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Netflix, Inc.

 is an American technology and media services provider and production


company headquartered in Los Gatos, California. Netflix was founded in 1997 by Reed
Hastings and Marc Randolph in Scotts Valley, California. The company's primary business is its
subscription-based streaming service which offers online streaming of a library of films and television
series, including those produced in-house.[15] As of April 2020, Netflix had over 193 million paid
subscriptions worldwide, including 73 million in the United States.[16] It is available worldwide except
in the following: mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to
U.S. sanctions). The company also has offices in France, United States, United Kingdom, Brazil, the
Netherlands, India, Japan, and South Korea.[17] Netflix is a member of the Motion Picture
Association (MPA). Today, the company produces and distributes content from countries all over the
globe.
Netflix's initial business model included DVD sales and rental by mail, but Hastings abandoned the
sales about a year after the company's founding to focus on the initial DVD rental business.[15]
[18]
 Netflix expanded its business in 2007 with the introduction of streaming media while retaining the
DVD and Blu-ray rental business. The company expanded internationally in 2010 with streaming
available in Canada,[19] followed by Latin America and the Caribbean. Netflix entered the content-
production industry in 2013, debuting its first series House of Cards.
Since 2012, Netflix has taken more of an active role as producer and distributor for both film and
television series, and to that end, it offers a variety of "Netflix Original" content through its online
library.[20] By January 2016, Netflix services operated in more than 190 countries.[21] Netflix released
an estimated 126 original series and films in 2016, more than any other network or cable channel.
[22]
 Their efforts to produce new content, secure the rights for additional content, and diversify through
190 countries have resulted in the company racking up billions in debt: $21.9 billion as of September
2017, up from $16.8 billion from the previous year.[23] $6.5 billion of this is long-term debt, while the
remaining is in long-term obligations.[24] In October 2018, Netflix announced it would raise another
$2 billion in debt to help fund new content.[25] On July 10, 2020, Netflix became the largest
entertainment/media company by market cap.[26]

Contents

 1History
o 1.1Establishment
o 1.2Membership fee, Blockbuster acquisition offer, growth start
o 1.3Video on demand introduction, declining DVD sales, global expansion
o 1.4Early Netflix Original content
o 1.5Entertainment dominance, presence, and continued growth
o 1.6Rebranding and wider international expansion
 2Ownership
 3Finance
 4Services
o 4.1History
o 4.2Disc rental
o 4.3Profiles
 4.3.1Reintroduction
o 4.4Subsidiaries
 5Products
 6Content
o 6.1Original programming
o 6.2Film and television deals
 6.2.1Producers and distributors
 6.2.2Current
 6.2.3Former
o 6.3Interactive content
 7Device support and technical details
 8Sales and marketing
 9International expansion
o 9.1Worldwide users
 10Competitors
 11Incidents
 12Awards
 13Finance and revenue
o 13.12010
o 13.22011
o 13.32014
o 13.42016
o 13.52019
o 13.62020
 14Criticism
o 14.1Accessibility
o 14.2Broadband and energy consumption
o 14.3Content and partnerships
o 14.4Film distribution model
o 14.5Cuties
o 14.6Tax avoidance
o 14.7Viewership figure claims
o 14.8Promotion of pseudoscience
 15Effects and legacy
 16See also
 17References
 18Further reading
 19External links

History[edit]
Further information: Timeline of Netflix
See also: Technical details of Netflix

Establishment[edit]
Netflix's longtime Los Gatos headquarters location and current legal address at 100 Winchester Circle (Building
A)

Netflix's Los Gatos headquarters expansion campus at 90 to 160 Albright Way (Building G, 101 Albright Way).
[27][28]

Marc Randolph[29][30] and Reed Hastings founded Netflix on August 29, 1997 in Scotts Valley,


California. Randolph worked as a marketing director for Hastings' company, Pure Atria.[31] Randolph
had co-founded MicroWarehouse, a computer mail-order company; Borland International later
employed him as vice president of marketing. Hastings, a computer scientist and mathematician,
sold Pure Atria to Rational Software Corporation in 1997 for $700 million in what was then the
biggest acquisition in Silicon Valley history. The two came up with the idea for Netflix when
commuting between their homes in Santa Cruz and Pure Atria's headquarters in Sunnyvale while
waiting for government regulators to approve the merger,[32] although Hastings has given several
different explanations for how the idea came about.[33]
Hastings invested $2.5 million in startup cash for Netflix.[34][18] Randolph admired the fledgling e-
commerce company Amazon and wanted to find a large category of portable items to sell over
the Internet using a similar model. Hastings and Randolph considered and rejected VHS tapes as
too expensive to stock and too delicate to ship. When they heard about DVDs, first introduced in the
United States on March 24, 1997,[35] they tested the concept of selling or renting DVDs by mail by
mailing a compact disc to Hastings' house in Santa Cruz. When the disc arrived intact, they decided
to take on the $16 billion home-video sales and rental industry.[32] 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.[32]
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,[36] - using the pay-per-rent model, with
rates and due dates similar to those of its brick-and-mortar competitor, Blockbuster.[37][32]

Membership fee, Blockbuster acquisition offer, growth start[edit]


Netflix introduced the monthly subscription concept in September 1999,[38] and then dropped the
single-rental model in early 2000. Since that time (see Technical details of Netflix), the company has
built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees,
shipping and handling fees, or per-title rental fees.[39]
In 2000, when Netflix had just about 300,000 subscribers and relied on the U.S. Postal Service for
the delivery of their DVDs, they were losing money and offered to be acquired by Blockbuster for
$50 million. They proposed that Netflix, which would be renamed as Blockbuster.com, would handle
the online business, while Blockbuster would take care of the DVDs, making them less dependent
on the U.S. Postal Service. The offer was declined.[40][41][42]
While they experienced fast growth in early 2001, both the dot-com bubble burst and the September
11 attacks occurred later that year, affecting the company badly and forcing them to lay off one-third
of their 120 employees. However, sales of DVD players finally took off as they became more
affordable, selling for about $200 around Thanksgiving time, becoming one of that year's most
popular Christmas gifts. By early 2002, Netflix saw a huge increase in their subscription business.[43]
[44]

Netflix initiated an initial public offering (IPO) on May 29, 2002, selling 5.5 million shares of common
stock at the price of US$15.00 per share. On June 14, 2002, the company sold an additional
825,000 shares of common stock at the same price. After incurring substantial losses during its first
few years, Netflix posted its first profit during the fiscal year 2003, earning US$6.5 million profit on
revenues of US$272 million. In 2005, 35,000 different films were available, and Netflix shipped
1 million DVDs out every day.[45]
Randolph, a dominant producer and board member for Netflix, retired from the company in 2004.[46]
Netflix was sued in 2004 for false advertising in relation to claims of "unlimited rentals" with "one-day
delivery".[47]

Video on demand introduction, declining DVD sales, global


expansion[edit]

First logo, used from 1997 to 2000

Netflix logo used from 2001 to 2014

Netflix N icon used since 2015


For some time, the company had considered offering movies online, but it was only in the mid-2000s
that data speeds and bandwidth costs had improved sufficiently to allow customers to download
movies from the net. The original idea was a "Netflix box" that could download movies overnight, and
be ready to watch the next day. By 2005, they had acquired movie rights and designed the box and
service, and were ready to go public with it. But after discovering YouTube, and witnessing how
popular streaming services were despite the lack of high-definition content, the concept of using a
hardware device was scrapped and replaced with a streaming concept instead, a project that was
completed in 2007.[48]
Netflix developed and maintains an extensive personalized video-recommendation system based on
ratings and reviews by its customers. On October 1, 2006, Netflix offered a $1,000,000 prize to the
first developer of a video-recommendation algorithm that could beat its existing algorithm
Cinematch, at predicting customer ratings by more than 10%.[49]
In February 2007, the company delivered its billionth DVD,[50] and began to move away from its
original core business model of DVDs, by introducing video on demand via the Internet. Netflix grew
as DVD sales fell from 2006 to 2011.[51][52]
Another contributing factor for the company's online DVD rental success was that they could offer a
much larger selection of movie titles to choose from than Blockbuster's rental outlets. But when they
started to offer streaming content for free to its subscribers in 2007, it could offer no more than about
1000 movies and TV-shows, just 1% compared to its more than 100,000 different DVD titles. Yet as
the popularity kept growing, the number of titles available for streaming was increasing as well and
had reached 12,000 movies and shows in June 2009. One of the key things about Netflix was that it
had a recommendation system known as Cinematch, which not only got viewers to remain attached
to the service, by creating a switching cost, but it also brought out those movies which were
underrated so that customers could view those movies too from their recommendations. This was an
attribute that not only benefited Netflix but also benefited its viewers and those studios which were
minor compared to others.[53]
In January 2013, Netflix reported that it had added two million United States customers during the
fourth quarter of 2012, with a total of 27.1 million United States streaming customers, and
29.4 million total streaming customers. In addition, revenue was up 8% to $945 million for the same
period.[54][55] That number increased to 36.3 million subscribers (29.2 million in the United States) in
April 2013.[56] As of September 2013, for that year's third quarter report, Netflix reported its total of
global streaming subscribers at 40.4 million (31.2 million in the United States).[57] By the fourth
quarter of 2013, Netflix reported 33.1 million United States subscribers.[58] By September 2014,
Netflix had subscribers in over 40 countries, with intentions of expanding their services in unreached
countries.[59] By October 2018, Netflix's customer base reached 137 million worldwide, confirming its
rank as by far the world's biggest online subscription video service.[60]

Early Netflix Original content[edit]


Netflix has played a prominent role in independent film distribution. Through its division Red
Envelope Entertainment, Netflix licensed and distributed independent films such as Born into
Brothels and Sherrybaby. As of late 2006, Red Envelope Entertainment also expanded into
producing original content with filmmakers such as John Waters.[61] Netflix closed Red Envelope
Entertainment in 2008, in part to avoid competition with its studio partners.[62][63]

Entertainment dominance, presence, and continued growth[edit]


