Netflix is one of the fastest growing companies in the United States. With over 36.3 million subscribers, Netflix has grown in huge numbers since being founded in 1997. Its headquarters are located in Los Gatos, California.
The idea of Netflix came to co-founder Reed Hastings when he was charged an insane amount of money for late video rentals that he had accrued. He liked the idea of renting movies with no time frame on getting them back to the owners.
In 2005, about 35,000 films were available. Netflix was then shipping out over 1 million DVDs on a daily basis. In 2007, they set a record and shipped out their 1 billionth DVD and then introduced video-on-demand through the internet. In 2010, Netflix launched services in Canada that were streaming only. In 2011, these services were introduced in Latin America and in 2012 the United Kingdom, Ireland, Norway, Denmark, Sweden, and Finland were finally a part of the Netflix family. This year, the Netherlands will also become a part of Netflix.
Netflix has always been proud of itself for becoming the number one subscription based movie and television show rental service that offers media to all of its subscribers through the internet and through the postal service. In order for Netflix to stream movies and television shows, rights to these movies and shows must be bought and paid for by the company. This is where the entire process of selection begins. Netflix cannot add movies and television shows unless it owns the rights to them. Otherwise, there would be a few law suits on their hands. Currently, Netflix owns rights to movie and television shows from these companies:
- Rogue Pictures
- Open Road Films
- Film District
- The Weinstein Company
- Marvel Studios
- DreamWorks Classics
- Warner Brothers
- CBS Television Distribution
- Time Warner
Ted Sarandos is the Chief Content Officer for Netflix and he is the person who is mainly in charge of determining what shows and movies are streamed on Netflix. One of his other focuses at Netflix is trying to make licensing much more global so that the UK and US will both be able to stream the same shows and movies.
Sarandos chooses shows and movies based on many things. He takes feedback from subscribers on a daily basis. He keeps up with what subscribers watch and how they rate it. He looks at how many people watch an entire series in one sitting or how many re-watch movies and shows. Viewers are now able watch new girl online, since it is the newest series to be added to the Netflix circulation.
He is the genius behind many great shows like House of Cards, Hemlock Grove, and the new season of Arrested Development. He is currently in talks with Ron Howard about the Dark Tower and with the makers of Hemlock Grove for its second season.
Sarandos determines what movies and shows to stream also by looking at who is watching cult favorites and who is not, who is watching thrillers and who is watching romantic comedies. Netflix looks at the markets for tweens and adults based on what they are watching and what actors and directors they have rated and watched more of. Sarandos is excited about Phase 2 of Netflix when more new shows and movies will start streaming in 2014, including a Sci-Fi show called Sense8, which will be a first for Netflix.