The curious Netflix story you'd give to have your own tv show or movie



Netflix is one of the best-known entertainment companies that exist today and succeeds in all the countries where it sits. But her business model didn't start the way we know her, and in this report, we're going to go through her whole story.

We don't need to survey to say that almost everyone in our country knows what Netflix is. This is available to few companies, let alone foreigners, but it is a consequence of several aspects, such as the aggressive promotion it carries out, the success of some series and other factors that have made it succeed here and in almost every country where it has arrived.

But Netflix didn't start as the streaming platform we know today and it hasn't been as easy as you can think of at first, during its history it has had some moves that can be considered unexpected. Also, changes have accelerated over the past year for obvious reasons.

But what's Netflix's secret? We're going to try to uncover it with this story in which we're going to talk about your whole story, from 23 years to today.



When I was mailing DVDs

Netflix was born in 1997 in California, USA, and its creation can be taken as a sign of the transition we have experienced in our leisure over the past few decades.

It is not known to what extent it is a true or simple myth, but it is said that he was born by the hand of Reed Hastings when he had to pay 40 dollars in a penalty for late returning the film Apollo 13 to one of the Blockbuster video clubs. Faced with this situation, probably similar to that experienced by so many other people at the time, he decided to leap to create a chain of video clubs without fines if the return was delayed.

Whether or not the anecdote was true, Reed Hastings and Marc Randolph created their e-business in 1997, an online platform that had a subscription service in which customers chose a movie that came home by mail along with an envelope with the money paid to return the DVD whenever they wanted. Once the film returned, they could order more, and as many as they wanted each month thanks to the cost of the subscription.

This service was the company's main one until 2007 and during its highest business volume was touted as"the world's largest online DVD rental service". Although, unsurprisingly, the increase in internet speed and the improvement of equipment changed everything.



2007, Netflix reinvents itself

As the years passed, technology changed and began accelerating the speed of internet connection, which led to many businesses disappearing. Among them, video clubs were one especially damaged by the growth of piracy. In that context, Netflix had some elements against it, as its most identifying factor was a drag: in a 2.0 world, the mail delay was excessive.

Faced with this situation they decided to give the company a spin and start with the VOD system; that is, video on demand. It was in 2007 and they soon saw that there was a very high growth space there. Failures like Yahoo!'s when buying broadcast.com had made many cautious, but that was the time and a few months after launching the desktop platform they were already willing to have agreements with other companies so that Netflix could be watched on different devices.

This did not mean that DVD submission was abandoned, but the opening of a new line of business. In 2019, the 5 billionth DVD was sent to a customer and still retained 2.4 million subscribers, few compared to the streaming service, where more than 150 million are added. If you want to know how it works today, here's the active Netflix DVD Twitter account.



More devices and more countries mean more subscribers

The work of weaving ties with other companies was very important during the early years. We are talking about a time when Smart TVs were in an early stage and few customers had them, but they knew how to find other spaces in which to offer the subscription service in addition to computers.

Xbox, Nintendo Wii, iPad, iPhone and different Smart TVs began to have Netflix services thanks to the agreements and an application that continued to grow in usability and options, something that still happens today, as new developments continue to be added day by day.

Alongside this deployment, profits were also reaching, in 2013 it increased its net profit by more than 500% and the company began planning mass landing in Europe, which took no more than two years.

October 20, 2015, was the day Netflix premiered in Spain and the rest is history, which you could say. In all countries, it achieved a significant increase in users and together with the expansion of new technologies in the form of smart TVs, tablets, computers, mobiles and any screen where it can be enjoyed has achieved great success.

But this has always been supported by two sections. On the one hand, there is the one that stands in the series and the great successes achieved with House of Cards, Orange Is the New Black or Narcos, which have become an indissoluble part of the Netflix brand. But behind it lies all of Netflix's infrastructure and how they've been able to take advantage of aggressive ad campaigns and data, as well as tax advantages.

A journey full of controversy

But Netflix's journey has not been absent from controversy. While the platform shows a totally progressive idea in its productions, where there has always been an attempt to give voice to groups and be multicultural, advertising campaigns have been full of controversies.

She is well remembered for her aggressive advertising campaign of Narcos en Sol, wherewith a clear focus on provocation she placed the face of the character, Pablo Escobar, under the slogan "Oh, white Christmas" in a clear reference to the drug trafficking business. A semantic game that didn't please everyone and gave for a thousand opinion columns in the media.

But this was somewhat overlapped by another debate of which more details have been known. Netflix takes advantage of the fact that the Netherlands is a country with a low tax burden and, despite the turnover, it has in our country, the taxes it leaves are small. So much so, that he has been paying in Spain 3,146 euros in taxes, the same as any worker with a salary of 24,000 euros per year.

Cinemas and the pandemic

In recent years, from Netflix, there is an effort to be among the most important film producers. To achieve this he has not only hired prestigious directors, such as Alfonso Cuarón or Martin Scorsese, they also want and need the approval of the awards to reach the public.

With Rome, great success was achieved, but in the face of the difficulty for cinemas to program their films, they are looking for great trade agreements and the purchase of cinemas that give them the key to make a film nominable, something that until now was essential in the Academy Awards.

But the arrival of the coronavirus pandemic has changed everything. After a few months in which the number of subscribers has grown significantly and where streaming platforms have been placed as the most preferred way to enjoy leisure, we now have a future that can be promising for Netflix, but it also raises doubts.

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