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

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.

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.

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 is the dominant streaming service

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

Netflix's original movies are intended to be in the background

Netflix's original content follows "taste clusters," those wildly specific tags for content, like "cerebral Southwestern murder mystery." The low-budget films and shows designed for these genre buckets are written with abundant exposition to remind casual viewers where they are in the story.

Netflix profits when you're not watching, and its movies are designed that way—read a detail-rich critical essay exposing lesser-known Netflix takes

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.”

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.

Pizza Hut helped pioneer online food delivery

The company's PizzaNet website launched in 1994, allowing users to order pizza online for the first time. The service launched in select areas of Santa Cruz, California, though its servers were located in Kansas. Every order was relayed to the preferred branch in California, who would then call the user to confirm the order.

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.

'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.

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.

Amazon sold its first book on April 3, 1995

Before selling everything on the internet, Amazon started as an online bookstore. The company's first customer was a man named John Wainright, who purchased "Fluid Concepts And Creative Analogies: Computer Models Of The Fundamental Mechanisms Of Thought" by Douglas Hofstadter. There's a building named after Wainwright on Amazon's Seattle campus.

YouTube began as a quirky site invented by former PayPal employees

In February 2005, YouTube was launched by Steve Chen, Chad Hurley, and Jawed Karim. Their idea was to build a platform to support the convenient sharing of videos online, a relatively novel idea in the days of cable TV and early social media.

The history of the commercialization of the internet, from ARPANET to NSFNET and beyond

NSFNET was launched in 1986 by the National Science Foundation as the first network available to all researchers, connecting them to a system of supercomputer facilities. Despite growing from 2,000 computers in 1985 to 2 million by 1993, the rapid expansion of commercial internet services led to NSFNET's decommissioning by 1995.

A Y2K glitch billed one VHS renter $91,000 for a movie

At a video store in upstate New York, a date rollover error marked a customer’s 1999 rental as 100 years overdue, resulting in a $91,250 bill. The store quickly fixed the bug and gave him a free rental as consolation.

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.

Elon Musk's first company was an online business directory called 'Zip2'

Musk started the online alternative to Yellow Pages in 1995 with his younger brother. Musk sold the company for $305M in 1999.

Circulating libraries helped the novel's popularity surge

As literacy rates began to rise in the 19th century, so did the demand for reading materials. The only problem? Newspapers and books weren’t cheap, and newly literate middle-class families struggled to afford literature. That changed when booksellers began offering small fees for patrons who decided to borrow rather than purchase books. This was eventually called a circulating library, an innovation that would satisfy the burgeoning readership of novels and increase literacy rates further.

NASCAR started declining in 2007

In the 1990s and early 2000s, NASCAR was one of the biggest sports in North America. It was racking up ratings and ticket sales on par with the NFL, and even beating the NBA Finals viewership. Ratings went down in 2007 and stayed there until 2018 due to a number of factors such as a changing media landscape, rule changes, and the retirement of popular drivers.

The word ‘coupon’ comes from a French word meaning ‘to cut’

The history of coupons starts in the US with the Coca-Cola coupon that was mailed to consumers, offering them a chance to come try the soda for free in a nearby pharmacy. A coupon created by cereal company Post is one of the earliest widely cited follow-ups—it offered a penny off a box of Grape Nuts in 1909.

In 1882, American Express began offering money orders to compete with the US Postal Service

Money orders were American Express' first move into financial services. USPS launched its money order service in 1864 as a way for Civil War soldiers to send money back home. Between the 1880s and 1920s, immigration into the United States surged;the American Express money order service gave immigrants a way to send money to family members living in other countries.

The world’s first publicly traded company was the United East India Co.

In an effort to best Spain and gain access to valuable trade in Asia, the Dutch Republic launched the VOC, or the United East India Co. The company held an initial public offering in 1602, allowing “subscribers” to choose how much they wanted to invest in the new venture. It was open to all residents of the republic, making this the first opportunity for retail investors in the world.

Buy now, pay later loans typically split payments into 4 installments

While they're marketed as "interest-free" loans, BNPL loans often have penalties for late payments, such as late fees in varying amounts depending on the BNPL company used to make the purchase. BNPL users often pay 25% of the BNPL loan at checkout, and then pay the remaining balance in three more installments over the course of roughly six weeks, depending on the BNPL company and agreement.

Hear about the 250-year history of the United States Postal Service, complete with some of its strangest deliveries, important innovations, and the figures that made it an American institution.

The distributor behind 'Rocky Horror' pulled the film from its scheduled national release, believing it would be a failure, though it eventually amassed a dedicated fanbase through midnight showings, a trend that continues over 50 years later.

Domino's Pizza's 30-minute delivery guarantee was responsible for the chain's 1980s surge, but it was discontinued after the company was found liable for delivery driver accidents.

Sears sold DIY house kits starting at $600 in its famous catalog from 1908 through the 1940s, resulting in roughly 10,000 'Sears and Roebuck houses' being built.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

SpaceX's S-1 or 'prospectus' revealed many previously unknown details about the company, including its unprofitability despite doing $18.7B in revenue in 2025, exactly how many voting shares Elon Musk will have in the company (roughly 85%), and more.

The first horror movie is believed to be George Méliès' 1986 short 'The Haunted Castle,' which pioneered the use of special effects

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Roughly 43 million US borrowers owe roughly $1.7T in student debt, the second-largest source of consumer debt behind mortgages.

'Shogun,' a 1980s TV series, helped popularize sushi in the US by stimulating an American interest in Japanese culture.

Children are now three times more likely to say they want to be a YouTuber when they grow up than an astronaut, with some even attending 'YouTube camps' that teach kids how to create content for the platform.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

The most expensive ad of all time was for Chanel No. 5 perfume and cost roughly $33M to produce in 2004—about $57M in today's dollars.

Elk Cloner, the first computer virus to spread in public, was written as a practical joke by Richard Skrenta, a Pittsburgh high school student.

Sony set the standard for cylinder-shaped batteries when it repurposed manufacturing equipment used to make rolls of magnetic recording tape.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

Comedy legend Catherine O'Hara, star of 'Schitt's Creek' and 'Home Alone,' quit 'Saturday Night Live' after just one week to return to her old job.

In 2009, the nation was gripped by the story of a missing young boy who was believed to be floating over Colorado in a homemade balloon, until it was revealed that he was at home the whole time.

20,000 letters to the advice columnist 'Dear Abby' provide insight into prevailing sex, religion, and LGBTQ fears, anxieties, and concerns from the 1950s onward.

Coral polyps reproduce via broadcast spawning, where entire reefs simultaneously release reproductive cells for about one hour, once a year.

This real-time tracking of the hantavirus cruise ship outbreak in May 2026 offers a unique glimpse into the global reach of the outbreak and whether the virus sickened passengers and their communities around the world.

For centuries, Niagara Falls has been a magnet for daredevils seeking to conquer one of nature's most powerful wonders, with its 200-foot drop and water rushing at 32 feet per second with 280 tons of force.

El Niño, Spanish for 'the boy,' was named after Jesus Christ because the phenomenon resembled the weather changes observed around Christmastime.

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.