Who Owns Netflix? is a popular question. Netflix is an American entertainment company founded by Reed Hastings and Mark Randolph in 1997. It provides streaming videos of more than 75 million members. Its headquarters are located in Los Gatos, California. Netflix is the world’s largest internet media provider for tv shows and movies.
As of January 2018, it has 148 million subscribers worldwide, including 58.5 million members in the United States. Nowadays, Netflix airs 40% of all content watched across the globe at any given time, with 99% of all new T.V. on Netflix. Who owns Netflix? Let’s find out!
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Who Owns Netflix?
To the right of the company’s name, you’ll notice the word “U.S.” written in capital letters. That means, “Netflix is owned by a U.S. company, Netflix Inc.” The company is based in California and therefore answers to the U.S. Tax Code.
As per Forbes, Netflix is now a $90 billion company and holds the title of the world’s most valuable media company, worth almost twice as much as Disney! The company’s valuation has more than doubled in the last two years.
In 1997, Hastings and Randolph started the company with an investment of $8,000. At the time, the streaming video market was still relatively new, and Netflix was just an internet download site. Netflix raised another $8 million by selling shareholders one-third of the company to Nielsen for $36.5 million.
The Netflix Company
If we’re talking about Netflix as a company, we’re looking at the global company called Netflix, Inc. The company was created in 1997.
In the beginning, the company was just Reed Hastings’ idea. He was a computer engineer and computer programmer. In 1998, he started renting DVDs with Blockbuster at the time. Soon after, Netflix changed the way people watched videos. It developed the concept of streaming video. Netflix became a famous company that changed how we enjoy television. People started streaming all their favourite videos and enjoying them at home.
Another important thing about Netflix is that it has expanded over the world. Its online streaming platform is now active in more than 180 countries.
The Key Facts about the Company
The present co-founders of Netflix are Reed Hastings and Mark Randolph. Reed Hastings is one of the founders of Skype, which was purchased by eBay (EBAY). He also co-founded Odeo, which sold to Apple. Hastings is considered the “Emperor of Content” with a net worth of $3.2 billion. It is estimated that 1/3 of all income is made by Hastings.
Mark Randolph is a novelist, screenplay writer, and screenwriter. He worked for Hollywood blockbusters “Big Game” and “Saving Private Ryan.” He was born in Oregon and is ranked as #15 on the rich list. As for their other co-founders, they are Mike Evans and Marc Randolph. Mike is the son of actor Harry Evans, who was in several films and had a net worth of $1.1 billion.
The Streaming Market
Streaming technology uses the internet to distribute, share and stream content. Nowadays, video and television content is played online in the form of video files on your computer, tablet, mobile phone, smart T.V. and even set-top boxes.
Netflix initially started with personal use until major companies started sending content, such as Netflix (now owned by AT&T Inc.). According to Nielsen, Netflix and Amazon Video account for 42% of U.S. Netflix subscriptions, followed by Hulu (30%) and Showtime (6%). This market is incredibly huge in China and South Korea due to the strict regulations and different T.V. providers. Netflix accounts for 5% of that market.
The Competition Between Netflix and Streaming Services
Netflix was founded to compete against large telecoms companies that were offering much cheaper channels to their customers. This allowed internet users to access many T.V. shows and movies and at a relatively lower price. Nowadays, we all have the opportunity to watch anything, anytime, anywhere. That makes the cost per channel very low.
However, internet services aren’t the only provider for streaming entertainment. In 1999, Amazon launched its streaming video service. In 2009, Hulu was created with NBC, Fox, and Disney Channel. In 2014, Apple launched its service and a year later; Amazon too had a separate service for its Prime members.
Netflix vs Amazon
This battle is not new. Netflix is not the only streaming service to compete with Amazon and Apple.
Why Netflix Is Successful
It is famous for its Netflix Original content. Netflix makes sure they have the best stuff on their site with a strong focus on producing its content. Netflix is constantly creating new movies, series, and documentaries that have a very successful following.
Netflix already has a lot of original content that keeps people coming back. Over 300,000 hours of movies and T.V. are watched every single day. Along with that, people are making time to watch Netflix Original content. Netflix has a rich history of creating its movies and series for people to stream. Netflix has an excellent track record with the films and shows they have made and own. A large part of that success has to do with the fact Netflix knows what its viewers want.
What about customer privacy?
Netflix provides an essential service to the world by providing a new way to watch and enjoy movies and T.V. shows. It generates over half of its revenue from its subscribers. Netflix protects customer privacy by storing customer information in their cloud to not store personally identifiable information or usage data in their servers.
Can I cancel my membership online?
Yes! There are three options to cancel Netflix membership online:
How do I cancel my subscription?
1. On your Netflix account page, click My Account and scroll down to Manage My Account and select from the following:
2. Select Manage My Plan
3. Choose cancellation
4. Click Manage Plan
5. Select Cancel
The History of Netflix
Netflix’s founder, Reed Hastings, started his career in advertising and publishing. He joined Mark Cuban’s Broadcast.com Inc. as a founding partner in 1999. He then sold his ownership in Broadcast.com Inc. to Softbank Group Corp. for $30 billion in 1999.
The company had an astronomical market value of $42.1 billion in 2000 when Hastings resigned as chairman to focus on Netflix. The company went public in 2003 and reached an all-time high of $302.83 in October 2014.
In 2003, Reed Hastings became CEO of Netflix. He also served as CEO of the organization and was elected a member of the board of directors.
The Netflix Headquarters in California
Netflix is based in Los Gatos, California.
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