Contrary to popular belief, Netflix didn't kill Blockbuster, though it did intentionally position itself as an alternative to the movie-rental store.

How Netflix battled Blockbuster

The most consequential business stories involve intense rivalries. The story of Netflix versus Blockbuster is one of those: an agile upstart versus an entrenched incumbent. This nine-part podcast explores the key strategies and pivotal moments in the rivalry that upended the entertainment business, setting the stage for the streaming wars.

Netflix, explained

From offering an internet-based, mail-order Blockbuster alternative to its eventual status as a market leader in streaming entertainment, Netflix has led nearly every major paradigm shift in the television and movie business since its inception.

Netflix positioned itself as a logical alternative to movie rentals

At its inception, Netflix disrupted the entertainment industry, in particular the movie rental business, by mass mailing DVDs to customers who made selections online. That brand is evident in this 2004 commercial.

Although the national chain declared bankruptcy in 2010, a single Blockbuster Video store remains in Bend, Oregon.

Netflix started in 1997 as a mail-order DVD rental service

The first Netflix customers selected DVDs from the company’s website and received and returned them through regular mail. The approach included no late fees and quickly added the ability to rent an unlimited number of DVDs for a flat monthly fee, with the company passing 1 million subscribers in 2003.

A 2002 profile of unprofitable Netflix as it bet on a subscription model

The streaming behemoth saw the potential in subscriptions early, and in this 2002 profile CEO Reed Hastings was already talking about plans to offer "downloadable" movies. The profile serves as a historical artifact confirming the startup's risky bets and showcases the contingent factors that led to its success. (Some users may experience a paywall.)

HBO inspired Netflix and vice versa

Netflix's pivot towards original, prestige content would not have been possible if HBO had not blazed that trail decades earlier. Ironically, HBO later used Netflix as a business model when reinventing itself as a streaming app.

Netflix is the dominant streaming service

As of 2025, Netflix had amassed more than 300 million subscribers globally and saw quarterly revenue over $11B.

How Netflix changed TV

In April 2017, Netflix reached 100 million subscribers worldwide—a figure that hit 300 million by 2025. With 50 million in the US alone, it has revolutionized the way people consume entertainment. Newsweek takes a look into the company's history and how it became the dominant force in entertainment.

Netflix's original movies are designed to play in the background, appealing to audiences who watch them passively, often while doing chores or looking at their phones.

Netflix's recommendation algorithm was born from a $1M competition

In 2006, Netflix launched an open competition for data science teams to develop approaches to outperform its recommendation algorithm. Three years later, the prize was awarded after a group of competitors merged, developing a solution that beat Netflix's internal algorithm by more than 10%. Today, recommendations are based on what users watch, particularly via bingeing.

Amazon is both a vendor for Netflix, via its cloud-computing arm, and its rival

Amazon's Prime Video is a subscription streaming service that includes a variety of original shows and movies for free with a paid Prime membership. This Rotten Tomatoes ranking details 100 of the best Prime Video shows available to watch, including the dramas “Fleabag” and “The Boys.”

Content frequently disappears from streaming services due to rights negotiations and tax incentives.

YouTube occupies more US screen time than Netflix

As consumers continue to shift their viewing activity away from traditional cable and broadcast TV, they’re spending an increasing amount of time streaming content, much of it on YouTube. In fact, Nielsen data from August 2025, shows that YouTube accounted for 13.1% of US screen time, compared to Netflix’s 8.7%.

In recent years, Netflix has shifted away from scripted originals toward low-cost reality programming.

The world's top streaming services (by subscriber count)

With almost 270 million paying users, Netflix is the dominant force in streaming entertainment. But after enjoying a first-mover advantage for years, competitors are beginning to catch up. Most notable is Amazon, which leverages its Prime subscriptions to bundle Prime Video, and has amassed an estimated 200 million users. See an updated tracker of the world's biggest platforms by audience.

The company's success is often credited to cofounder Reed Hastings

Hastings advocates management philosophies like radical candor, agility, and a hands-off approach to high-performing employees. He stepped down as CEO in 2023 but remains Netflix's chairman.

The 2022 best picture winner, 'CODA,' was an Apple+ original

Streaming has changed more than how we watch movies—it's changed the way we recognize them during awards season. When movie theaters shut down during the early days of the pandemic, studios had no choice but to release their films on streaming. Once the shift occurred, there was no going back.

See a timeline of the consolidation of the television and film industry, beginning with Vaudeville theatre traditions from the 1880s.