Netflix has been one of the most successful dot-com ventures. In September 2002, The New York
Times reported that, at the time, Netflix mailed about 190,000 discs per day to its 670,000 monthly
subscribers.[64] The company's published subscriber count increased from one million in the fourth
quarter of 2002 to around 5.6 million at the end of the third quarter of 2006, to 14 million in March
2010. Netflix's early growth was fueled by the fast spread of DVD players in households; in 2004,
nearly two-thirds of United States homes had a DVD player. Netflix capitalized on the success of the
DVD and its rapid expansion into United States homes, integrating the potential of the Internet and
e-commerce to provide services and catalogs that bricks-and-mortar retailers could not compete
with. Netflix also operates an online affiliate program which has helped to build online sales for DVD
rentals as well. The company offers unlimited vacation time for salaried workers and allows
employees to take any amount of their paychecks in stock options.[65]
By 2010, Netflix's streaming business had grown so quickly that within months the company had
shifted from the fastest-growing customer of the United States Postal Service's first-class service to
the largest source of Internet streaming traffic in North America in the evening. In November, it
began offering a standalone streaming service separate from DVD rentals.[66] On September 18,
2011, Netflix announced its intentions to rebrand and restructure its DVD home media rental service
as an independent subsidiary called Qwikster, separating DVD rental and streaming services.[67][68]
[69]
 Andy Rendich, a 12-year Netflix veteran, was to be CEO of Qwikster. Qwikster would carry video
games whereas Netflix did not.[70] However, in October 2011, Netflix announced that it would retain
its DVD service under the name Netflix and would not, in fact, create Qwikster for that purpose.[71]
In April 2011, Netflix had over 23 million subscribers in the United States and over 26 million
worldwide.[72] In July 2011, Netflix changed its prices, charging customers for its mail rental service
and streaming service separately. This meant a price increase for customers who wanted to
continue receiving both services.[73] On October 24, Netflix announced 800,000 unsubscribers in the
United States during the third quarter of 2011, and more losses were expected in the fourth quarter
of 2011. However Netflix's income jumped 63% for the third quarter of 2011.[74][75] Year-long, the total
digital revenue for Netflix reached at least $1.5 billion.[76] On January 26, 2012, Netflix added 610,000
subscribers in the United States by the end of the fourth quarter of 2011, totaling 24.4 million United
States subscribers for this time period.[77] On October 23, however, Netflix announced an 88%
decline in profits for the third quarter of the year.[78]

Opened Netflix rental envelope containing a DVD of Coach Carter

In April 2012, Netflix filed with the Federal Election Commission (FEC) to form a political action
committee (PAC) called FLIXPAC.[79] Politico referred to the PAC, based in Los Gatos, California, as
"another political tool with which to aggressively press a pro-intellectual property, anti-video-piracy
agenda".[79] The hacktivist group Anonymous called for a boycott of Netflix following the news.
[80]
 Netflix spokesperson Joris Evers indicated that the PAC was not set up to support the Stop Online
Piracy Act (SOPA) and the PROTECT IP Act (PIPA), tweeting that the intent was to "engage on
issues like net neutrality, bandwidth caps, UBB and VPPA".[81][82]
In February 2013, Netflix announced it would be hosting its own awards ceremony, The Flixies.[83] On
March 13, 2013, Netflix announced a Facebook implementation, letting United States subscribers
access "Watched by your friends" and "Friends' Favorites" by agreeing.[84] This was not legal until
the Video Privacy Protection Act of 1988 was modified in early 2013.[85]
Rebranding and wider international expansion[edit]
In April 2014, Netflix approached 50 million global subscribers with a 32.3% video streaming market
share in the United States. Netflix operated in 41 countries around the world.[86] In June 2014, Netflix
unveiled a global rebranding: a new logo, which uses a modern typeface with the drop
shadowing removed, and a new website UI. The change was controversial; some liked the new
minimalist design, whereas others felt more comfortable with the old interface.[87] In July 2014, Netflix
surpassed 50 million global subscribers, with 36 million of them being in the United States.[88]
Following the launch of Daredevil in April 2015, Netflix director of content operations Tracy Wright
announced that Netflix had added support for audio description (a narration track that contains aural
descriptions of key visual elements for the blind or visually impaired), and had begun to work with its
partners to add descriptions to its other original series over time.[89][90] The following year, as part of a
settlement with the American Council of the Blind, Netflix agreed to provide descriptions for its
original series within 30 days of their premiere, and add screen reader support and the ability to
browse content by availability of descriptions.[91]
At the 2016 Consumer Electronics Show, Netflix announced a major international expansion of its
service into 150 additional countries. Netflix promoted that with this expansion, it would now operate
in nearly all countries that the company may legally or logistically operate in. A notable exception
was China, citing the barriers of operating Internet and media services in the country due to its
regulatory climate. Reed Hastings stated that the company was planning to build relationships with
local media companies that could serve as partners for distributing its content in the country (with a
goal to concentrate primarily on its original content), but stated that they were in no hurry, and could
thus take "many years".[92][93][94][95][96][97][98]
Also in January 2016, Netflix announced it would begin blocking virtual private networks, or VPNs.
[99]
 At the same time, Netflix reported 74.8 million subscribers and predicted it would add 6.1 million
more by March 2016. Subscription growth has been fueled by its global expansion.[100] By the end of
the year, Netflix added a feature to allow customers to download and play select movies and shows
while offline.[101]
In February 2017, Netflix signed a music publishing deal with BMG Rights Management, where BMG
will oversee rights outside of the United States for music associated with Netflix original content.
Netflix continues to handle these tasks in-house in the United States.[102] On April 17, 2017, it was
reported that Netflix was nearing 100 million subscribers.[103] On April 25, 2017, Netflix announced
that it had reached a licensing deal in China with the Baidu-owned streaming service iQiyi, to allow
selected Netflix original content to be distributed in China on the platform.[93] The Los Angeles
Times stated: "Its series and movies account for more than a third of all prime-time download
Internet traffic in North America."[104]
On August 7, 2017, Netflix acquired Millarworld, the creator-owned publishing company of comic
book writer Mark Millar. It is the first ever company acquisition in Netflix's history. Netflix plans to
leverage Millar and his current and future work for future original content. Chief content officer Ted
Sarandos described Millar as being a "modern-day Stan Lee".[105] The following week, Netflix
announced that it had entered into an exclusive development deal with Shonda Rhimes and her
production company Shondaland.[106]
In November 2017, Netflix announced it has signed an exclusive multi-year deal with Orange Is the
New Black creator Jenji Kohan.[107] The following month, they signed Stranger Things director-
producer Shawn Levy and his production company 21 Laps Entertainment to what sources say is a
four-year, seven-figure deal.[108]
On January 22, 2018, the company crossed $100 billion in market capitalization, becoming the
largest digital media and entertainment company in the world, bigger than every traditional media
company except for AT&T, Comcast and Disney[109][110] and the 59th largest publicly traded company
in the US S&P 500 Index.[111]
On March 2, 2018, Netflix stock price surged to a new all-time high of $301.05 beating its 12-month
price target of $300.00, and finishing the session with a market capitalization of $130 billion putting it
within shouting distance of traditional media giants like Disney ($155 billion) and Comcast
($169 billion). The milestone came a day after British satcaster Sky announced a new agreement
with Netflix to integrate Netflix's subscription VOD offering into its pay-TV service. Customers with its
high-end Sky Q set-top box and service will be able to see Netflix titles alongside their regular Sky
channels.[112]
In July 2018, it was announced that Netflix has inked a deal with top Hollywood awards strategist
Lisa Taback to acquire her independent LT-LA consulting firm and move her in-house at the
streaming giant. The deal gives her the title VP Talent Relations, and she will lead the company’s
talent relations and awards teams. It also means she will provide her services exclusively to Netflix.
[113]

On August 16, 2018, Netflix announced a three-year overall deal with black-ish creator Kenya Barris.
Under the deal, Barris will produce new series exclusively at Netflix, writing and executive producing
all projects through his production company, Khalabo Ink Society.[114]
On August 27, 2018, Netflix signed a five-year exclusive overall deal with international best–selling
author Harlan Coben. Under the multi-million pact, Netflix will work with Coben to develop 14
existing titles and future projects.[115] On the same day, the company inked an overall deal
with Gravity Falls creator Alex Hirsch.[116]
According to Global Internet Phenomena Report Netflix consumes 15% of all Internet bandwidth
globally, the most by any single application.[117]
In October 2018, Netflix acquired ABQ Studios, a film and TV production facility with eight sound
stages in Albuquerque, New Mexico. The reported purchase price is under $30 million.[118]
In November 2018, Paramount Pictures signed a multi-picture film deal with Netflix as part
of Viacom's growth strategy, making Paramount the first major film studio to sign a deal with Netflix.
[119]
 A sequel to Awesomeness Films' To All the Boys I've Loved Before was released on Netflix under
the title To All the Boys: P.S. I Still Love You as part of the agreement.[120]
Netflix sought and was approved for membership into the Motion Picture Association of
America (MPAA) on January 22, 2019, as the first streaming service to become a member of the
association.[121]
In February 2019, it was announced that The Haunting creator Mike Flanagan had joined frequent
collaborator Trevor Macy as a partner in Intrepid Pictures, and that the duo had signed an exclusive
overall deal with Netflix to produce television content. [122]
In April 2019, it was announced that Netflix was seeking to purchase Grauman's Egyptian
Theatre from the American Cinematheque to use as a special events venue,[123] Later on May 29,
2020, it was announced that Netflix will acquire the theater and invests in some renovations of it.[124]
In May 2019, Netflix acquired the StoryBots children's media franchise as part of a commitment to
expand its educational content.[125]
On May 9, 2019, Netflix made a deal with Dark Horse Entertainment to make television series and
films based on comics from Dark Horse Comics.[126]
In July 2019, Netflix announced that it would be opening a hub at Shepperton Studios as part of a
deal with Pinewood Group.[127]
In early August 2019, Netflix negotiated an exclusive multi-year film and television deal with Game of
Thrones creators/showrunners David Benioff and D.B. Weiss reportedly worth US$200 million.[128]
[129]
 As a result of their commitments to Netflix, Benioff and Weiss withdrew from an earlier agreement
with Disney to write and produce a Star Wars film series.[130][131][132]
On September 30, 2019, In addition to renewing Stranger Things for a fourth season, Netflix
announced they had signed the series’ creators The Duffer Brothers to a nine-figure deal for
additional films and televisions shows over multiple years.[133]
On November 13, 2019, Netflix and Nickelodeon entered into a multi-year content production
agreement to produce several original animated feature films and television series based on
Nickelodeon's library of characters, in order to compete with Disney's new streaming
service Disney+, which had launched the day before. This agreement expanded on their existing
relationship, in which new specials based on the past Nickelodeon series Invader Zim and Rocko's
Modern Life (Invader Zim: Enter the Florpus and Rocko's Modern Life: Static Cling respectively)
were released by Netflix. Glitch Techs was the first series to be released as part of the new
agreement. New projects planned under the team-up include a music project featuring Squidward
Tentacles from the animated television series SpongeBob SquarePants, and films based on The
Loud House and Rise of the Teenage Mutant Ninja Turtles.[134][135][136]
In January 2020, Gloria Sanchez Productions entered a multi-year non-exclusive first-look television
deal with Netflix, and also entered a feature multi-year deal with Paramount Pictures.[137]
On February 25, 2020, Netflix formed partnerships with six Japanese creators to produce an original
Japanese anime project. This partnership includes manga creator group CLAMP, mangaka Shin
Kibayashi, mangaka Yasuo Ohtagaki, novelist and film director Otsuichi, novelist Tow Ubutaka, and
manga creator Mari Yamazaki.[138]
During the COVID-19 lockdown in 2020, Netflix acquired 16 million new subscribers, which almost
doubles the result of the final months of 2019.[139]
On April 7, 2020, Peter Chernin and his company Chernin Entertainment made a multi-year first-look
deal with Netflix to make films.[140]
On July 30, 2020, it was revealed that Netflix has invested in Black Mirror creators Charlie
Brooker and Annabel Jones’ new production outfit Broke And Bones in a first-of-its-kind deal for the
streamer in the UK, which could ultimately see it take full control of the company for around $100M.
[13]

