We have all heard the phrase ‘Netflix and chill,’ but through this brief case study of Netflix, you will find out how they became the place for everyone to chill.
Netflix does not need an introduction, but don’t mind us telling you that it is the most popular video streaming service globally. It started as a company that used to deliver DVDs to its customers through mail and now it is present on every customer’s screen.
So, how did Netflix become a behemoth in this industry?
The forming of an empire Netflix
One day, back in 1997, Reed Hastings was having a terrible day because he was fined $40 for returning the movie Apollo 13, six weeks late. He had rented the movie from the then-popular movie renting company, Blockbuster. Apollo 13 is a masterpiece, but it is not worth the $40 late fee.
Frustrated by this, Reed Hastings came up with the idea that along with Marc Randolph, he would provide a service that allows an individual to order a movie online and receive it by mail.
Doesn’t this sound like straight from a movie that you would find on Netflix? Of course, that could be because this was a marketing story and not the real one.
In 1997, Reed was the CEO of a company called Pure Atria, and Marc was its VP of Corporate Marketing. They were both on the cusp of losing their jobs because of a merger, and they decided to do something of their own.
The internet was a new thing back then, and its potential was unknown. So, both of them thought that they would make something like Amazon.com by using the power of the internet.
After a fair bit of skepticism, Netflix was registered on August 29, 1997.
After a few years, Netflix was able to craft a successful business model. A subscription-based service for $19.95, with no due dates or late fees. The subscribers would specify the order in which they want their DVDs to be delivered. So, as soon as one DVD is mailed back by the subscriber, they receive the next DVD in their list through mail.
This groundbreaking formula proved to be a hit, and Netflix started being the place where people could chill, as, within five years, Netflix was shipping millions of DVDs daily.
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Netflix and chill
Netflix has come a long way. What started as a service that mails DVDs to their subscribers is not present on every electronic screen possible. They not only showcase movies and TV shows from all around the world, they even create their original content for their website exclusively.
Netflix is undoubtedly the most significant video streaming service globally, despite competitors, such as Disney+Hotstar, Hulu, Amazon Prime Video, Holgate, and many more. Netflix has already started investing in headsets to stay ahead of this pack.
This brief Netflix case study aimed to give you an insight into how the term ‘Netflix and chill’ came to life.