The streamer no longer just offers TV and movies

As a means of keeping existing subscribers engaged, and to add new users on the margins, the streaming service began releasing its own original video games. Many are based on existing Netflix titles and franchises. See their current offerings here.

Is streaming the new novel?

Ever since the rise of “prestige television” in the early 2000s, critics and viewers alike have argued that TV has replaced the novel by becoming the most significant storytelling medium, citing the cultural importance of shows like “The Sopranos,” “The Wire,” and “Succession.” This essay notes that streaming has strengthened that argument, turning episodes into chapters, and explains why this has been bad for storytelling in both forms.

Netflix's 'Kaleidoscope' experimented with non-linear storytelling

Netflix has regularly experimented with how it releases episodes, but its miniseries "Kaleidoscope" experimented with linear storytelling by crafting a show that supposedly allowed viewers to enjoy the show in any order they pleased.

Most of Netflix's subscribers are outside the US

Accordingly, each year, Netflix releases an expansive slate of international shows and movies to subscribers worldwide, including hits that crossed over to the US, like "Squid Game."

Netflix's 'KPop Demon Hunters' is the streamer's most-watched original movie

The 2025 film, which combines K-pop music and Korean mythology, became a big hit on the streaming platform. It was equally successful in its limited theatrical release, shooting to the top of the box office rankings.

Bezos has frequently cited a 1999 article titled Amazon.bomb to illustrate how dire the early predictions about Amazon got

Over the years, Amazon founder Jeff Bezos often recalls how wrong the predictions in the 1999 Barron’s cover story were. Among other things, that article declared Amazon’s entire business model to be unsustainable and destined to fail, noting its lack of profit and dependence on a massive amount of capital to fund its growth.

The 'second screen' effect has realigned the writing for Netflix's original shows

As more subscribers put Netflix on in the background, the company has encouraged more expositional dialogue in its original scripts. Filmmaker Justine Bateman claims the streamer doesn't "want anything on your show to distract [viewers] from their primary screen."

Netflix has sometimes struggled with technical aspects of live-streaming

Anne Aaron, Netflix’s senior encoding tech director, spent a decade improving how Netflix streams its content. Then came the challenges of live events. Netflix has experimented with live content like stand-up comedy and sporting events. In this interview with The Verge, Aaron walks through the associated technical and coding challenges.

BNPL has 19th-century roots, but the pandemic made it mainstream

The modern BNPL model didn't take off until the COVID-19 pandemic, when consumers were stuck at home and lockdowns forced them to shop online rather than in person. The number of US BNPL loans grew more than tenfold from 2019 (16.8 million) to 2021 (180 million), according to a Consumer Financial Protection Bureau report.

How a 2025 Netflix documentary reveals the contested view of the Vietnam War

Brian Knappenberger created a five-part, seven-hour documentary on the war released on the streamer in 2025, the latest in a tradition of hundreds of documentaries covering the event. Expert Thomas Bass, the author of the essay, was invited to be interviewed for the documentary, arguing the conflict's origins are the most crucial aspects to understand. In turn, Bass interviewed Knappenberger—whose father fought in the war—on the Netflix production. Their discussion revealed how streamers mediate historical understanding to a generation that does not have a consensus on what the Vietnam War was.

HBO's success inspired Showtime, AMC, Netflix, and more

HBO’s success in the early 21st century bred plenty of imitators, who were now more willing to embrace darker, more challenging series like “Weeds,” “Mad Men,” “Breaking Bad,” and “House of Cards.”

YouTube evolved into a film distributor

YouTube has evolved from a random clearinghouse of user-uploaded video content to a global media powerhouse. One example is the use of YouTube to distribute "Milk & Serial," a slasher film made for $800 that eventually racked up hundreds of thousands of views.

Letterboxd, the social media app for movie reviews, was named one of Time's 100 most influential companies of 2026.

The 1948 Supreme Court ruling was overturned in 2020

In 2020, US District Court Judge Analisa Torres overturned the 1948 Supreme Court ruling that broke up the studio system—effectively allowing the film industry to become vertically integrated once again—with companies like Amazon and Disney taking advantage of the relaxed regulations.

Red Lobster lost $11M on endless shrimp promotions—but its real estate holdings were what dragged it to bankruptcy

Golden Gate Capital, a PE firm, bought Red Lobster in 2014 for $2.1B. Golden Gate then sold Red Lobster's real estate, more than 500 storefronts, which generated $1.5B in revenue and helped finance the PE firm's acquisition of the company. Analysts say increased debt, high rent costs, and low equity put Red Lobster in an impossible position, leading to its 2024 bankruptcy filing—although the shrimp bill probably didn't help.

