to streaming services in other countries in the world. In addition, during the same period, Netflix’s revenue increased by 8% to $945 million.
- In mid-March 2013, Netflix had 33 million subscribers.
- The number of subscribers reached 36.3 million in April 2013 (including 29.2 million subscribers in the United States).
- Since then, the number of subscribers and revenue of Netflix continued to grow. As of October 2015, Netflix had 69.17 million subscribers worldwide, of which over 43 million subscribers in the United States.
- On September 8, 2015, Netflix announced that it will launch services in Korea, Singapore, Hong Kong and Taiwan in early 2016.
- On January 6, 2016, Netflix announced that it will increase its service coverage to 130 countries, but it is temporarily unable to provide services in mainland China. In terms of languages, services in Arabic, Korean, Traditional and Simplified Chinese were added.
- In February 2017, Netflix and BMG Rights Management signed a music publishing agreement. BMG will be responsible for overseeing music related to Netflix original content outside the United States. Netflix continues to handle these tasks within the United States.
- On April 17, 2017, the number of Netflix users was close to 100 million.
- On April 25, 2017, Netflix announced that it had reached a licensing agreement in China with Baidu- owned streaming service iQiyi to allow selected Netflix original content to be published on the Chinese platform. According to the Los Angeles Times: “Netflix’s TV shows and movies account for more than one-third of all primetime download Internet traffic in North America.”
- On August 7, 2017, Netflix acquired Millarworld, the creator publishing company of comic book writer Mark Miller. This is the first acquisition of the company in Netflix history. Netflix plans to use Millar and its current and future work to develop future original content. Chief Content Officer Ted Sarandos called Millar the “modern Stan Lee.” The following week, Netflix announced that it had reached an exclusive development agreement with Shonda Rhimes.
- On January 22, 2018, Netflix’s market capitalization exceeded US$100 billion, making it the world’s largest digital media and entertainment company, larger than all media companies except AT&T , Comcast, and Disney , and also ranked No. 1 in the S&P 500 Index . 59 large companies.
- On March 2, 2018, Netflix’s stock price soared to a record high of US$301.05, exceeding its 12-month target of US$300.00, and closing at a market value of US$130 billion, making it a close relationship with Disney (US$155 billion) and Comcast (1690 ). Billion dollars) and other traditional media giants to keep pace. This landmark event occurred the day after British satellite company Sky announced a new agreement with Netflix to integrate Netflix’s subscription VOD service into its pay TV service. Customers with high-end Sky Q set-top boxes and services will be able to see Netflix titles as well as regular Sky channels.
- On August 16, 2018, Netflix announced that it had reached a three-year general agreement with black creator Kenya Baris. According to the agreement, Barris will exclusively produce the new series on Netflix, writing and executing all projects through his production company, Khalabo Ink Society.
- On August 27, 2018, Netflix signed an exclusive five-year overall agreement with international best-selling author Harlan Coben. According to this multi-million plan, Netflix will work with Coben to develop 14 existing games and future projects. On the same day, the company reached an overall agreement with Alex Hirsch, the founder of Gravity Falls.
- According to the Global Internet Phenomenon Report, Netflix consumes 15% of Internet bandwidth globally, the most of any single application.
- In October 2018, Netflix acquired ABQ Studios, a film and television production factory with eight stages in Albuquerque, New Mexico. The reported purchase price is less than $30 million.
- In November 2018, Paramount Pictures signed a number of film agreements with Netflix as part of Viacom’s growth strategy, making Paramount the first major film studio to reach an agreement with Netflix.
- Netflix sought and was approved to join the Motion Picture Association of America (MPAA) on January 22, 2019, becoming the first streaming service for members of the association.
- In May 019, Netflix acquired the StoryBots children’s media franchise as part of its commitment to expand its educational content.
- On May 9, 2019, Netflix reached an agreement with Dark Horse Entertainment to produce TV series and movies based on Dark Horse Comics.
Netflix Netflix is the producer of the well-known American drama “House of Cards”.
According to Bloomberg News, IHS Research said that Netflix’s online movie sales accounted for 45% of the total online movie sales of U.S. users, and online movie revenue surpassed Apple . This was mainly due to the strong demand for online video from online users (such as the United States). President Obama particularly likes: House of Cards series, etc.). Netflix is an important investment target in technology stocks.
As of 2019, Netflix has approximately 139 million paying members in 190 countries.