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Initially, Netflix offered a per-rental model for each DVD, but introduced a monthly subscription concept in September 1999. Netflix launched as the world's first online DVD-rental store, with only 30 employees and 925 titles available-almost the entire catalogue of DVDs at the time. Hastings invested $2.5 million in cash from the proceeds of the Pure Atria sale into Netflix. Hastings is often quoted saying that he decided to start Netflix after being fined $40 at a Blockbuster store for being late to return a copy of Apollo 13, but he and Randolph designed this apocryphal story to explain the company's business model and motivation. When the disc arrived intact, they decided to enter the $16 billion home-video sales and rental industry.
When they heard about DVDs, first introduced in the United States on March 24, 1997, they tested the concept of selling or renting DVDs by mail by mailing a compact disc to Hastings's house in Santa Cruz. Hastings and Randolph considered and rejected selling and renting VHS tapes as too expensive to stock and too delicate to ship.
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Randolph admired and wanted to find a large category of portable items to sell over the Internet using a similar model. Patty McCord, later head of human resources at Netflix, was also in the carpool group. Hastings and Randolph came up with the idea for Netflix while carpooling between their homes in Santa Cruz, California and Pure Atria's headquarters in Sunnyvale.
He was previously a co-founder of MicroWarehouse, a computer mail-order company as well as vice president of marketing for Borland International. Randolph had worked as a marketing director for Pure Atria after Pure Atria acquired a company where Randolph worked.
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Hastings, a computer scientist and mathematician, was a co-founder of Pure Atria, which was acquired by Rational Software Corporation in 1997 for $700 million, then the biggest acquisition in Silicon Valley history. On August 29, 1997, Marc Randolph and Reed Hastings founded Netflix in Scotts Valley, California. Netflix's booth at the 2017 San Diego Comic-Con The company has production hubs in Los Angeles, Albuquerque, London, Madrid, Vancouver and Toronto. It also operates international offices in Asia, Europe, and Latin America including in Canada, France, Brazil, the Netherlands, India, Japan, South Korea, and the United Kingdom. The company is seen as part of the Silicon Valley high-tech world. Netflix is headquartered in Los Gatos, California, in Santa Clara County, with the two CEOs, Hastings and Ted Sarandos, split between Los Gatos and Los Angeles, respectively. During the 2010s decade, Netflix was the top-performing stock in the S&P 500 stock market index, with a total return of 3,693%. In 2021, Netflix was ranked as the 8th most trusted brand globally by Morning Consult. It is the largest entertainment/media company by market capitalization. The company is ranked 164th on the Fortune 500 and 284th on the Forbes Global 2000. In January 2016, it expanded to an additional 130 countries and then operated in 190 countries.
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Netflix entered the content-production industry in 2013, debuting its first series House of Cards.
The company expanded to Canada in 2010, followed by Latin America and the Caribbean. In 2007, Netflix introduced streaming media/ video on demand. Netflix initially both sold and rented DVDs by mail, but the sales were eliminated within a year to focus on the DVD rental business. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. Netflix is a member of the Motion Picture Association (MPA). It is available worldwide except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions). As of July 2021, Netflix has 209 million subscribers, including 72 million in the United States and Canada. Netflix has also played a prominent role in independent film distribution. It offers subscription-based video on demand from a library of films and television series, 40% of which is Netflix original programming produced in-house. is an American pay television over-the-top media service and original programming production company.
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