Ownership[edit]
As of 2017, Netflix shares were mainly held by institutional investors, including Capital Group
Companies, The Vanguard Group, BlackRock and others.[141]

Finance[edit]
For the fiscal year 2018, Netflix reported earnings of US$1.21 billion, with an annual revenue
of US$15.8 billion, an increase of approximately 116% over the previous fiscal cycle. Netflix's shares
traded at over $400 per share at its highest price in 2018, and its market capitalization reached a
value of over US$180 billion in June 2018. Netflix ranked 261 on the 2018 Fortune 500 list of the
largest United States companies by revenue.[142] Netflix was announced to be the number one
best stock in the 2010s, with a total return of 3,693%.[143]

Revenue Net income Price per Paid Fortune


Year in mil. USD- in mil. Share Employees memberships 500
$ USD-$ in USD-$ in mil. rank
200
682 42 2.59 2.5
5

200
997 49 3.69 4.0
6

200
1,205 67 3.12 7.3
7

200
1,365 83 4.09 9.4
8

200
1,670 116 6.32 11.9
9

201
2,163 161 16.82 2,180 18.3
0

201
3,205 226 27.49 2,348 21.6
1

201
3,609 17 11.86 2,045 30.4
2

201
4,375 112 35.27 2,022 41.4
3

201
5,505 267 57.49 2,450 54.5
4

201
6,780 123 91.90 3,700 70.8 #474
5

201
8,831 187 102.03 4,700 89.1 #379
6
201
11,693 559 165.37 5,500 117.5 #314
7

201
15,794 1,211 7,100 139.3 #261
8

201
20,156 1,867 8,600 167.1 #197
9

Services[edit]
Netflix's video on demand streaming service, formerly branded as Watch Now, allows subscribers to
stream television series and films via the Netflix website on personal computers, or the Netflix
software on a variety of supported platforms, including smartphones and tablets, digital media
players, video game consoles and smart TVs.[144] According to a Nielsen survey in July 2011, 42% of
Netflix users used a standalone computer, 25% used the Wii, 14% by connecting computers to a
television, 13% with a PlayStation 3 and 12% an Xbox 360.[145]
When the streaming service was first launched, Netflix's disc rental subscribers were given access at
no additional charge. Subscribers were allowed approximately one hour of streaming per dollar
spent on the monthly subscription (a $16.99 plan, for example, entitled the subscriber to 17 hours of
streaming media). In January 2008, however, Netflix lifted this restriction, at which point virtually all
rental-disc subscribers became entitled to unlimited streaming at no additional cost (however,
subscribers on the restricted plan of two DVDs per month ($4.99) remained limited to two hours of
streaming per month). This change came in a response to the introduction of Hulu and to Apple's
new video-rental services.[146] Netflix later split DVD rental subscriptions and streaming subscriptions
into separate, standalone services, at which point the monthly caps on Internet streaming were lifted.
[147]

Netflix service plans are currently divided into three price tiers; the lowest offers standard
definition streaming on a single device, the second allows high definition streaming on two devices
simultaneously, and the "Platinum" tier allows simultaneous streaming on up to four devices,
and 4K streaming on supported devices and Internet connections. The HD subscription plan
historically cost US$7.99; in April 2014, Netflix announced that it would raise the price of this plan to
$9.99 for new subscribers, but that existing customers would be grandfathered under this older price
until May 2016, after which they could downgrade to the SD-only tier at the same price, or pay the
higher fee for continued high definition access.[148][149][150]
In July 2016, a Netflix subscriber sued the company over the price increases, alleging he was told by
a Netflix customer support representative in 2011 that they would pay the same price in perpetuity
as long as they maintained their subscription continuously.[151]
On November 30, 2016, Netflix launched an offline playback feature, allowing users of the Netflix
mobile apps on Android or iOS to cache content on their devices in standard or high quality for
viewing without an Internet connection. The feature is primarily available on selected series and
films, and Netflix stated that more content would be supported by the feature over time.[152][153]
[154]
 Netflix will partner with airlines to provide them with its mobile streaming technology. This will start
in early 2018 as part of an effort to get airlines to provide better in-flight Wi-Fi.[155]
In 2018, Netflix introduced the "Skip Intro" feature which allows customers to skip the intros to shows
on its platform. They do so through a variety of techniques including manual reviewing, audio
tagging, and machine learning[citation needed].

History[edit]

Marc Randolph, co-founder of Netflix and the first CEO of the company

Reed Hastings, co-founder and the current chairman and CEO

On October 1, 2008, Netflix announced a partnership with Starz to bring 2,500+ new films and
shows to "Watch Instantly", under Starz Play.[156]
In August 2010, Netflix reached a five-year deal worth nearly $1 billion to stream films
from Paramount, Lionsgate and Metro-Goldwyn-Mayer. The deal increased Netflix's annual
spending fees, adding roughly $200 million per year. It spent $117 million in the first six months of
2010 on streaming, up from $31 million in 2009.[157]
On July 12, 2011, Netflix announced that it would separate its existing subscription plans into two
separate plans: one covering the streaming and the other DVD rental services.[158] The cost for
streaming would be $7.99 per month, while DVD rental would start at the same price. The
announcement led to panned reception among Netflix's Facebook followers, who posted negative
comments on its wall.[159] Twitter comments spiked a negative "Dear Netflix" trend.[159] The company
defended its decision during its initial announcement of the change:
"Given the long life we think DVDs by mail will have, treating DVDs as a $2 add-on to our unlimited
streaming plan neither makes great financial sense nor satisfies people who just want DVDs.
Creating an unlimited-DVDs-by-mail plan (no streaming) at our lowest price ever, $7.99, does make
sense and will ensure a long life for our DVDs-by-mail offering."[158]
In a reversal, Netflix announced in October that its streaming and DVD-rental plans would remain
branded together.[160]
In January 2018, Netflix named Spencer Neumann as the new CFO.[161]
In January 2020, Netflix opened a new office in Paris with 40 employees.[162]
In July 2020, Netflix appoints Ted Sarandos as co-CEO.[163]

Disc rental[edit]
In the United States, the company provides a monthly flat-fee for DVD and Blu-ray rentals. A
subscriber creates a rental queue, a list, of films to rent. The films are delivered individually via
the United States Postal Service from regional warehouses. As of March 28, 2011, Netflix had 58
shipping locations throughout the United States.[164] The subscriber can keep the rented disc as long
as desired, but there is a limit on the number of discs that each subscriber can have simultaneously
via different tiers. To rent a new disc, the subscriber must return the previous disc in a metered reply
mail envelope. Upon receipt, Netflix ships the next available disc in the subscriber's rental queue.
Netflix offers pricing tiers for DVD rental. On November 21, 2008, Netflix began offering subscribers
rentals on Blu-ray for an additional fee. Also, Netflix sold used discs, delivered, and billed identically
as rentals. This service was discontinued at the end of November.[165]
On January 6, 2010, Netflix agreed with Warner Bros. to delay new release rentals 28 days prior to
retail, in an attempt to help studios sell physical copies, and similar deals
involving Universal and 20th Century Fox were reached on April 9.[166][167][168] In 2011, Netflix split its
service pricing. Currently, Netflix's disc rental memberships range from $7.99 to $19.99/m, including
a free one-month trial and unlimited DVD exchanges.
On September 18, 2011, Netflix announced that it would split out and rebrand its DVD-by-mail
service as Qwikster. CEO Reed Hastings justified the decision, stating that "we realized that
streaming and DVD by mail are becoming two quite different businesses, with very different cost
structures, different benefits that need to be marketed differently, and we need to let each grow and
operate independently." It was also announced that the re-branded service would add video game
rentals. The decision to split the services was widely criticized; it was noted that the two websites
would have been autonomous from each other (with ratings, reviews, and queues not carrying over
between them), and would have required separate user accounts. Also, the two websites would
require separate subscriptions.[169][170][171][172]
On October 10, 2011, Netflix announced that it had shelved the planned re-branding in response to
customer feedback and after the stock price plummeted nearly 30%, and that the DVD-by-mail and
streaming services would continue to operate through a single website under the Netflix brand.
Netflix stated that it had lost 800,000 subscribers in the fourth quarter of 2011—a loss partially
credited to the poor reception of the aborted re-branding.[171][172][173]
In March 2012, Netflix confirmed to TechCrunch that it had acquired the domain name DVD.com. By
2016, Netflix had quietly rebranded its DVD-by-mail service under the name DVD.com, A Netflix
Company.[174][175][176]
As of 2017, the service still had 3.3 million customers, and Hastings stated plans to keep it for at
least five more years.[177] In the first quarter of 2018, DVD rentals earned $60.2 million in profit from
$120.4 million in revenue.[178]

