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In 2004, Blockbuster introduced a DVD rental service, which not only allowed users to check out titles through online sites but allowed for them to return them at brick-and-mortar stores.[57] By 2006, Blockbuster's service reached two million users, and while trailing Netflix's subscriber count, was drawing business away from Netflix. Netflix lowered fees in 2007.[55] While it was an urban legend that Netflix ultimately \"killed\" Blockbuster in the DVD rental market, Blockbuster's debt load and internal disagreements hurt the company.[57]
In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. However, at that time it only had 1,000 films available for streaming, compared to 70,000 available on DVD.[70] The company had for some time considered offering movies online, but it was only in the mid-2000s that data speeds and bandwidth costs had improved sufficiently to allow customers to download movies from the net. The original idea was a \"Netflix box\" that could download movies overnight, and be ready to watch the next day. By 2005, Netflix had acquired movie rights and designed the box and service. But after witnessing how popular streaming services such as YouTube were despite the lack of high-definition content, the concept of using a hardware device was scrapped and replaced with a streaming concept.[71]
On January 6, 2010, Netflix agreed with Warner Bros. to delay new release rentals 28 days prior to retail, in an attempt to help studios sell physical copies, and similar deals involving Universal Pictures and 20th Century Fox were reached on April 9.[82][83][84] In July 2010, Netflix signed a deal to stream movies of Relativity Media.[85] In August 2010, Netflix reached a five-year deal worth nearly $1 billion to stream films from Paramount, Lionsgate and Metro-Goldwyn-Mayer. The deal increased Netflix's annual spending fees, adding roughly $200 million per year. It spent $117 million in the first six months of 2010 on streaming, up from $31 million in 2009.[86] On September 22, 2010, the company first began offering streaming service to the international market, in Canada.[87][88] In November 2010, Netflix began offering a standalone streaming service separate from DVD rentals.[89]
On August 23, 2012, Netflix and The Weinstein Company signed a multi-year output deal for RADiUS-TWC films.[121][122] In September 2012, Epix signed a five-year streaming deal with Netflix. For the initial two years of this agreement, first-run and back-catalog content from Epix was exclusive to Netflix. Epix films came to Netflix 90 days after premiering on Epix.[123] These included films from Paramount, Metro-Goldwyn-Mayer and Lionsgate.[124][125]
In September 2020, Netflix signed a multi-million dollar deal with the Duke and Duchess of Sussex. Harry and Meghan agreed to a multi-year deal promising to create TV shows, films, and children's content as part of their commitment to stepping away from the duties of the royal family.[251][252] In September 2020, Hastings released a book about Netflix culture titled No Rules Rules: Netflix and the Culture of Reinvention, which was coauthored by Erin Meyer.[253] In December 2020, Netflix signed a first-look deal with Millie Bobby Brown to develop and star in several projects including a potential action franchise.[254]
In July 2021, Netflix hired Mike Verdu, a former executive from Electronic Arts and Facebook, as vice president of game development, along with plans to add video games by 2022.[267] Netflix announced plans to release mobile games which would be included in subscribers' plans to the service.[268] Trial offerings were first launched for Netflix users in Poland in August 2021, offering premium mobile games based on Stranger Things including Stranger Things 3: The Game, for free to subscribers through the Netflix mobile app.[269]
On October 13, 2021, Netflix announced the launch of the Netflix Book Club, where readers will hear about new books, films, and series adaptations and have exclusive access to each book's adaptation process. Netflix will partner with Starbucks to bring the book club to life via a social series called But Have You Read the Book. Uzo Aduba will serve as the inaugural host of the series and announce monthly book selections set to be adapted by the streamer. Aduba will also speak with the cast, creators, and authors about the book adaptation process over a cup of coffee at Starbucks.[292][293] Through October 2021, Netflix commonly reported viewership for its programming based on the number of viewers or households that watched a show in a given period (such as the first 28 days from its premiere) for at least two minutes. On the announcement of its quarterly earnings in October 2021, the company stated that it would switch its viewership metrics to measuring the number of hours that a show was watched, including rewatches, which the company said was closer to the measurements used in linear broadcast television, and thus \"our members and the industry can better measure success in the streaming world.\"[294] On November 16, 2021, Netflix announced the launch of \"Top10 on Netflix.com\", a new website with weekly global and country lists of the most popular titles on their service based on their new viewership metrics.[295]
Following the 2022 Russian invasion of Ukraine, Netflix suspended its operations and future projects in Russia.[317][5] It also announced that it would not comply with a proposed directive by Roskomnadzor requiring all internet streaming services with more than 100,000 subscribers to integrate the major free-to-air channels (which are primarily state-owned).[318] A month later, ex-Russian subscribers filed a class action lawsuit against Netflix.[319][320]
Distributors that have licensed content to Netflix include Warner Bros., Universal Pictures, Sony Pictures Entertainment and previously The Walt Disney Studios (including 20th Century Fox). Netflix also holds current and back-catalog rights to television programs distributed by Walt Disney Television, DreamWorks Classics, Kino International, Warner Bros. Television and CBS Media Ventures, along with titles from other companies such as Allspark (formerly Hasbro Studios), Saban Brands, and Funimation. Formerly, the streaming service also held rights to select television programs distributed by NBCUniversal Television Distribution, Sony Pictures Television and 20th Century Fox Television.
In July 2021, Netflix hired Mike Verdu, a former executive from Electronic Arts and Facebook, as vice president of game development, along with plans to add video games by 2022.[381] Netflix announced plans to release mobile games which would be included in subscribers' plans to the service.[382] Trial offerings were first launched for Netflix users in Poland in August 2021, offering premium mobile games based on Stranger Things including Stranger Things 3: The Game, for free to subscribers through the Netflix mobile app.[383]
On October 1, 2008, Netflix offered access to its service via a public application programming interface (API).[400] It allowed access to data for all Netflix titles, and allows users to manage their movie queues. The API was free and allowed commercial use.[401] In June 2012, Netflix began to restrict the availability of its public API.[402] They instead focused on a small number of known partners using private interfaces, since most traffic came from those private interfaces.[403] In June 2014, Netflix announced they would be retiring the public API; it became effective November 14, 2014.[404] They then partnered with the developers of eight services deemed the most valuable, including Instant Watcher, Fanhattan, Yidio and Nextguide.[405]
On July 18, 2013, Netflix earned the first Primetime Emmy Award nominations for original streaming programs at the 65th Primetime Emmy Awards. Three of its series, Arrested Development, Hemlock Grove and House of Cards, earned a combined 14 nominations (nine for House of Cards, three for Arrested Development and two for Hemlock Grove).[418] The House of Cards episode \"Chapter 1\" received four nominations for both the 65th Primetime Emmy Awards and 65th Primetime Creative Arts Emmy Awards, becoming the first episode of a streaming television series to receive a major Primetime Emmy Award nomination. With its win for Outstanding Cinematography for a Single-Camera Series, \"Chapter 1\" became the first episode from a streaming service to be awarded an Emmy.[418][419][420] David Fincher's win for Directing for a Drama Series for House of Cards made the episode the first from a streaming service to win a Primetime Emmy.[421]
The company will also launch its own ESPN video streaming service in early 2018. The platform, which will feature about 10,000 sporting events each year, will have content from the MLB, NHL, MLS, collegiate sports and tennis' Grand Slam events.
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