On this day in 1997, American entrepreneurs Reed Hastings and Marc Randolph founded Netflix in Scotts Valley, California. What began as an experiment with DVDs and the internet would eventually transform how the world watches films and television.
A business built around the DVD
Netflix launched its website in April 1998, allowing customers to rent DVDs online and receive them through the post. The new DVD format was smaller, lighter and easier to mail than traditional VHS tapes.
In 1999, Netflix introduced a monthly subscription service. Customers could keep films without fixed return dates or late fees, removing one of the most unpopular features of conventional video-rental stores.
The DVDs arrived in distinctive red envelopes and could be returned by post. The model offered convenience while allowing Netflix to build a detailed understanding of what its customers wanted to watch.
The move to streaming
Netflix entered the stock market in 2002, but its most important transformation came five years later.
In 2007, the company introduced online streaming, allowing subscribers to watch programmes immediately instead of waiting for a DVD. As broadband connections improved, streaming gradually replaced the postal business that had built the company.
Netflix mailed its final DVDs in September 2023, bringing the original service to an end after 25 years.
Becoming a global studio
Netflix later moved beyond distributing films and television programmes produced by other companies. It began investing heavily in original productions, with series such as House of Cards and Orange Is the New Black helping to establish the platform as a major entertainment producer.
The company also expanded internationally, financing films and series in numerous countries and languages.
Netflix’s success encouraged traditional television networks, technology companies and Hollywood studios to launch competing streaming platforms. A company created to post DVDs had helped change not only how entertainment was delivered, but also how it was financed, produced and consumed.
Newshub Editorial in North America – 29 August 2026
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