Today, Netflix is one of the most famous streaming service of the world and I’m sure that most of you use it. But how much do you actually know about Netflix? The creation of Netflix began in the 90s, at a time when cinema was at its height, especially with the beginning of blockbusters; films that have been very successful. People could only discover these films in the cinema or on television, the only solution to watch them again was to buy or rent VHS in video clubs. However, at that time, there was not only the cinema, there was also the beginning of the Internet.

First, the Netflix story begins with Mark Randolph. This man did a lot of things which helped him to create Netflix. For example, he has a degree in geology which helped him to have a good ability to express himself. After that, he sold music CDs by mail order which helped him to understand what customer relationship was and which taught him marketing techniques. Finally, Mark created a magazine aimed at MAC users. These three experiences allowed him to become someone who knows how to create a company and manage a start-up. Mark Randolph then began to create many companies and moved to California. The last start-up that he will have created is bought by a company called Pure Software. these two companies will merge and Mark Randolph will meet his new director: Reed Hastings.

Mark offered Reed a lot of ideas about selling items on the internet. After many proposals such as shampoo, baseball bats, or toothpaste, Mark Randolph comes up with the idea of renting videotapes. After much thought, Reed Hastings understood that if they wanted to compete with Blockbuster, the biggest videotape seller at this time, they were going to have to rent videotapes on the internet. Mark Randolph and Reed Hastings so starts to think about a company name and on August 29, 1997, Mark Randolph and Reed Hastings founded Netflix.

They will quickly face two problems. First, the videotapes were very heavy and therefore cost a lot of money when they were sent. Secondly, their size made storage difficult. They will therefore take the risk of betting everything on a new technology, the DVD. This was smaller and lighter, and therefore easier to send and store. It was also more modern which allowed Netflix to take a big lead over Blockbuster, which was at that time, known throughout the United States. In an interview in 2018, Reed Hastings admitted that he didn't regret this decision, saying, "Most entrepreneurial ideas will seem crazy, stupid, and uneconomic, and then they turn out to be right." (Reed Hastings) The only problem with DVDs was that only 127 movies were available in this form. So, during one year, Mark Randolph and Reed Hastings created the Netflix website, while they wait for new DVD movies to come out and people to buy DVD players. In 1998, the Netflix website was established and people were convinced by movie studios to buy DVD players. But Reed Hastings had another revolutionary idea. So, in September 1999, he announced that Netflix would henceforth be by subscription. This system propels Netflix by making it reach the threshold of 600,000 subscriptions.

The only problem was that Netflix could not exceed the number of 15-20 DVDs rented per day. It would have been difficult to be profitable for Mark Randolph and Reed Hastings if they exceeded that limit. In fact, they were selling 10,000 a day. Because of this, Reed and Mark are in debt of $ 50 million and are forced to resell Netflix. The only person who could buy Netflix is John Antioco, the CEO of Blockbuster. Unfortunately, he declined the offer saying that Netflix will never work. To get out of this situation, Reed Hastings uses all his knowledge about artificial intelligence and develops an algorithm allowing Netflix to know which movies users will like or not. This new invention will allow Netflix to repay its debt and reach one million subscriptions in June 2003.

In 2004, Mark Randolph, believing he had accomplished his goal, left Netflix. Years later, realizing what he created Mark Randolph said: “The real story of Netflix is complicated: an epic tale full of struggle, disappointment, drama, humor, and achievement.”(Mark Randolph)  In 2007, Reed Hastings again took a risk by betting everything on streaming. Thanks to this decision, Netflix reached 20 million subscriptions in 2011.  Reed Hastings was sure of his decision and knew the consequences. We can see that when he said in 2009: “There is a revolution happening, and within two years I think that Wi-Fi and Netflix will be built into all the televisions.” (Reed Hastings) Since that day, this number has only increased to reach today, more than 200 million subscriptions.

In conclusion, despite all the difficulties that Mark Randolph and Reed Hastings have encountered, they have always found solutions. This led them to the creation of one of the biggest streaming platforms that you necessarily know.