Netflix began its business by renting DVDs by mail.
Reed Hastings and Marc Randolph founded Netflix in 1997. The company initially tested a DVD-rental model in the United States, using the postal system to send discs to customers. DVDs were thinner and easier to mail than VHS cassettes, making them practical for a nationwide rental service.
Netflix introduced a subscription plan in 1999 and later became known for allowing customers to keep DVDs without traditional late fees. Its recommendation system and online account management helped distinguish it from physical video-rental stores.
The company began streaming films and television programs in 2007, gradually shifting its focus away from mailed discs. Netflix also expanded into original programming, with House of Cards among its early major original series. A frequent mistake is saying Netflix started as a streaming company; streaming became central only after the DVD-by-mail business had already been established.