Netflix, a major entertainment company by market capitalization, began in 1997 as a DVD-rental business founded by Reed Hastings and Marc Randolph.
Hastings and Randolph established Netflix in Scotts Valley, California, in 1997. The company initially tested a DVD-rental model that used the postal service, a practical alternative to renting videotapes because DVDs were lighter and easier to mail.
Netflix launched its website in 1998 and later introduced a subscription model that offered unlimited rentals without traditional late fees. In 2007, it began streaming films and television programs over the internet, eventually shifting its identity from a rental service to a global entertainment platform.
Reed Hastings is more widely associated with Netflix's later growth, while Marc Randolph served as the company's first chief executive. Ted Sarandos joined much later and became a major content leader, but he was not Netflix's co-founder.