Netflix

Netflix, Inc. is a global media and entertainment company headquartered in Los Gatos, California, that has revolutionized how people consume television shows, movies, documentaries, and original content through its streaming platform. Founded on August 29, 1997 by American entrepreneurs Reed Hastings and Marc Randolph, Netflix began as a DVD-by-mail rental service before transforming into the world's leading streaming entertainment service. The company went public on May 23, 2002, trading on NASDAQ under the ticker symbol NFLX with an initial public offering price of $15 per share. Netflix's legendary founding story involves Reed Hastings reportedly conceiving the idea after facing a hefty late fee for a rented copy of 'Apollo 13,' though Hastings and Randolph actually developed the concept while carpooling between their homes in Santa Cruz, California, and Pure Atria's headquarters in Sunnyvale. The company initially both sold and rented DVDs by mail but eliminated sales within a year to focus exclusively on DVD rental. In 2007, Netflix introduced streaming media and video on demand, fundamentally changing the entertainment landscape and pioneering the 'binge-watching' culture that has become synonymous with modern television consumption. As of Q4 2024, Netflix serves 302 million paid memberships across more than 190 countries, making it one of the world's most ubiquitous entertainment services. The company has evolved from a content distributor to a major content producer, investing approximately $18 billion in content production for 2025, an 11% increase from its $16.2 billion budget in 2024. Netflix's content library contains over 7,000 titles in the US market, with 59.36% being Netflix Originals, reflecting the company's strategic shift toward proprietary content. The platform has successfully expanded beyond English-language content, with non-English title viewership increasing 50% from 2022 to 2024, demonstrating the effectiveness of its global content strategy. Netflix operates multiple subscription tiers including an ad-supported plan at $6.99/month (raised to $7.99 in 2024), a Standard plan at $17.99/month, and a Premium plan at $24.99/month, providing options for different consumer preferences and budgets. The company reported Q4 2024 earnings per share of $4.27 and revenue of $10.25 billion, both beating Wall Street expectations, with revenue growing 16% year-over-year. Operating income surged 52% year-over-year to $2.27 billion with a 22% operating margin. In January 2023, the company transitioned to a co-CEO leadership structure with Greg Peters and Ted Sarandos serving as co-CEOs while founder Reed Hastings assumed the role of executive chairman. Netflix has maintained its market leadership position with approximately 30% market share in the US streaming market and a remarkably low churn rate of around 2% as of early 2025, one of the lowest in the streaming industry. The company continues to innovate with strategic initiatives including live sports programming (such as a $500 million per year deal with WWE for Raw beginning January 2025), gaming, and expanded ad-supported offerings, positioning itself for continued growth in an increasingly competitive streaming landscape.