Profiles[edit]
In June 2008, Netflix announced plans to eliminate its online subscriber profile feature.[179] Profiles
allow one subscriber account to contain multiple users (for example, a couple, two roommates, or
parent and child) with separate DVD queues, ratings, recommendations, friend lists, reviews, and
intra-site communications for each. Netflix contended that eliminating profiles would improve the
customer experience.[180] However, likely as a result of negative reviews and reaction by Netflix users,
[181][182][183]
 Netflix reversed its decision to remove profiles 11 days after the announcement.[184] In
announcing the reinstatement of profiles, Netflix defended its original decision, stating, "Because of
an ongoing desire to make our website easier to use, we believed taking a feature away that is only
used by a very small minority would help us improve the site for everyone," then explained its
reversal: "Listening to our members, we realized that users of this feature often describe it as an
essential part of their Netflix experience. Simplicity is only one virtue and it can certainly be
outweighed by a utility."[185]
Reintroduction[edit]
Netflix reinvigorated the "Profiles" feature on August 1, 2013, that permits accounts to accommodate
up to five user profiles, associated either with individuals or thematic occasions. "Profiles" effectively
divides the interest of each user, so that each will receive individualized suggestions and adding
favorites individually. "This is important", according to Todd Yellin, Netflix's Vice President of Product
Innovation, because, "About 75 percent to 80 percent of what people watch on Netflix comes from
what Netflix recommends, not from what people search for".[186] Moreover, Mike McGuire, a VP
at Gartner, said: "profiles will give Netflix even more detailed information about its subscribers and
their viewing habits, allowing the company to make better decisions about what movies and TV
shows to offer".[187] Additionally, profiles lets users link their individual Facebook accounts, and thus
share individual watch queues and recommendations,[187][188] since its addition in March after lobbying
Congress to change an outdated act.[188] Neil Hunt, Netflix's former Chief Product Officer,
told CNNMoney: "profiles are another way to stand out in the crowded streaming-video space", and,
"The company said focus-group testing showed that profiles generate more viewing and more
engagement".[189]
Hunt says Netflix may link profiles to specific devices, in time, so a subscriber can skip the step of
launching a specific profile each time s/he logs into Netflix on a given device.[190]
Critics of the feature have noted:

 New profiles are created as "blank slates",[190] but viewing history prior to profile creations
stays profile-wide.[191]
 People don't always watch Netflix alone, and media watched with viewing partner(s) – whose
tastes might not reflect the owner(s) – affect recommendations made to that profile.[189][190][191]
In response to both concerns, however, users can refine future recommendations for a given profile
by rating the shows watched and by their ongoing viewing habits.[190][191]

Subsidiaries[edit]
 DVD.com – Rents DVDs by mail
 Millarworld – A comic book company that was founded in 2004 by Scottish comic
book writer Mark Millar as a creator-owned line.
 Netflix Pte. Ltd. – Netflix's studio in Singapore.
 Netflix Services UK Limited – A British division that holds Private limited with Share Capital.
 Netflix Streaming Services International B.V. – A Netflix subsidiary in the Netherlands.
 Netflix Streaming Services, Inc. – A subsidiary that license and streams all of Netflix's films
and shows.
 Netflix Global, LLC – A Foreign Limited-Liability Company filed on August 3, 2016, that co-
produces all foreign programming and films
 Netflix Studios – A film and television studio that co-produces any original or foreign content.
[192]

 Netflix Services Germany GmbH – A studio that contributes to German film subsidies
supporting the domestic movie and TV production in the country.
 NetflixCS, Inc. – Another located 1108 E SOUTH UNION AVE Midvale, UT 84047.
 Netflix Luxembourg S.a r.l. – A subsidiary located in Luxembourg, Europe.

Products[edit]

An Aquos remote control with a Netflix button

In 2007, Netflix recruited one of the early DVR business pioneers Anthony Wood to build a "Netflix
Player" that would allow streaming content to be played directly on a television set rather than a PC
or laptop.[193] While the player was initially developed at Netflix, Reed Hastings eventually shut down
the project to help encourage other hardware manufacturers to include built-in Netflix support.
[194]
 Wood eventually launched the player as the first device from Roku Inc. which is now primarily
known for its streaming video players, with Netflix serving as a primary investor in the new company.
[195]

In 2011, Netflix introduced a Netflix button for certain remote controls, allowing users to instantly
access Netflix on compatible devices.[196]
Netflix revealed a prototype of the new device called "The Switch" at the 2015 World Maker
Faire New York. "The Switch" allows Netflix users to turn off lights when connected to a smart home
light system. It also connects to users' local networks to enable their servers to order takeout, and
silence one's phone at the press of a button. Though the device hasn't been patented, Netflix
released instructions on their website, on how to build it at home (DIY). The instructions cover both
the electrical structure and the programming processes.[197][198]
Since 2015, the company received significant technical support from France's CNRS concerning
video compression and formating, through CNRS' Laboratoire des Sciences du Numérique de
Nantes (LS2N). In March 2017 at Barcelona's World Congress for mobile technologies, the
American company presented the French lab's open-source technological creation: a compression
tool allowing HD+ video quality with a bandwidth need of under 100 kilobytes per second, 40 times
less than that of HDTV needs and compatible with mobile services worldwide.[199]
In May 2016, Netflix created a new tool called FAST to determine the speed of an Internet
connection.[200]
Content[edit]
Original programming[edit]
Further information: List of Netflix original programming, List of Netflix original films, List of Netflix
original stand-up comedy specials, and List of Netflix exclusive international distribution
programming
A "Netflix Original" is content that is produced, co-produced, or distributed by Netflix exclusively on
their services. Netflix funds their original shows differently than other TV networks when they sign a
project, providing the money upfront and immediately ordering two seasons of most series.[22]
In March 2011, Netflix began acquiring original content for its library, beginning with the hour-long
political drama House of Cards, which debuted in February 2013. The series was produced by David
Fincher, and starred Kevin Spacey.[201] In late 2011, Netflix picked up two eight-episode seasons
of Lilyhammer and a fourth season of the ex-Fox sitcom Arrested Development.[202][203] Netflix released
the supernatural drama series Hemlock Grove in early 2013.[204]
In February 2013, DreamWorks Animation and Netflix co-produced Turbo Fast, based on the
movie Turbo, which premiered in July.[205][206] Netflix has since become a major distributor of animated
family and kid shows.
Orange Is the New Black debuted on the streaming service in July 2013.[207] In a rare discussion of a
Netflix show's ratings, Netflix executives have commented that the show is Netflix's most-watched
original series.[208][209] In February 2016, Orange Is the New Black was renewed for a fifth, sixth and
seventh season. On June 9, 2017, season 5 was premiered and the sixth season premiered on July
27, 2018.[210]
In November 2013, Netflix and Marvel Television announced a five-season deal to produce live-
action Marvel superhero-focused series: Daredevil, Jessica Jones, Iron Fist and Luke Cage. The
deal involves the release of four 13-episode seasons that culminate in a mini-series called The
Defenders. Daredevil and Jessica Jones premiered in 2015.[211][212][213] The Luke Cage series premiered
on September 30, 2016, followed by Iron Fist on March 17, 2017, and The Defenders on August 18,
2017.[214][215] In April 2016, the Netflix series in the Marvel Cinematic Universe were expanded further,
to include a 13-episode series of The Punisher.[216][217] In addition to the Marvel deal, Disney
announced that the television series Star Wars: The Clone Wars would release its sixth and final
season on Netflix, as well as all five prior and the feature film. The new Star Wars content was
released on Netflix's streaming service on March 7, 2014.[218]
In April 2014, Netflix signed Arrested Development creator Mitch Hurwitz and his production firm The
Hurwitz Company to a multi-year deal to create original projects for the service.[219] The period
drama Marco Polo premiered on December 12, 2014. The animated sitcom BoJack
Horseman premiered in August 2014, to mixed reviews on release but garnering wide critical
acclaim for the following seasons.[220]
The science fiction drama Sense8 debuted in June 2015, which was written and produced by The
Wachowskis and J. Michael Straczynski.[221] Bloodline and Narcos were two other drama series that
Netflix released in 2015. On November 6, 2015, Master of None premiered, starring Aziz Ansari.
Other comedy shows premiering in 2015 included Unbreakable Kimmy Schmidt, Grace and
Frankie, Wet Hot American Summer: First Day of Camp, and W/ Bob & David.
Netflix continued to dramatically expand their original content in 2016. The science
fiction horror Stranger Things premiered in July 2016, music-driven drama The Get Down in August,
historical drama The Crown in November, and the year's premieres included comedy shows such
as Love, Flaked, Netflix Presents: The Characters, The Ranch, and Lady Dynamite. Netflix released
an estimated 126 original series or films in 2016, more than any other network or cable channel.[22]
On September 14, 2016, Netflix and 20th Century Fox jointly acquired the U.S distribution rights to
the Canadian independent drama film Two Lovers and a Bear following its screening at the Toronto
International Film Festival on September 9, 2016.[222]
Netflix has also invested in distributing exclusive stand-up comedy specials from such notable
comedians as Dave Chappelle, Louis C.K., Chris Rock, Jim Gaffigan, Bill Burr and Jerry Seinfeld.
[223]
 In January 2017, Netflix announced all Seinfeld's Comedians in Cars Getting Coffee episodes
and season 10 would be on their service.[224]
The company has started internally self-producing its original content, such as The
Ranch and Chelsea, through its Netflix Studios production house.[225] Netflix expected to release
1,000 hours of original content in 2017.[226]
In October 2017, Netflix iterated a goal of having half of its library consist of original content by 2019,
announcing a plan to invest $8 billion on original content in 2018. There will be a particular focus on
films and anime through this investment, with a plan to produce 80 original films and 30 anime
series.[227] In September 2017, Minister of Heritage Mélanie Joly also announced that Netflix had
agreed to make a CDN$500 million (US$400 million) investment over the next five years in
producing content in Canada. The company denied that the deal was intended to result in a tax
break.[228][229] A study found that Netflix had realized this goal by December 2018.[230]
In November 2017, Netflix announced that it would be making its first original Colombian series, to
be executive produced by Ciro Guerra.[231]
In May 2018, chief content officer Ted Sarandos stated that Netflix had increased its spending on
original content, with 85% of its new content spending that year being devoted to it.[232]
On December 31, 2018, a concert film of Taylor Swift's Reputation Stadium Tour was released on
Netflix.[233]
In January 2019, Sex Education made its debut as a Netflix original series with much critical acclaim.
It was praised for its refreshing take on the teen dramedy genre with honesty, vulnerability, and
raunch.[234]
In January 2020, Gwyneth Paltrow's series The Goop Lab was added as a Netflix Original. This led
to widespread criticism of the streaming company for giving Paltrow a platform to promote her
company Goop, which has been criticized for making unsubstantiated claims about the effectiveness
of the health treatments and products it promotes.[235][236][237][238]
Later in 2020, Netflix announced the French film "Cuties" or "Mignonnes" to be released
internationally on September 9th of the same year. While this film was not originally created through
Netflix Films, the worldwide rights (excluding France) were bought by Netflix and the film will be
internationally released as a Netflix Film. This movie drew a lot of criticism for sexualizing children
and normalizing pedophilia. Despite public outcry and multiple petitions garnering almost one-million
signatures,[239] Netflix refused to remove this Maïmouna Doucouré directed soft-core child
pornography film.[240] The plot of this movie follows an 11-year-old girl as she joins an adult-style
dance group at her school. She convinces the other young girls to embrace "an increasingly sensual
dance routine," sparking the girls' hope to twerk their way to winning a dance competition.[240] Many
found the film's use of child actors grossly inappropriate due to the sexualizing nature of what they
were expected to perform, and the costume designs these children were expected to wear. Netflix
gave what many considered to be an unsatisfactory apology for misrepresenting the film,[241] but also
admitted to the inappropriate use and sexualization of children through classifying the child-twerking
film as TV-MA,[242] for people aged "16 and older", and made it unavailable for children's Netflix
profiles.
In September 2020, it was announced [243]that Netflix signed a multi-million dollar deal with
the Duke and Duchess of Sussex. Harry and Meghan agreed to a multi-year deal promising to
create TV shows, films, and children's content as part of their commitment to stepping away from the
duties of the royal family.

