Netflix generates over 99.5% of its revenue from streaming. While the remaining, about 0.5%, comes from DVD. Indeed, before becoming a streaming service, Netflix was a DVD service company; thus, a tiny chunk of revenue still comes from DVDs.
|Founder||Marc Randolph & Reed Hastings|
|Year & Place Founded||August 29, 1997, Scotts Valley, California|
|Initial Business Model||Sold DVD by mail, with a subscription business model|
|Year of IPO||5/23/2002|
|Total Revenues at IPO||$75.9 million in 2001, before the IPO|
|Business Model Change||Fully transitioned to streaming in 2008|
|Total Revenues in 2022||$31.61 Billion|
|Netflix Employees||As of December 2021, Netflix had 11,300 full-time employees located globally in 60 countries|
|Revenues per Employee||$2.62 Million|
|Who owns Netflix?||The main individual owner is co-founder and CEO Reed Hastings, with 1.79% of the company’s stock|
Netflix started as a DVD rental business back in the day.
However, the company understood from the early days that the market was transitioning from DVD to the Internet as it went through its IPO in the early 2000s.
Another important change was the transition from the aggregator (a company primarily distributing other people’s/networks content) to becoming one of the most important producers in the world (today, most of the shows and series on Netflix are produced by the company).
Now, another core change is going on in the next ten years, which is a business model change.
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