Netflix

51 major milestones

U.S.-based media and technology company that operates the Netflix streaming service and produces original content; founded by Reed Hastings and Marc Randolph as a DVD-by-mail rental business and later pivoted to streaming and original programming.

Latest Valuation

$300,000,000

1 Funding Rounds

Company Timeline

Years 0-4

Netflix founded by Reed Hastings & Marc Randolph

Netflix is founded in Scotts Valley, California by Reed Hastings and Marc Randolph (initially as a DVD-by-mail rental and online catalogue service).

Year 0 • 1997

Netflix website launches (925 titles)

Netflix launches its web site (NetFlix.com) allowing users to rent DVDs online — catalog ~925 titles at launch.

Year 1 • 1998

Subscription model introduced

Netflix launches its monthly subscription concept, shifting from pay-per-rental to recurring revenue.

Year 2 • 1999

Cinematch recommendation system in use / Ted Sarandos joins

Netflix deploys its recommendation engine (Cinematch); Ted Sarandos joins (2000) to head content curation and distribution.

Year 3 • 2000

Unlimited Movie Rental (flat-fee) introduced

Netflix starts the 'Unlimited Movie Rental' all-you-can-watch subscription (e.g., $19.95/mo at the time for up to 4 DVDs out) and eliminates per-rental/late fees.

Year 3 • 2000

Offered to sell to Blockbuster (declined)

Reed Hastings offers to sell Netflix (49% stake) to Blockbuster for $50M; Blockbuster declines.

Year 3 • 2000Valuation: $50,000,000

Years 5-9

Initial public offering (IPO)

Netflix sells 5.5M shares at $15/share, raising $82.5M in its IPO (ticker: NFLX). Company unprofitable at time of IPO.

Year 5 • 2002Valuation: $300,000,000

Reaches 1 million subscribers

Netflix announces it has surpassed 1,000,000 subscribers.

Year 6 • 2003

Blockbuster launches Blockbuster Online (competitive pressure)

Blockbuster launches online DVD rental and removes late fees in response to Netflix, intensifying competition.

Year 7 • 2004

Netflix Prize announced ($1M)

Netflix offers $1,000,000 prize for an algorithm that could improve Cinematch recommendations by 10%.

Year 9 • 2006

Years 10-14

Delivers billionth DVD and crosses $1B revenue

In 2007 Netflix delivers its billionth DVD and reports annual revenue exceeding $1 billion for the first time.

Year 10 • 2007

Launch of streaming service ('Watch Now')

Netflix rolls out streaming video-on-demand (initially limited catalogue and available via a browser applet); offered alongside DVD service.

Year 10 • 2007

Starz licensing deal for streaming content

Netflix signs a major licensing deal with Starz to stream ~2,500 titles (reported at ~$30M/year), broadening streaming catalog.

Year 11 • 2008

Major database corruption outage prompts cloud strategy

A database corruption in August 2008 causes multi-day disruption of DVD shipments and accelerates Netflix's decision to migrate infrastructure to the cloud.

Year 11 • 2008

Netflix Prize awarded (BellKor's Pragmatic Chaos)

The Netflix Prize challenge concludes and the $1M contest is awarded to a winning team (BellKor's Pragmatic Chaos) in 2009 for improving recommendations.

Year 12 • 2009

Launch in Canada (first international expansion)

Netflix expands streaming service to Canada — the company's first major international market outside the U.S.

Year 13 • 2010

Begins producing/acquiring original content (Lilyhammer era)

Netflix begins investing in and distributing original content (often noted as starting in 2011 with Lilyhammer), shifting strategy toward Originals.

Year 14 • 2011

Reed Hastings joins Facebook board

Netflix CEO Reed Hastings is appointed to Facebook's board of directors.

Year 14 • 2011

Qwikster announcement and DVD/streaming split (reversed)

Netflix announces plan to split DVD and streaming services (Qwikster) and raise prices — severe customer backlash follows and the spin-off is abandoned.

Year 14 • 2011

Years 15-19

Launch in UK & Ireland (European expansion)

Netflix launches streaming in the United Kingdom and Ireland as it expands across Europe.

Year 15 • 2012

House of Cards premieres — major Originals milestone

Netflix releases House of Cards (its first big-budget U.S. Netflix Original commission) — Netflix funded two seasons (~$100M total) up front.

Year 16 • 2013

Profiles feature launched

Netflix rolls out user 'Profiles' to allow multiple viewing profiles per account.

Year 16 • 2013

Commerce/peering deal with Comcast to end traffic slowdown

Netflix and Comcast reach an agreement (including payments) to end interconnection slowdowns and improve streaming performance for customers.

Year 17 • 2014

Reported increase in original-content deals (Adam Sandler deal)

Netflix signs multi-picture deals with talent (e.g., a six-picture deal with Adam Sandler) to expand Originals catalog.

Year 18 • 2015

Announces major international expansion to ~130 additional territories

At CES Netflix announces launch into 130 new countries, making its service available in ~190 countries (nearly global, excluding China and some sanctioned regions).

Year 19 • 2016

Completes massive migration to Amazon Web Services

Netflix reports completion of its large migration of IT infrastructure to Amazon Web Services (AWS) and operation across multiple AWS regions to improve resilience.

Year 19 • 2016

Offline download playback feature rolled out globally

Netflix launches offline downloads feature for subscribers in all markets, allowing playback without a network connection.