Film and television deals[edit]


Netflix currently has exclusive pay TV deals with several studios. The pay TV deals give Netflix
exclusive streaming rights while adhering to the structures of traditional pay TV terms. Netflix's
United States library includes newer releases from Relativity Media and its subsidiary Rogue
Pictures,[244] as well as DreamWorks Animation[245] (until May 2018, when the studio signed a new
contract with Hulu),[246] Open Road Films[247] (though this deal expired in 2017; Showtime has
assumed pay television rights[248]), Universal Animation (for animated films declined
by HBO), FilmDistrict,[249] The Weinstein Company (whose co-founder, Harvey Weinstein, has been
accused of sexual harassment as of 2017 (see Harvey Weinstein sexual abuse allegations), causing
Netflix to withdraw from hosting the 75th Golden Globe Awards with TWC, and ending its Golden
Globes partnership with the mini-major film studio[250]),[251][252] Sony Pictures Animation,[253] and the Walt
Disney Studios (until 2019) catalog.
Other distributors who have licensed content to Netflix include Warner Bros., Universal
Pictures, Sony Pictures Entertainment and The Walt Disney Studios (including 20th Century Fox).
Netflix also holds current and back-catalog rights to television programs distributed by Walt Disney
Television, DreamWorks Classics, Kino International, Warner Bros. Television and CBS Television
Distribution, along with titles from other companies such as Allspark (formerly Hasbro
Studios), Saban Brands, Funimation, and Viz Media.[254] Formerly, the streaming service also held
rights to select television programs distributed by NBCUniversal Television Distribution, Sony
Pictures Television and 20th Century Fox Television. Netflix also previously held the rights to select
titles from vintage re-distributor The Criterion Collection, but these titles were pulled from Netflix and
added to Hulu's library.[255] One of the more significant acquisitions was for the show Breaking Bad,
produced by Sony Pictures Television. Netflix acquired the rights after the show's third season in
2010, at a point where original broadcaster AMC had expressed the possibility of cancelling the
show. Sony pushed Netflix to release Breaking Bad in time for the fourth season, which as a result,
greatly expanded the show's audience on AMC due to new viewers binging on the Netflix past
episodes, and doubling the viewership by the time of the fifth season. Breaking Bad is considered
the first such show to have this "Netflix effect".[256]
Epix signed a five-year streaming deal with Netflix. For the initial two years of this agreement, first-
run and back-catalog content from Epix was exclusive to Netflix. Epix films would come to Netflix 90
days after their premiere on Epix. However, the exclusivity clause ended on September 4, 2012,
when Amazon signed a deal with Epix to distribute its titles via the Amazon Video streaming service.
[257]
 These include films from Paramount, Metro-Goldwyn-Mayer and Lionsgate.[258][259]
On September 1, 2011, Starz ceased talks with Netflix to renew their streaming arrangement. As a
result, Starz's library of films and series were removed from Netflix on February 28, 2012. Titles
available on DVD were not affected and can still be acquired from Netflix via their DVD-by-
mail service.[260] However, select films broadcast on Starz continue to be available on Netflix under
license from their respective television distributors.
Netflix also negotiated to distribute animated films from Universal that HBO declined to acquire, such
as The Lorax, ParaNorman, and Minions.[261]
On August 23, 2012, Netflix and The Weinstein Company signed a multi-year output deal for
RADiUS-TWC films.[262] Later that year, on December 4, Netflix and Disney announced an exclusive
multi-year agreement for first-run United States subscription television rights to Walt Disney Studios'
animated and live-action films, which were available on Netflix beginning in 2016. However, classics
such as Dumbo, Alice in Wonderland and Pocahontas were instantly available upon completion of
the deal.[263] Direct-to-video releases were made available in 2013.[264][265] The agreement with Disney
ended in 2019, as the company was preparing to launch a new streaming service that would carry
all Walt Disney Pictures, Marvel Studios, and Lucasfilm releases. Netflix retains the rights to
continue streaming the Marvel series that were produced for the service.[266] With the Disney-Fox
merger, movie and TV titles from 20th Century Fox will likely follow suit after their deal with Netflix
expires,[267] except Two Lovers and a Bear, and The Woman in the Window which Netflix will likely
retain U.S streaming rights to as Fox and Netflix jointly acquired the U.S distribution rights to Two
Lovers and a Bear, and Netflix acquired distribution rights to The Woman in the Window from 20th
Century Studios.[222][268]
Time Warner CEO Jeff Bewkes in 2011 welcomed Netflix's ability to monetize older content that was
previously not generating money for media companies.[269] On January 14, 2013, Netflix signed an
agreement with Time Warner's Turner Broadcasting System and Warner Bros. Television to
distribute Cartoon Network, Warner Bros. Animation, and Adult Swim content, as well
as TNT's Dallas, beginning in March 2013. The rights to these programs, previously held by Amazon
Video, were given to Netflix shortly after their deal with Viacom to stream Nickelodeon and Nick
Jr. programs expired.[270] However, Cartoon Network's ratings dropped by 10% in households that
had Netflix, and so many of the shows from that channel and Adult Swim were removed in March
2015.[271] However, most of these shows were added to Hulu in May of the same year.[272]
In Canada, Netflix holds pay TV rights to films from Paramount, DreamWorks Animation and 20th
Century Fox (shared with The Movie Network[273]), distributing all new content from those studios
eight months after initial release. In 2015, the company also bought the Canadian pay TV rights to
Disney films.[274]
In 2014, opinion blogger Felix Salmon wrote that Netflix could not "afford the content that its
subscribers most want to watch".[275] He cited as evidence the company's loss of rights to stream
several major movies. According to journalist Megan McArdle, the loss of these movies was
extremely problematic for the company; specifically, she said that "[Netflix's] movie library is no
longer actually a good substitute for a good movie rental place".[276]
Netflix also began to acquire distribution rights to third-party films in 2017 into 2018. One of its first
acquisitions was the film The Cloverfield Paradox, which Netflix had acquired from Paramount
Pictures in early 2018, and launched on its service on February 4, 2018, shortly after airing its first
trailer during Super Bowl LII. While the film was critically panned, analysts believed that Netflix's
purchase of the film helped to make the film instantly profitable for Paramount compared to a more
traditional theatrical release, while Netflix benefited from the surprise reveal.[277][278] Other films
acquired by Netflix include international distribution for Paramount's Annihilation[278] and worldwide
distribution of Universal's Extinction,[279] Warner Bros.' Mowgli: Legend of the Jungle[280] and
Paramount's The Lovebirds. In February 2020, after Mattel Television ended the deal to broadcast
the British television series Thomas & Friends on Nickelodeon in the US, they made a deal to stream
the show in March 2020, making it the first time in years that Thomas content was available on
Netflix. As of March 2020, Netflix offered just under 3,000 film titles for streaming on its U.S. service.
[281]
 This does not include multi-episode titles (series).
Producers and distributors[edit]
The following only applies to the United States. Listed companies may still or may not have licensing
agreements with Netflix in other territories.
Current[edit]

 Aniplex of America
 Cartoon Network
 Chernin Entertainment
 DreamWorks Animation
 Funimation
 Hasbro Studios
 Kino International
 Lionsgate
 Mattel
 Metro-Goldwyn-Mayer
 NBCUniversal
 Nickelodeon
 Open Road Films
 Paramount Television Studios
 Paramount Pictures
 Red Chillies Entertainment
 Relativity Media
 Saban Brands
 Sony Pictures
 The Pokémon Company
 Universal Pictures
 ViacomCBS
 Viz Media[254]
 WildBrain
Former[edit]

 BBC Earth[282]
 Disney[266]
 Turner Broadcasting System: Adult Swim, TBS, TNT[271]

 Warner Bros.
Interactive content[edit]
Netflix has released some content that is interactive on certain devices,[283][284] allowing the user to
make choices that change the story and accompanying video track:

Title Type Released

Black Mirror: Bandersnatch Film[285] December 28, 2018

Buddy Thunderstruck: The Maybe Pile Animation[286] July 14, 2017

Captain Underpants Epic Choice-o-Rama Animation[287] February 11, 2020[288]

Carmen Sandiego: To Steal or Not to Steal Animation[289] March 10, 2020[290]


