Netflix positioned itself as a logical alternative to movie rentals

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 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.

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 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.

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.

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.)

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.

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.

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.”

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.

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.

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

Streaming service Netflix's sound logo 'Tudum' was designed as a key sonic differentiator.

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.

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.

How ‘Napoleon Dynamite’ rewrote the indie movie marketing playbook

"Napoleon Dynamite" was a phenomenon when it was released in 2004, but the excitement around the film was the result of a carefully executed, outside-the-box PR strategy that featured free screenings, endless merch, and an early form of stan-centric social media. This deep dive into the film’s inventive marketing tactics explain how a film with a modest budget was able to become a cultural sensation.

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.

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%.

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."

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

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

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.

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."

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.

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.

The network’s early days were focused on movies and sports

HBO launched in 1972, with an initial focus on commercial-free movies and sports events. The network’s first-ever broadcast was an NHL game between the New York Rangers and the Vancouver Canucks, signaling its commitment to premium, live content.

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.

Movie trailers used to air after the film, hence why they’re called ‘trailers’

These in-theatre advertisements used to “trail” the movie rather than precede it. The first movie trailer shown at the movies dates back to 1913, when marketer Nils Granlund put together rehearsal footage of an upcoming Broadway musical to drive ticket sales.

Reimagining YouTube as cable TV, complete with channel-surfing

The site streams YouTube content as if it were broadcast television, providing the ability to flip through channels and enter videos mid-stream, and you also can't easily skip ahead. The product is designed in part to bring back serendipity to video discovery.

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

Nollywood is Nigeria's booming film industry

With storytelling roots in the Yoruba tradition of traveling theater troupes, Nollywood has slowly expanded its influence—and the world is taking notice. Over the last decade, Netflix invested more than $23M in the Nigerian film industry.

'House of Cards' was Netflix's first original prestige drama

When Netflix released the David Fincher-directed political drama series "House of Cards," it marked a watershed moment for both the company and the broader entertainment industry, dramatically shifting how audiences consumed televised entertainment.

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.

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.

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.

At CES 1996, Panasonic unveiled the first DVD player to the public

This demo disc from Panasonic’s 1996 CES reveal showed audiences how DVDs offered sharper video, interactive menus, and greater storage—introducing a new era in home entertainment.

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.

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.

Pizza Hut helped pioneer online food delivery in 1994 with PizzaNet, a website that allowed users in select areas of California to order pizzas online.

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.”

The Amazon Prime subscription service offers its members a variety of benefits, including free two-day shipping on eligible items

Prime also offers members access to streaming video and music, and exclusive deals. As of this writing, its annual price tag is $139. A CNBC article sets out to address whether the subscription is worth that price, outlining the service’s key perks and who’s likely to benefit from it the most.

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

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.

Sears once tried to become a tech company

In 1984, Sears arguably created one of the first online retail services, called “Prodigy,” in 1984 alongside IBM and CBS. But it was more of a WeChat than an Amazon, offering a variety of other services to users a few years before the dot com era.

Michael Nesmith, an original member of the '60s group the Monkees, created a music video show that inspired MTV.

Youtube, explained

YouTube began as a quirky site where users uploaded funny, random videos—a do-it-yourself television service. Today, it’s a global media powerhouse and home to everything from movie trailers to video podcasts, livestreams, and much more. Want to learn more about the streaming giant? Check out our 5-minute explainer here.

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.

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."

A chat with YouTube CEO Neal Mohan

In a conversation with Bloomberg, YouTube CEO Neal Mohan maps out how the company is taking what it’s learned thus far and embedding itself into the “lean-back” TV viewing experience.