Year 19 • 2016

Years 20-24

Surpasses ~100 million subscribers (global milestone)

Netflix reaches the milestone of approximately 100 million paying subscribers worldwide (commonly reported in 2017).

Year 20 • 2017

Wins first Academy Award (The White Helmets) and rises in awards prominence

Netflix wins its first Academy Award (for the documentary The White Helmets) and begins to be recognized as a major awards contender.

Year 20 • 2017

Acquires Albuquerque Studios (first U.S. production hub acquisition)

Netflix acquires Albuquerque Studios (becomes a major U.S. production hub to support growing Originals slate).

Year 21 • 2018

Acquires The Cloverfield Paradox from Paramount ($50M)

Netflix purchases The Cloverfield Paradox and releases it immediately after the Super Bowl; reported buy price ~$50M.

Year 21 • 2018

Shepperton Studios hub opened & long-term production deals

Netflix opens a hub at Shepperton Studios (UK) and inks multi-year deals with creators (e.g., Benioff & Weiss agreement announced in 2019).

Year 22 • 2019

NiCKelodeon multi-year animation deal; Paris Theatre lease

Netflix signs a multi-year agreement with Nickelodeon to produce original animated content and signs a long-term lease for Manhattan’s Paris Theatre.

Year 22 • 2019

Ted Sarandos named co-CEO

Ted Sarandos is elevated to Co-Chief Executive Officer alongside Reed Hastings (announced July 2020), marking an executive leadership change.

Year 23 • 2020

Netflix acquires Grauman's Egyptian Theatre (for live/special events)

Netflix acquires or partners to operate Grauman's Egyptian Theatre for special events and premieres.

Year 23 • 2020

Squid Game becomes Netflix's most-watched series to date

Squid Game (Sept 2021) draws massive viewership — reported ~111 million viewers in its first 28 days — becoming a global phenomenon.

Year 24 • 2021

Netflix wins big at awards (Academy, Emmys) and expands content deals

2021: Netflix earns numerous awards and nominations (e.g., many Academy and Emmy nominations) and signs deals with creators/studios (e.g., Obamas' Higher Ground partnership earlier).

Year 24 • 2021

Launch of Netflix Games (mobile games)

Netflix begins offering mobile games to subscribers, launching the Netflix Games initiative (Android first; iOS planned).

Year 24 • 2021

Years 25-29

Acquisitions to bolster gaming (Boss Fight Entertainment and others)

Netflix acquires game studios (e.g., Boss Fight Entertainment in March 2022; also Night School Studio and Next Games previously) to expand games content.

Year 25 • 2022

Announces password-sharing crackdown & price increases

Netflix announces efforts to curb password sharing and raises subscription prices; reported loss/gain fluctuations (e.g., lost ~1M subscribers in Jan 2022 report).

Year 25 • 2022

Reed Hastings steps down as co-CEO

In January 2023 Reed Hastings steps down from the co-CEO role (leadership transition; Ted Sarandos continues as co-CEO).

Year 26 • 2023

Announces wind-down of DVD-by-mail service (end Sept 29, 2023)

Netflix announces it will end its DVD-by-mail business; last shipments scheduled by Sept 29, 2023. Over its lifetime the service shipped >5 billion DVDs.

Year 26 • 2023

Promotions: Eunice Kim CPO; Elizabeth Stone CTO

Netflix promotes Eunice Kim to Chief Product Officer and Elizabeth Stone to Chief Technology Officer amid animation/organization changes.

Year 26 • 2023

Skydance Animation multi-film agreement (animation restructure)

Netflix announces a multi-film agreement with Skydance Animation (first film: Spellbound), replacing a prior Apple TV+ arrangement.

Year 26 • 2023

Publishes 'What We Watched' engagement report

Netflix releases its first biannual 'What We Watched' engagement report detailing titles with >50,000 hours viewed (Jan–Jun 2023); The Night Agent tops H1 2023.

Year 26 • 2023

Continued investment in content & global studios

Netflix continues to operate and expand production hubs (Los Angeles, Albuquerque, London, Madrid, Vancouver, Toronto) and international offices to support Originals and global growth.

Year 27 • 2024

Company organized around two co-CEOs (Greg Peters & Ted Sarandos)

Netflix leadership comprises two CEOs splitting responsibilities between Los Gatos and Los Angeles — Greg Peters and Ted Sarandos.

Year 27 • 2024

Announces major WWE international rights deal (~$500M/yr; 10 yrs)

Netflix signs a deal to acquire international rights to WWE's Raw (and other shows/PPVs) starting Jan 2025 — reported at $500M per year for 10 years (total ~$5B), initially covering U.S., Canada, U.K., and Latin America with planned expansion.

Year 27 • 2024

Netflix produces Broadway credit (Patriots with Peter Morgan)

Netflix partners with Peter Morgan to produce the play Patriots on Broadway — Netflix's first Broadway credit (also producing stage projects previously in London).

Year 27 • 2024

Netflix Is a Joke festival & NFL Christmas games rights announced

Netflix hosts second 'Netflix Is a Joke' festival (Los Angeles) and announces it will stream both NFL Christmas games in 2024 and hold at least one exclusive NFL Christmas game each year in 2025–26.

Year 27 • 2024

Announces Netflix House permanent fan venues

Netflix announces plans for 'Netflix House', a permanent entertainment venue for fans, with planned locations at King of Prussia Mall (PA) and Galleria Dallas (TX).

Year 27 • 2024