Netflix was founded in 1997 by Reed Hastings and Marc Randolph as a company that initially rented DVDs by mail.
The business began in Scotts Valley, California, and launched its DVD-rental website in 1998. Netflix later introduced a subscription model that let customers keep DVDs without individual late fees. That model helped distinguish it from traditional video-rental stores, whose revenue depended heavily on per-rental charges and penalties.
Netflix started streaming content in 2007, transforming from a physical-media rental company into a global internet entertainment service. It began producing original programming with shows such as House of Cards in 2013. The company's evolution made it one of the most prominent technology and media businesses by revenue, subscribers, and market value.
A frequent mistake is crediting only Hastings for Netflix's founding. Marc Randolph was a co-founder and the company's first chief executive, while Hastings later became its best-known long-serving CEO. Netflix also predates Disney+, which launched in 2019.