Paul2:44
So, the Netflix saga told in 2 minutes flat. 2 minutes flat, it's impossible but Paul will take up the challenge. If he forgets things, you tell us.
I will probably forget a lot of things. So, first Netflix, like any giant, it started from a simple idea. Before, when you wanted to watch a movie, you went to the video rental store on your street, you had to move, there wasn't much choice, and if you returned them late, you paid penalties. I've experienced that too, believe it or not. Anyway, it was an annoying experience. But in 1997, a young computer entrepreneur named Reed Hastings had an idea: a DVD-on-demand system for $20 a month. Americans could order as many DVDs as they wanted per day without late fees. DVDs are sent by mail in those famous red envelopes.
Go to netflix.com, make a list of the films you want to see, and in 24 hours, you'll receive the DVD. You keep it as long as you want, without paying penalties. And when you've finished watching everything, you take these prepaid envelopes, send back the DVDs to us, and we send you others. It's easy.
Netflix takes off and soon has about fifty warehouses full of DVDs all over the United States. A thriving but rudimentary business.
All DVDs are inspected to check for scratches, and after this handling, they are re-enveloped, ready to be sent.
DVDs will die as quickly as they appeared. No problem, Netflix always has a step ahead. 10 years after its launch, the company announces this.
The Netflix DVD rental service launches today a new subscription system to watch movies on their computer.
The industry is skeptical, many people don't believe it.
I am very skeptical about Netflix's ability to succeed in their transition to downloading.
Yet, the bet is brilliant and the boss is sure of himself.
Yahoo, Apple, Amazon, all these separate companies, they do books, music. We will be the only company that will focus solely on films.
This is the beginning of the Netflix we know today, an online platform that quickly won't just stream movies and series, but will also produce its own, starting with House of Cards in 2013.
Netflix now creates its own content. They have already produced House of Cards with Kevin Spacey, partly thanks to an algorithm that understands what people really want to watch.
And what I find deliciously ironic in Netflix's story is that one year after its launch, in 1998, Amazon's boss, Jeff Bezos, immediately spotted the genius and tried to buy you. He offers $15 million. It's a pittance, but the founders refuse. And today, you have become competitors of Amazon Prime, meaning Jeff Bezos, the man who wanted to buy you. Bravo!
In 2 minutes, that went well.