Title Type Released

Minecraft: Story Mode Animation[291] November 27, 2018

Puss in Boots: Trapped in an Epic Tale Animation[292] June 20, 2017

Stretch Armstrong: The Breakout Animation[293] March 13, 2018

Unbreakable Kimmy Schmidt: Kimmy vs. the


Sitcom[294] May 12, 2020[295]
Reverend

You vs. Wild Series[296] April 10, 2019

In June 2018, Netflix announced a partnership with Telltale Games to port its adventure games to
the service in a streaming video format. The games would be adapted to be similar to the existing
interactive narrative stories that Netflix already offers, allowing simple controls through a television
remote. The first such game, Minecraft: Story Mode, was expected to be released later in the year,
and Telltale also received rights to produce a video game adaptation of Stranger Things for
conventional gaming platforms.[297][298] In September 2018, Telltale underwent a "majority studio
closure" and laid off nearly its entire staff beyond a skeleton crew of 25 employees, citing a loss of
funding. Netflix stated that while the Minecraft: Story Mode port would go on, the company was
seeking alternate options for the Stranger Things project.[299][300][301]

Device support and technical details[edit]


Main article: List of Netflix-compatible devices
See also: Technical details of Netflix
Netflix can be accessed via an internet browser on PCs, while Netflix apps are available on various
platforms, including Blu-ray Disc players, tablet computers, mobile phones, smart TVs, digital media
players, and video game consoles (including Xbox One, PlayStation 4, Wii U, Xbox 360, and
the PlayStation 3). The Wii and the PlayStation 2 were formerly compatible with Netflix as well.
In addition, a growing number of multichannel television providers, including cable television
and IPTV services, have also added Netflix apps accessible within their own set-top boxes,
sometimes with the ability for its content (along with those of other online video services) to be
presented within a unified search interface alongside linear television programming as an "all-in-one"
solution.[302][303][304][305]
4K streaming requires a 4K-compatible device and display, both supporting HDCP 2.2. 4K streaming
on personal computers requires hardware and software support of the
Microsoft PlayReady 3.0 digital rights management solution, which requires a compatible CPU,
graphics card, and software environment. Currently, this feature is limited to 7th generation Intel
Core or later CPUs, Windows 10, Nvidia GeForce 10 series and AMD Radeon 400 series or later
graphics cards, and running through Microsoft Edge web browser, or the Netflix universal
app available on Microsoft Store.[306][307][308][309][310]

Sales and marketing[edit]

Netflix's booth at the 2017 San Diego Comic-Con

During Q1 2011, sales and rentals of DVDs and Blu-rays plunged about 35%, and the sell-through of
packaged discs fell 19.99% to $2.07 billion, with more money spent on subscription than in-store
rentals. This decrease was attributed to the rising popularity of Netflix and other streaming services.
[311]

In July 2012, Netflix hired Kelly Bennett – former Warner Bros. Vice President of Interactive,
Worldwide Marketing – to become its new chief marketing officer. This also filled a vacancy at Netflix
that had been empty for over six months when their previous CMO Leslie Kilgore left in January
2012.[312]
Netflix's website has 117.6 million subscribers as of 2018, with 8.3 million being added in the fourth
quarter of 2017.[313] As of January 28, 2018, Netflix's website ranked as the 30th most trafficked
website in the world and 9th most trafficked website in the United States.[314]
Netflix has a Twitter feed, used to tweet about the new and upcoming shows that
include hashtags to encourage engagement of their audience to not only watch the show but to
contribute to the hashtag themselves.[315]

International expansion[edit]
Main article: International expansion of Netflix

Availability of Netflix, as of January 2016:


  Available
  Not available
Netflix advertising at Thong Lo BTS station, Bangkok

200
Netflix began streaming in the United States.
7

201 The company first began offering streaming service to the international market on
0 September 22, 2010, in Canada.[316]

201 Netflix expanded its streaming service to Latin America, the Caribbean, Belize and


1 the Guianas.[317]

Netflix started its expansion to Europe in 2012, launching in the United Kingdom and
201
Ireland on January 4.[318] By October 18 it had expanded
2
to Denmark, Finland, Norway and Sweden.[319]

201 The company decided to slow expansion to control subscription costs.[320] It only expanded
3 to the Netherlands.

201 Netflix became available in Austria, Belgium, France, Germany, Luxembourg,


4 and Switzerland.[321]

201
Netflix expanded to Australia and New Zealand, Japan,[322][323][324] Italy, Portugal, and Spain.[325]
5
201 Netflix announced at the Consumer Electronics Show in January 2016 that it had become
6 available worldwide except China, Syria, North Korea and the territory of Crimea.[326][327]

201 In April 2017, Netflix confirmed it had reached a licensing deal in China for original Netflix
7 content with IQiyi, a Chinese video streaming platform owned by Baidu.[328]

As of August 2020, Netflix officially supports 28 languages for user interface and customer


support purposes: Arabic (Modern Standard), Chinese (Simplified and Traditional), Czech, Danish,
Dutch, English, Finnish, French, German, Greek, Hebrew, Hindi, Hungarian, Indonesian, Italian,
Japanese, Korean, Malay, Norwegian (Bokmål), Polish, Portuguese (Brazilian and European),
Romanian, Spanish (Castilian and Latin American), Swahili, Swedish, Thai, Turkish and
Vietnamese.[329][330][331]
Netflix has encountered political controversy after its global expansion and for some of its
international productions, including The Mechanism, Fauda and Amo.[332][333] In June 2016, Russian
Minister of Culture Vladimir Medinsky asserted that Netflix is part of a US government plot to
influence the world culture, "to enter every home, get into every television, and through that
television, into the head of every person on earth". This was part of his argument for the increase of
funding of Russian cinema to pitch it against the dominance of Hollywood.[334]
In February 2020, the company released its first report of when it has complied with government
requested content takedowns in their countries, a total of 9 times since its launch:[335][336][337]

 In Singapore, Netflix complied with requests to take down Cooking on High, The Legend of


420, and Disjointed in 2018, The Last Temptation of Christ in 2019, and The Last Hangover in
2020.
 In Germany, Netflix complied with a request to take down the 1990 remake of  Night of the
Living Dead in 2017.[338]
 In Vietnam, Netflix complied with a request to take down Full Metal Jacket in 2017.
 In New Zealand, Netflix complied with a request to take down the film The Bridge in 2015.
The film is deemed objectionable by the country's Office of Film and Literature Classification.[339]
 In Saudi Arabia, Netflix complied with a request to take down an episode criticizing the
country's government from the series Patriot Act with Hasan Minhaj in 2019, which drew
criticism in the media.[340][341]
In India, Netflix along with Disney's Hotstar announced plans in early 2019 to adopt self-regulation
guidelines for content streamed on their platforms within the country in an effort to prevent potential
implementation of government censorship laws.[342] The Jordanian series Jinn was condemned by
members of the country's government for contravening the country's moral standards, and the
country's highest prosecutor has sought to have the series banned from streaming.[343] On September
3, 2019, Netflix applied for a license to continue its streaming services in Turkey, under the country's
new broadcasting rules. The television watchdog of Istanbul, Radio and Television Supreme
Council (RTÜK) issued new guidelines, under which content providers were required to get new
license for operating in the country.[344] Netflix was later ordered by the RTÜK to remove LGBT
characters from their Turkish original series Love 101 and The Protector.[345][346] Netflix subsequently
cancelled the ongoing production of its Turkish series If Only which was also being ordered to
removed a gay character to be allowed release.[347]

Worldwide users[edit]
End of year paying VOD customers (in paying DVD customers (in millions)
millions)

Q4 2013[348] 41.43 6.77

Q4 2014[348] 54.48 5.67

Q4 2015[349] 70.84 4.79

Q4 2016[349] 89.09 4.03

Q4 2017[350] 110.64 3.33

Q4 2018[350] 139.26 2.71

Q4 2019[351] 167.09 2.21

Q1 2020[16] 182.86 N/A

Q2 2020[16] 192.95 N/A

Competitors[edit]
See also: Online DVD rental and Video on demand
Netflix's success was followed by the establishment of numerous other DVD rental companies, both
in the United States and abroad. Walmart began an online rental service in October 2002 but left the
market in May 2005. However, Walmart later acquired the rental service Vudu in 2010.[352]
Blockbuster Video entered the United States online market in August 2004, with a US$19.95
monthly subscription service (equivalent to $27 in 2019). This sparked a price war; Netflix had raised
its popular three-disc plan from US$19.95 to US$21.99 just prior to Blockbuster's launch, but by
October, Netflix reduced this fee to US$17.99. Blockbuster responded with rates as low as
US$14.99 for a time, but, by August 2005, both companies settled at identical rates.[353] On July 22,
2007, Netflix dropped the prices of its two most popular plans by US$1.00 in an effort to better
compete with Blockbuster's online-only offerings.[354] On October 4, 2012, Dish Network scrapped
plans to make Blockbuster into a competitor for Netflix's online service.[355] (Dish bought the ailing
Blockbuster, LLC in 2011, and at that point planned to maintain franchise locations as well as its
"Blockbuster on Demand" streaming service. By 2020, Blockbuster on Demand had been
discontinued, and only one Blockbuster franchise location remains in Oregon.)[356][357]
In 2005, Netflix cited Amazon.com as a potential competitor,[358] which until 2008, offered online video
rentals in the United Kingdom and Germany. This arm of the business was eventually sold to
LoveFilm; however, Amazon then bought LoveFilm in 2011.[359] In addition, Amazon now streams
movies and television shows through Amazon Video (formerly Amazon Video On Demand and
LOVEFiLM Instant).[360]
Redbox is another competitor that uses a kiosk approach: Rather than mailing DVDs, customers
pick up and return DVDs at self-service kiosks located in metropolitan areas. In September
2012, Coinstar, the owners of Redbox, announced plans to partner with Verizon to launch Redbox
Instant by Verizon by late 2012.[361] In early 2013, Redbox Instant by Verizon began a limited beta
release of its service,[362] which was described by critics as "No Netflix killer"[363] due to "glitches [and]
lackluster selection".[364]
CuriosityStream, a premium ad-free, subscription-based service launched in March 2015 similar to
Netflix but offering strictly nonfiction content in the areas of science, technology, civilization and the
human spirit, has been dubbed the "new Netflix for non-fiction".[365]
Hulu Plus, like Netflix and Amazon Prime Instant Video, "ink[s] their own deals for exclusive and
original content", requiring Netflix "not only to continue to attract new subscribers, but also keep
existing ones happy".[366]
Netflix largely avoids offering pornography, but several "adult video" subscription services were
inspired by Netflix, such as SugarInstant and WantedList.[367][368]
In Australia, Netflix most notably competes with Stan, the local SVOD competitor that only operates
in the Australian marketplace and currently undercuts Netflix on monthly pricing while using
extensive original Australian content as its major value proposition. Netflix currently holds a sizeable
lead in market share over Stan, with Netflix reaching over 11.5 million household users in Australia
in 2019 compared to Stan reaching over 2.5 million household users in the same period.[369][370] In
the Nordic countries, Netflix competes with Viaplay, HBO Nordic and C More.[371][372] In Southeast
Asia, Netflix competes with iflix,[373] Astro On the Go, iWant TFC, Sky on Demand, Singtel TV, and
HomeCable OnDemand.[374] In New Zealand, Netflix competes with local streaming companies
including Television New Zealand (TVNZ),[375] Mediaworks New Zealand, Sky Network Television,
[376]
 Lightbox,[377] Neon and Quickflix.[378] In Italy, Netflix competes with Infinity, Now TV and TIMvision.
[379]
 In South Africa, Netflix competes with Showmax.[380] In the MENA region, Netflix competes
with icflix, Starz Play Arabia, OSN's Wavo, and iflix Arabia. Also, in Brazil, Netflix competes
with Globoplay, a Grupo Globo's streaming service.
In Mexico, Televisa removed its content from Netflix in 2016 and moved it to its own streaming
service Blim.[381]
The Walt Disney Company launched their own streaming service, Disney+, in November 2019. As a
result, Disney content currently hosted on Netflix will begin to be phased out over the next couple of
years.[382][383] Disney reported in early 2020 that their subscriber count had blown past internal and
industry estimates at 50 million globally - a 22 million increase since the prior report two months
earlier.[384]

