Netflix was founded in 1997 as a DVD rental service. It has since transformed into one of the world’s leading streaming platforms. Over the years the company has continuously tweaked its subscription offers to meet changing needs and viewing habits.
Initially, Netflix introduced a DVD rental-by-mail subscription service, where customers could choose from a selection of DVDs online, receive them via mail and return them at their convenience with no late fees. This subscription model upturned the traditional instore video rental offer, providing convenience and huge choice.
Recognising the shift towards digital, Netflix launched its streaming service in 2007, allowing subscribers to instantly watch films and TV shows online. This was initially offered as a complementary feature to the DVD rental subscription, however, as streaming gained popularity, the company started investing in the expansion of its digital content library.
Netflix also began producing original content to differentiate itself from competitors and attract more subscribers.
As the company expanded its global presence to more than 190 countries, it introduced different pricing tiers. The basic plan offers standard definition streaming on one device, while the standard plan allows HD streaming on two devices simultaneously. The premium plan offers ultra HD streaming on up to four devices.
The company now invests heavily in original content creation and constantly experiments with new features, such as offline downloads and interactive storytelling, to enhance the user experience and retain subscribers. At the end of 2023 it announced its plans to create experience locations, known as Netflix Houses, where fans will be able to buy merchandise and eat food based on shows.
This is one of five company profiles in the Subscription 2024 report. In-depth case studies on Hotel Chocolat, Graze, Cocoon and Gousto are also included.
The wider report explores consumer behaviour and offers retailers invaluable insight into how they can add value with subscription offerings.
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