In 2000, Netflix was nothing more than a movie rental service. The system used by Netflix is to request subscription fees every month, and customers are free to rent DVDs without limitation in number and time. At that time, Netflix only had 300,000 subscribers, and still relied on postal services to send DVDs that they wanted to rent. Hastings flew to Dallas to meet Blockbuster, who at the time, was a giant rental film with 7,700 stores worldwide. He wanted to invite Blockbuster to work with Netflix. Aside from that, perhaps you also need to know how to change country on netflix account
“We even offered to sell 49 percent of our shares and change our name to Blockbuster website,” Hastings told Ken Auletta of the New Yorker. “We want to be their online service.” However, at that time Blockbuster was not interested. They have not seen any threats from digital media.
Blockbuster only realized the dangers of digital media in 2004. They then made their own online subscription service. Unfortunately, they were late. “If they launch this service two years before, we will definitely lose,” Hastings said.
In 2005, Netflix had 4.2 million customers, and this number continues to grow. At that time, studios in Hollywood began offering their films for rent by Netflix. The existence of Netflix succeeded in becoming another source of income for them. In addition, with Netflix, they no longer depend entirely on Blockbuster.
Netflix began broadcasting movies and TV series streaming directly to PC in 2007. In November 2013, Blockbuster went bankrupt. While a month earlier, Netflix announced that it had 31 million customers.
One of the keys to Hastings’s success was because he realized that there was dissatisfaction with customers while watching traditional TV broadcasts. This dissatisfaction is the existence of advertisements.
Netflix has no ads. The source of their pure income comes from the subscription fees of their customers. By paying a sum of money, people can watch the movies or TV series they want, without having to follow the schedule of the TV station, on any gadget they have, without having to watch advertisements.