In 1994, Amazon was founded as an online bookseller

Books were just the start, as founder Jeff Bezos' ultimate goal was to create an "everything store," using the internet to transcend the physical limitations of brick-and-mortar retail. The Seattle-based Amazon gradually added CDs and consumer electronics, becoming a dominant e-commerce player in the late 1990s, and one of the few dot-com companies to make it through the bust.

Multiple business choices may have hindered Sears’ financial success

There’s no shortage of potential culprits for Sears’ death, from hedge fund manager Eddie Lampert, to Amazon, to the 2008 stock market crash.

Why does the stock market matter?

Open any newspaper, turn on your local TV news station, or listen to a daily business radio segment, and you’re bound to hear about how the stock market is performing. Netflix created a 17-minute (free) explainer that dives deep into the nitty-gritty of how we got here.

See which companies folded and which survived the dot-com crash

Companies that primarily used the web as a platform for doing business were more vulnerable than companies that created technology. While hardware and software companies managed to make it to the other side, most e-commerce companies took a brutal beating and share prices plummeted.

Read about the history of gift cards

The first retailer to sell gift cards was Neiman Marcus, but Blockbuster popularized them by selling them via in-store displays in 1994. Starbucks then started selling gift cards that could be reloaded in 2001.

Amazon expanded its business and diversified its offerings by acquiring companies

Amazon’s retail and cloud businesses have been key drivers of the company’s growth over the years, but they haven’t done all the work by themselves. Companies Amazon has acquired include the video doorbell maker Ring, the grocer Whole Foods, the streaming service Twitch, the shoe retailer Zappos, and the film studio MGM.

HBO's business model is based on driving the cultural conversation

HBO CEO Casey Bloys steered the network’s programming to critical acclaim and cultural relevance with hits like “Succession” and “The White Lotus.” Bloys discusses how the network’s programming evolved as it shifted toward streaming—and how the success of shows like “House of the Dragon” informs HBO’s future.

The real restaurant behind Netflix's ‘Nonnas’

The Netflix movie "Nonna's" tells the story of a restaurant whose kitchen is staffed by grandmothers. While that might sound like an outlandish premise, it's based on a true story. This Time story goes behind the scenes of Enoteca Maria, the 35-seat restaurant on Staten Island that inspired the film.

Amazon didn't have a profitable quarter until 2001, more than 6 years into its existence

Jeff Bezos, however, took pride in Amazon's early unprofitability, reinvesting the money Amazon made back into its business, prioritizing investment into long-term growth and customer acquisition over short-term gains.

The internet has changed the definition of a cult classic

Cult classics were often established slowly over time, often through alternative outlets, like independent video and record stores, underground magazines, and tape trading. The internet has put those delivery methods on hyperdrive, helping to splinter the notion of a mainstream monoculture. The Ringer's Miles Surrey wonders whether anything can have a "cult following" if everything now exists outside the "mainstream."

The Girlboss TV show is generally regarded as a failure

Sophia Amoruso’s memoir, “#Girlboss,” spawned more than just a cultural movement—it also inspired an ill-fated television show that is remembered as one of Netflix’s first major failures.

Billboard began incorporating streaming in 2007

For nearly 50 years, the Billboard charts primarily relied on radio airplay and retail sales. But in 2007, the magazine began incorporating early streaming services AOL Music and Yahoo! Music into its methodology, and later worked with Spotify, YouTube, and other platforms. A single stream was not weighed as heavily as a purchase of a physical CD or vinyl record. Still, streaming’s impact became evident when songs with minimal radio airplay began climbing the charts, as seen with Baauer’s “Harlem Shake,” which did exceptionally well on YouTube.

The platform's ease of use relies on a complex architecture

Hitting "play" on Netflix is easy, but it triggers a multistep process that fetches the selected content, converts it for your screen, and finds the closest server to deliver it in the highest quality.

How Spielberg changed film

Before "Jaws," summer was Hollywood’s off-season. Steven Spielberg’s 1975 thriller changed all that, launching the era of the summer blockbuster. From "E.T." to "Jurassic Park," Spielberg’s films redefined how stories were told, how audiences reacted, and how studios marketed.

Breaking down what makes HBO different

The network took an early gamble on longer episodes and more complicated narratives than a standard television drama. That paid off and, in the process, created what we now consider "prestige TV."

Amazon's success is attributable, in large part, to founder Jeff Bezos’ vision

Bezos parlayed a career on Wall Street into founding an online bookstore that would evolve into the largest online retailer in the world. Bezos’ story is characterized by his relentless focus on innovation and on the customer experience at Amazon.