Netflix established in Scotts Valley California, in August of 1997.
The company founders are Reed Hastings and Marc Randolph. The idea of Netflix created where one of the founders, Reed Hastings had to pay a late submission fee to a rental store for $40. From the frustration of a late fee, on 1998 Netflix launched their service, an online DVD rental service through a website called netflix.com.
A year later in 1999, Netflix implemented an innovative feature on their online DVD rental service which is a subscription service. With their subscription service, Netflix allows their user for unlimited DVD rentals with a flat monthly fee. Great features that Netflix offers in their online DVD rental has bringing disruptive innovation into the market. According to Christiansen (2012), disruptive innovation is an innovation create a disruption in the current market and uprooting the current market leader and alliances. Netflix innovation on online DVD rental service is the sign of disruption to other business. On 2007 Netflix created a disruptive innovation one more time by creating an online video streaming services which implemented the same model with their online rental where the customers can access to the extensive catalog of the movie through streaming over the internet and charge their user with a flat monthly price.
By, created their innovation from the first time Netflix and adding it with another innovation Netflix innovation destroyed another competitor such as blockbuster (McAlone, 2015). By 2010, Netflix subscription service has reaching 20 million subscribers. Netflix also realized streaming technology could be accessed through an internet-connected device. Netflix is partnering with consumer electrics manufacturing such as Sony PlayStation, Microsoft Xbox, Apple, and Nintendo to make Netflix services running on consumer commercial electronic devices. In 2013, Netflix started to launch their own programs. By their own programs, Netflix has been nominated for 31 Primetime Emmy nominations (Netflix, n.
d) starting from that time Netflix has been focusing on their own program. In 2017 Netflix planning to spend $6 billion on producing and acquiring their original program (Williams, 2017). up to date, Netflix service is available worldwide except China for their online streaming service, and Netflix keep their online rental service exclusively available only in united states