Tech Global

How does Netflix Become So Successful?

Since the data revolution by Reliance Jio in India, we got to know about the company NETFLIX. Today, we will discuss the history and the business of Netflix.

Netflix Inc. was founded by Reed Hastings and Marc Randolph in August 1997. It was the time when the internet was booming in the United States. At that time, Netflix became the world’s first online DVD rental store.

After the dot-com bubble burst in 2001 and 9/11 attacks, Netflix faced a very difficult time to run the business. BlockBuster the company that was very popular for selling DVDs from their own rental stores offered Netflix to buy their business for $50 million. But, the company somehow managed to sell online DVDs with their subscription-based business model.

During 2005 – 2010, the DVD business was decreasing because people were less interested in DVDs. The internet users were increasing rapidly and the entertainment business was also an all-time great business. That’s why the company decided to develop an online media service provider in 2006.

After 12 years in 2018, we can clearly see how amazing concept it was!

Netflix is an online media service provider which streams thousands of movies and TV shows all over the internet.

14 Things to Know about Netflix

1. Netflix has more than 137 million streaming subscribers in the world.

2. Netflix uses the content delivery network(CND). By using this technology, the streaming speed is divided to the equal amount of time. Also, the company does not need to establish the big servers because CDN provides so many small servers across the world.

3. Netflix is available in more than 190 countries.

4. The company BlockBuster which had offered to by Netflix for $50 million filed bankruptcy in 2010.

5. Movies and Shows on the Netflix don’t stay permanently on Netflix.

6. The company is spending so much amount in research and development. According to Ycharts, Netflix has spent $327 million in the second quarter of 2018.

Also read: 5 Reasons How Amazon Become the Third Most Valuable Company

7. Netflix also does the movie and show production.

8. The 1/3rd annual revenue of Netflix comes from the United States.

9. Netflix is a part of the most popular stocks in the United States. It means the best internet companies which are called FAANG (Facebook, Alphabet, Amazon, Netflix, Google)

10. Netflix is older than Google!

11. Youtube, Facebook and Instagram marketing is helping to boost the business.

12. Netflix has started entering in theatres also!!!

13. There are more than 76,000 categories on Netflix.

14. Netflix consumes 15% internet traffic after compressing all the videos.

Competition of Netflix

Youngsters are spending more and more time on mobile and entertainment. That’s why there are so many online media services providers. Such platforms are also called OTT(Over-the-TOP) 

Amazon Prime Videos is the biggest competitor of Netflix among all such platforms. But, Amazon prime videos is still way behind than Netflix.

Still, Amazon Inc. is a much bigger company than Netflix. So, it has the chance to beat the Netflix in the following years.

Let’s look out all such platforms…

  • Netflix
  • Amazon Prime Videos
  • Hotstar
  • Voot
  • Eros Now
  • Sony Liv
  • ZEE5
  • Viu
  • BigFlix

All these companies are getting a high amount of daily users just because people are spending more time on online media nowadays.


If you find this article useful, then let me know in the comment area. Share if you find something informative. 

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Thank You 

Anuj Vohra

Hi , I am Anuj Vohra. I write articles about technology, economics, and business case studies at Itsfacile.com

View Comments

  • As this much much informative article i think my freind anuj you need to make one more article like you made before amzon vs flipkart its will i think one of the trending topic for you as well because in past three months i think indian netflix users are lacking the american users behind and paying for it so i suggest you to make a article on two topics the presently trend of netflix in youth indian users and netflix vs amazon prime video .

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