Reed Hastings and Marc Randolph launched Netflix in 1997 as a DVD-by-mail service.
The company began in Scotts Valley, California, during the period when DVDs were replacing VHS tapes as a consumer format. Netflix initially operated as an online DVD rental and sales business. Its rental model used a subscription system and later became known for allowing customers to keep DVDs without traditional late fees.
Netflix introduced its streaming service in 2007, changing the company from a physical-media rental business into a global internet entertainment platform. Hastings is often described as Netflix’s best-known co-founder, but Marc Randolph was also central to the company’s creation and served as its first chief executive. A common mistake is to identify Netflix as a streaming-first company; streaming came a decade after its 1997 launch.