Incidents[edit]
In August 2017, an employee, after getting fired, was rampaging and destroying the interior of the
building. He was later arrested for assault and the destruction of property.[385]
In February 2019, police stormed the Netflix headquarters in Hollywood after a man with a gun was
reported wandering around the premises. The buildings were placed on lockdown.[385]
Awards[edit]
Further information: List of accolades received by Netflix
On July 18, 2013, Netflix earned the first Primetime Emmy Award nominations for original online-
only web television programs at the 65th Primetime Emmy Awards. Three of its web series, Arrested
Development, Hemlock Grove and House of Cards, earned a combined 14 nominations (nine
for House of Cards, three for Arrested Development and two for Hemlock Grove).[386] The House of
Cards episode "Chapter 1" received four nominations for both the 65th Primetime Emmy Awards
and 65th Primetime Creative Arts Emmy Awards, becoming the first webisode of a television series
to receive a major Primetime Emmy Award nomination: David Fincher was nominated in the
category of Outstanding Directing for a Drama Series.[386][387] "Chapter 1" joined Arrested
Development's "Flight of the Phoenix" and Hemlock Grove's "Children of the Night" as the first
webisodes to earn Creative Arts Emmy Award nomination, and with its win for Outstanding
Cinematography for a Single-Camera Series, "Chapter 1" became the first webisode to be awarded
an Emmy.[388] Fincher's win for Directing for a Drama Series made the episode the first Primetime
Emmy-awarded webisode.[389]
On December 12, 2013, the network earned six Golden Globe Award nominations, including four
for House of Cards.[390] Among those nominations was Wright for Golden Globe Award for Best
Actress – Television Series Drama for her portrayal of Claire Underwood, which she won at the 71st
Golden Globe Awards on January 12. With the accolade, Wright became the first actress to win a
Golden Globe for an online-only web television series. It also marked Netflix' first major acting
award.[391][392][393] House of Cards and Orange is the New Black also won Peabody Awards in 2013.[394]
On July 10, 2014, Netflix received 31 Emmy nominations. Among other nominations, House of
Cards received nominations for Outstanding Drama Series, Outstanding Directing in a Drama Series
and Outstanding Writing in a Drama Series. Kevin Spacey and Robin Wright were nominated for
Outstanding Lead Actor and Outstanding Lead Actress in a Drama Series. Orange is the New
Black was nominated in the comedy categories, earning nominations for Outstanding Comedy
Series, Outstanding Writing for a Comedy Series and Outstanding Directing for a Comedy Series.
Taylor Schilling, Kate Mulgrew, and Uzo Aduba were respectively nominated for Outstanding Lead
Actress in a Comedy Series, Outstanding Supporting Actress in a Comedy Series and Outstanding
Guest Actress in a Comedy Series (the latter was for Aduba's recurring role in season one, as she
was promoted to series regular for the show's second season).[395]
Netflix got the largest share of 2016 Emmy award nominations among its competitors, with 16 major
nominations. However, streaming shows only got 24 nominations out of a total of 139, falling
significantly behind cable.[396] The 16 Netflix nominees were: House of Cards with Kevin Spacey, A
Very Murray Christmas with Bill Murray, Unbreakable Kimmy Schmidt, Master of None,
and Bloodline.[396]
Stranger Things received 19 nominations at the 2017 Primetime Emmy Awards, while The
Crown received 13 nominations.[397]
In April 2017, Netflix was nominated for Broadcaster of the Year in the UK's Diversity in Media
Awards.
In December 2017, Netflix was awarded PETA's Company of the Year for promoting animal rights
movies and documentaries like Forks Over Knives and What the Health.
At the 90th Academy Awards, held on March 4, 2018, Netflix won the Oscar for Best Documentary
Feature for the film Icarus. During his remarks backstage, director and writer Bryan Fogel remarked
that Netflix had "single-handedly changed the documentary world". Icarus had its premiere at the
2017 Sundance Film Festival and was bought by Netflix for $5 million, one of the biggest deals ever
for a non-fiction film.[398]
Netflix became the most nominated network at the 2018 Primetime and Creative Arts Emmy
Awards with 112 nominations, therefore breaking HBO's 17-years record as most nominated
network at the Emmys, which received 108 nominations.[399][400]
On January 22, 2019, Netflix scored 15 nominations for the 91st Academy Awards, including Best
Picture for Alfonso Cuarón's Roma, which was nominated for 10 awards.[401] The 15 nominations
equal the total nominations Netflix had received in previous years. Its increased presence in the
Academy Awards has led filmmakers such as Steven Spielberg to speak out against the nomination
of streaming content. As a possible solution, Netflix is in the process of buying Grauman's Egyptian
Theatre to host events and screen its films and series.[402] However, there are no plans to roll out full
theatrical releases there.[403]

Finance and revenue[edit]


2010[edit]
In 2010, Netflix's stock price increased 219% to $175.70 and it added eight million subscribers,
bringing its total to 20 million. Revenue jumped 29% to $2.16 billion and net income was up 39% to
$161 million.[404]

2011[edit]
In April 2011, Netflix was expected to earn $1.07 a share in the first quarter of 2011 on revenue of
$705.7 million, a huge increase compared to the year-earlier profit of 59¢ on revenue of
$493.7 million, according to a survey of 25 analysts polled by FactSet Research.[405]
At their peak, in July 2011, Netflix shares were trading for $299. Following the customer
dissatisfaction and resulting loss of subscribers after the announcements by CEO Hastings that
streaming and DVD rental would be charged separately, leading to a higher price for customers who
wanted both (on September 1), and that the DVD rental would be split off as the subsidiary Qwikster
(on September 18), the share price fell steeply, to around $130.[406][407] However, on October 10, 2011,
plans to split the company were scrapped. The reason being that "two websites would make things
more difficult", he stated on the Netflix blog. On November 22, Netflix's share tumbled, as share
prices fell by as much as 7%.[408] By December 2011, as a consequence of its decision to raise
prices, Netflix had lost over 75% of its total value from the summer.[409][410] Describing their business
model as "broken", Wedbush downgraded Netflix's stock rating to "underperform", the equivalent of
sell.[411]

2014[edit]
In May 2014, Netflix increased the fee for UK subscribers by £1.[412] The price increase took effect
immediately for new subscribers, but would be delayed for two years for existing members. Netflix
applied similar increases in the United States (an increase of $1) and the Eurozone (an increase of
€1). According to Forbes,[413] "Netflix can add roughly $500 million in annual incremental revenues in
the U.S. alone by 2017 with this move" and "roughly $200–250 million in incremental revenues from
price changes in international markets". However, Reuters' Felix Salmon is critical about Netflix's
financial future, noting that "any time that Netflix builds up a profit margin, the studios will simply
raise their prices until that margin disappears".[414]

2016[edit]
In April 2016, Netflix announced it would be ending a loyalty rate in certain countries for subscribers
who were continuously subscribed before price rises.[415] Netflix spent about $5 billion on original
content in 2016;[416] this compares to a 2015 revenue of US$6.77 billion (2015).[417]

2019[edit]
In 2019, Netflix reported revenues of $20.1bn and a net income of $1.9bn. The company had total
assets of $34.0bn, primarily content assets ($24.5bn). Netflix is now considered the largest buyer of
video content globally.

