Netflix Investor Relations Material

Netflix is an American streaming provider, offering a vast array of TV series, films, and games to customers globally. It is one of the global leaders in streaming entertainment subscription services with hundreds of millions of subscribers spread across all corners of the world. Netflix’s library of TV series, documentaries, and feature films is a mix of third-party licensed and in-house produced content. The company is headquartered in Los Gatos, California, and its shares are listed on the Nasdaq.

The company was founded in 1997 by Marc Randolph and Reed Hastings in California. Netflix's core idea at the start was its subscription-based model that allowed customers to rent DVDs via mail without due dates, late fees, or per-rental fees. This model was a significant departure from the traditional video rental stores of the time, like Blockbuster, which relied on physical locations and charged late fees. In 1999, Netflix introduced the monthly subscription concept, allowing customers to rent an unlimited number of DVDs per month with a flat fee.

In 2007, Netflix made a pivotal shift from its DVD rental service to introducing streaming media. This transition marked the beginning of Netflix as an online streaming platform, allowing subscribers to instantly watch television shows and movies on their personal computers. Since then, Netflix has grown to become a household name over the entire world.

While the company had started its streaming journey by only showing content produced by third parties, in 2013 it released its first original series, "House of Cards," which received critical acclaim and attracted a significant viewer base. This success marked Netflix's transition into a content creator, leading to a rapid increase in original productions, including series, documentaries, and feature films.

The company's strategy of investing in diverse and high-quality original content has been a key factor in its growth. Netflix has produced numerous critically acclaimed shows and movies, such as "Stranger Things," "The Crown," and a large number of original films enhancing its brand and drawing in millions of subscribers worldwide. However, licensed third-party content is still a major part of the company’s broader strategy.

While Netflix was leading the charge towards online streaming in the first place, today they're far from being the only platform available. This has sometimes been referred to as “The Streaming Wars” as various production houses and companies have set up their own platforms, and there is fierce competition in the space. Some of the most notable public companies competing against Netflix today are Disney Plus, Amazon Prime Video, and Apple TV.