Although Netflix has been heard of as streaming video portal a few years ago, the company has been existing for over 20 years, the origins are dated at 1997. At the beginning it was a traditional cassette tape rental, and later on a DVD rental with a mailing option, which was quite new at that time. You could order your favorite movies online, and Netflix sent them to you by traditional mail. After watching the movies, clients sent back the DVDs by post , and Netflix charged for it several bucks. 2007 was a breakthrough for the company. First of all, the company boasted that it has already delivered more than one billion CDs by mail order, and in the same year they introduced the first content in the form of video streaming.
Netflix has been breaking records for several years, such as, for example, the stock market valuation, the amount of investment in new content or the number of subscribers. It is estimated that Netflix subscribers amount to 120 million people around the world. Taking into account that most accounts are used by several people, the number of Netflix recipients is slowly approaching half a billion. The company is already valued at over $ 120 billion and is year by year an increasingly serious threat to traditional cable networks. These are aware of the competition in the form of a large monopoly of on-demand content provider and they themselves introduce similar solutions to the offer. It seems to me that the days of traditional cable TV are already counted and their agony will not be long.
At the beginning of 2018, Netflix announced that this year it intends to invest about $ 8 billion in new content in just one year! In 2017, Netflix spent $ 6 billion on this purpose. These are very large numbers, and this means that every year its portfolio will be richer. A smart strategy for the series’ premieres causes that every month there are some new good shows introduced and it is difficult to resign from subscription.
Analysts predict that Netflix will at least double its value in the next 10 years. Interestingly, it is generating financial losses all the time, but the company is backed by investors who donated billions of dollars in several financing rounds. Analysts say Netflix will have a $ 3 billion loss this year, but in 2021 it will be $ 4 billion profit. So far, Netflix does not offer its services in China, and it is a market with huge potential that will certainly be exploited in the future.