2020[edit]
In 2020, during the COVID-19 pandemic Netflix reported "revenue for the quarter ending March 31,
2020 was $5.768B, a 27.58% increase year-over-year."[418]

Criticism[edit]
Main article: Criticism of Netflix

Accessibility[edit]
In 2011, Netflix was sued by the U.S. National Association of the Deaf for not
providing captioning for the deaf or hard of hearing on all of its content, citing the Americans with
Disabilities Act. Netflix later agreed to a settlement, where it would caption its entire library by 2014,
and by 2016, have captioning available for new content within seven days of release.[419] In
an unpublished decision issued 2015, the Ninth Circuit Court of Appeals ruled that the ADA did not
apply to Netflix in this case, as it is "not connected to any actual, physical place".[420] Netflix has
continued to face criticism from disability rights supporters over the quality of captioning on some of
its content.[421][422]

Broadband and energy consumption[edit]


On March 18, 2020, Thierry Breton, the European Commissioner for Internal Market and
Services urged streaming services including Netflix to cut back their service to limit the stress on
Europe's broadband networks. Confinement measures taken during the COVID-19
Pandemic increased pressure on the networks with people both working and looking for
entertainment at home.[423] Netflix responded by agreeing to reduce its streaming rate in the
European Union countries by 25% for 30 days. Although the streaming rate will be cut by 25%, users
will still be able to stream in HD and 4K with reduced image quality.[424]

Content and partnerships[edit]


Individual Netflix productions have also faced controversy over their content. In 2018, the press
argued that 13 Reasons Why glamorized mental health issues such as suicide, depression and post-
traumatic stress.[425][426][427] Scholars also accused those productions to minimize the risk of vulnerable
viewers[428] pointed out the lack of moral responsibility of Netflix.[429] Netflix was criticized for using
stock footage from the 2013 Lac-Mégantic rail disaster in Bird Box and Travelers. The footage was
subsequently replaced.[430] In January 2019, Netflix censored an episode of Patriot Act with Hasan
Minhaj in Saudi Arabia after requests by the Communications and Information Technology
Commission, citing material critical of the country (such as Mohammed bin Salman and the Saudi-
led military campaign in Yemen).[431]
The announcement that Gwyneth Paltrow's company Goop had partnered with Netflix led to
criticism, noting that the company has frequently been criticized for making unsubstantiated claims
about the effectiveness of health treatments and products that it promotes. Multiple critics argued
that granting Goop access to Netflix's platform was a "win for pseudoscience".[236][432][238][235]

Film distribution model[edit]


Netflix's distribution model for original films has led to conflicts with the legacy film industry. Some
cinemas have refused to screen films distributed theatrically by Netflix (primarily to ensure awards
eligibility), as it defies the standard three-month release window, and releases them simultaneously
on its streaming platform (although Roma was instead given a three-week run before being added to
the streaming service). Steven Spielberg, governor of the directors branch of the Academy of Motion
Picture Arts and Sciences (AMPAS), has been critical of the streaming model over the "communal",
cinema experience, but later clarified his views by arguing that viewers should have access to "great
stories", and be able to "find their entertainment in any form or fashion that suits them".[433][434][435][436] In
April 2019, AMPAS voted against the possibility of changes to the Academy Awards eligibility criteria
to account for streaming services such as Netflix, although AMPAS president John Bailey did state
that the organization would "further study the profound changes occurring in our industry".[437]
In 2018, Netflix pulled out of the Cannes Film Festival, in response to new rules requiring
competition films to have been released in French theaters. The Cannes premiere of Okja in 2017
was controversial, and led to discussions over the appropriateness of films with simultaneous digital
releases being screened at an event showcasing theatrical film; audience members also booed at
the Netflix vanity plate at the screening. Netflix's attempts to negotiate to allow a limited release in
France were curtailed by organizers, as well as French cultural exception law—where theatrically
screened films are legally forbidden from being made available via video-on-demand services until at
least 36 months after their release.[438][439][440]
Beginning at the 2019 Toronto International Film Festival, films may now be restricted from
screening at Scotiabank Theatre Toronto—one of the festival's main venues—and screened
elsewhere (such as TIFF Bell Lightbox and other local cinemas) if distributed by a service such as
Netflix. Organizers stated that the restriction was due to a policy enforced by the facility's owner and
operator, Cineplex Entertainment, requiring adherence to 3-month theatrical windows.[441]

Cuties[edit]
In 2020 Netflix faced backlash for promoting a film with marketing materials seen to "sexualize
minors" and "normalize pedophilia.” Film-makers claim that this movie is meant to raise awareness
on how young girls are pressured to act in sexually explicit ways.[442] But through the provocative,
adult-dancing the young girls were required to do and the revealing outfits these child actors wear for
"costume," this movie becomes exactly what it claims to be against. Netflix used a promotional
poster showing eleven-year-old girls in skin-tight, revealing clothes posed provocatively [443] and a
description explicitly stating they were a "twerk" crew of eleven-year-old girls.[444] In response to public
outrage and disapproval, Netflix has changed the promotional poster and description to be less
sexual/provocative. After calls to completely remove the film, Netflix rated this movie TV-MA to
reflect its sexual nature, meaning it is not available for children, and the recommended audience age
listed is now 16+. Almost a million signatures have been added to petitions to remove this film from
Netflix.[239]
This film has gained further criticism for the fact that it is the first Netflix Film focused on Black girls
and it was done in such a distasteful way. Criticism has come from all corners of the streaming
service's customer base including parents, children, childless adults, and public figures such as
writer Claire Heuchan. [445]

Tax avoidance[edit]
According to a blog post by the Institute on Taxation and Economic Policy, Netflix reported its largest
ever profit in the US for 2018, but paid nothing in federal or state tax.[446] The explanation is that US
Tax law allows companies to claim tax credit on foreign earnings and thus avoid double taxation.
[447]
 U.S. Senator Bernie Sanders has criticized Netflix for this both on Twitter[448] and at a Fox News
town hall event on April 15, 2019.[449] A spokesperson from Netflix has addressed such claims as
"inaccurate", but no evidence has been provided that Netflix did pay any state or federal taxes.[450]
Allegations of tax evasion are also being investigated by Italian prosecutors. While Netflix doesn't
have a headquarters in Italy, the prosecution claims that the digital infrastructure such as servers
and cables amounts to a physical presence in the country.[451]
Viewership figure claims[edit]
Netflix has been called out by some media organizations and competitors for only rarely and
selectively releasing its ratings and viewer numbers. A notable instance of this involves the film Bird
Box. A week after its release, Netflix claimed that it had the biggest seven-day viewing record of any
of its original films at over 45 million viewers, but did not provide data to validate it.[452] It also was not
possible to accurately compare its week-long success to a major cultural event such as the Super
Bowl or Academy Awards or to a blockbuster film run.[453] In June 2019, Netflix claimed that
30,869,863 accounts watched the Adam Sandler- and Jennifer Aniston-starring Netflix original
film Murder Mystery, despite it being critically panned, making it the biggest "opening weekend" for a
Netflix original film. If the film had been in theaters it would have made the equivalent of $556 million
based on a $9 ticket price. Critics cast doubt that this number of people would have watched the film
given that it would have made the film more popular than the finale of Game of Thrones.[454]
In the fourth quarter of 2019, Netflix changed the method it used to estimate viewers for a show.
Before this, Netflix counted a viewer towards viewership if they watched 70% of the show; with the
new change, a viewer need only watch two minutes of the show to count. Netflix started the two-
minute metric indicated that the viewer chose to watch the show, and thus counted in its viewership.
This also eliminated factors such as the length of the work, so that both short and long works would
be treated equally. In a statement to shareholders, Netflix estimated this increased viewership by
35% on average.[455] This new metric was criticized as commentators felt two minutes was far too little
of any show to engage a viewer, and instead the move by Netflix was to artificially increase
viewership to put their numbers on par with television networks and movie ticket sales, such as
trying to compare viewership of The Witcher with that of HBO's Game of Thrones.[456][457]

Promotion of pseudoscience[edit]
Netflix has long been criticized for offering content that presents
wellness pseudoscience and conspiracy theories as true.[458] Health professionals have quickly
corrected several arguments made by the 2017 documentary What the Health, arguing the movie
exaggerates the negative effects of eating eggs and downplays the risks of a diet rich in sugar.
[459]
 The Australian Medical Association (AMA) called on Netflix to remove from its catalog The Magic
Pill, a documentary narrated by celebrity chef Pete Evans claiming a ketogenic diet helps cure a
variety of diseases, such as asthma and cancer. While some studies hint that some benefits can be
gained from the diet, they did not support the claims made in the movie and the AMA insisted that
promoting the diet without the supervision of qualified health professionals posed grave risks of
developing nutritional deficiencies.[460]
These accusations intensified in 2020, with the platform presenting original programming such
as The Goop Lab and Down to Earth with Zac Efron.[458][461] From the moment it signed a deal
with Gwyneth Paltrow's lifestyle brand Goop in February 2019, Netflix faced widespread criticism.
The deal was repeatedly described as "a win for pseudoscience."[235][236][237][238] Once The Goop Lab was
available for review, numerous media outlets published harsh criticism of Netflix's decision to
promote Goop.[462][463] [464][465][466][467] Efron's show was also heavily criticized for promoting pseudoscience
and giving questionable health advice to its viewers.[468][469]

Effects and legacy[edit]


The rise of Netflix has affected the way that audiences watch televised content. Netflix's CPO Neil
Hunt points out that the Internet allows users the freedom to watch shows at their own pace, so an
episode does not need cliffhangers to tease the audience to keep tuning in week after week because
they can just continue into the next episode.[470] Netflix has allowed content creators to deviate from
traditional formats that force 30-minute or 60-minute time slots once a week, which it claims gives
them an advantage over networks. Their model provides a platform which allows varying run times
per episode based on a storyline, eliminates the need for a week to week recap, and does not have
a fixed notion of what constitutes a "season". This flexibility also allows Netflix to nurture a show until
it finds its audience, unlike traditional networks which will quickly cancel a show if it is unable to
maintain steady ratings.[471]
Netflix has strayed from the traditional necessary production of a pilot episode to establish the
characters and create arbitrary cliffhangers to prove to the network that the concept of the show will
be successful. Kevin Spacey spoke at the Edinburgh International Television Festival about how the
new Netflix model was effective for the production of House of Cards: "Netflix was the only company
that said, 'We believe in you. We've run our data, and it tells us our audience would watch this
series.'" Traditional networks are unwilling to risk millions of dollars on shows without first seeing a
pilot, but Spacey points out that 113 pilots were made in 2012; 35 of them were chosen to go to air,
13 were renewed, and most are gone now. The total cost of this is somewhere between $300 million
and $400 million, which makes Netflix's deal for House of Cards extremely cost-effective, according
to Spacey.[472] Netflix's subscription fee also eliminates the need for commercials, so they do not need
to appease advertisers to fund their original content, a model similar to pay television services such
as HBO and Showtime.
The Netflix model has also affected viewers' expectations. According to a 2013 Nielsen survey, more
than 60-percent of Americans said that they binge-watch shows, and nearly 8 out of 10 Americans
have used technology to watch their favorite shows on their own schedule.[473] Netflix has continued
to release its original content by making the whole season available at once, acknowledging
changing viewer habits. This allows audiences to watch episodes at a time of their choosing rather
than having to watch just one episode a week at a specific scheduled time; this effectively gives its
subscribers freedom and control over when to watch the next episode at their own pace.
https://en.wikipedia.org/wiki/Netflix

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