Netflix began as a DVD-by-mail service founded by Reed Hastings and Marc Randolph in 1997.
The company was incorporated in August 1997 and launched its DVD rental service in 1998. Customers could order DVDs online and receive them by mail, avoiding the late fees and store visits associated with many traditional rental businesses.
Netflix introduced a subscription model with no late fees in 1999. It later shifted its main business toward streaming, launching its streaming service in 2007.
Netflix is often remembered primarily as a streaming company, but its original business involved physical DVDs. Blockbuster was a major video-rental rival, not the company that founded Netflix.