Netflix became a publicly traded company in 2002, later growing into a major market-cap entertainment business.
Netflix held its initial public offering on May 23, 2002, on the Nasdaq stock exchange. The company had been founded in 1997 by Reed Hastings and Marc Randolph and initially operated a DVD-by-mail rental service. Its subscription model differed from traditional video-rental stores by allowing customers to keep discs longer and exchange them through the mail.
Netflix began its streaming service in 2007, first as an additional feature for subscribers. Streaming eventually became the company’s central business, and Netflix expanded from licensed programming into original films and series such as House of Cards and Stranger Things.
The 2002 IPO should not be confused with the 2007 streaming launch or the company’s earlier founding. A public listing made Netflix shares tradable, while its later market capitalization reflected investors’ changing assessment of its growth and profitability.