Netflix Won The Streaming Battle In 2024: Here's How It Grew Into A Hollywood Disruptor With 280 Million Subscribers.

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In his book "That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea," Randolph wrote that he and Hastings met with Bezos in 1998, who offered them "probably something between $14 million and $16 million," Randolph wrote. But they turned down the offer.

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Netflix gained 239,000 subscribers in its first year, according to Inc.

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"As you get older, if you're lucky, you realize two things: what you like, but also what you're good at," Randolph told Forbes in 2019 on why he left Netflix. "The answer to both of them [for me] is early-stage companies. I like the chaos. I like the fact that you're working on hundreds of things at once."

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Netflix ended 2006 with over 6 million subscribers for its DVD-rental service.

But a New York Times story at the time highlighted how the company still faced doubts about its streaming plans, noting that it would cost Netflix $40 million to implement it. The company's stock dropped 6% with the announcement. But Hastings, who was CEO at the time, said that he had "gotten used to" reservations.

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"This was the first time we streamed a show across multiple countries and languages … and it worked," Netflix's current co-CEO Ted Sarandos wrote in a blog post in February 2022.

"It worked because it was a deeply local story that we could share with the world," Sarandos added.

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Netflix has yet to nab the Oscars' top prize, though, despite elaborate campaign spending. Apple TV+ won best picture last year for "CODA," becoming the first streaming platform to do so.

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Chappelle said in the special that "gender is a fact" and defended "Harry Potter" author J.K. Rowling, who came under fire for past transphobic comments.

Sarandos defended Chappelle in a memo to employees, saying in part: "Chappelle is one of the most popular stand-up comedians today, and we have a long standing deal with him. His last special, 'Sticks & Stones,' also controversial, is our most watched, stickiest, and most award winning stand-up special to date."

Netflix trans employees planned a walkout in response to the special and Sarandos' comments.

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Aside from the economic strains of the coronavirus pandemic, Netflix blamed the subscriber loss partly on password sharing. It said that it estimated that an additional 100 million people use Netflix with a shared password. 

It also acknowledged increased competition. Over the last few years, new streaming services like Disney+, HBO Max, Paramount+, and more have entered the space on top of already existing rivals like Hulu and Prime Video.

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Hastings confirmed during Netflix's April 2022 earnings call that the company plans to roll out an ad-supported plan — something it has pushed back against in the past — as the streaming service faced slowing revenue growth and lost subscribers.

Other streamers have, like HBO Max and Paramount+, have embraced ads. Disney+, Netflix's biggest rival, has also launched an ad-supported option.

Netflix's standard HD plan (its most popular plan) is $15.49 per month after the company recently raised prices. 

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Netflix laid off 150 staffers in May 2022 and then 300 more in June.

"While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth," a Netflix spokesperson said of the most recent round of layoffs.

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In Q2 2022, Netflix said it lost 970,000 subscribers. It had forecasted losing 2 million subscribers in the quarter, so it beat expectations — but it was still a sign of company's struggles, proving why it is introducing an ad-based plan and cracking down on password sharing. 

Netflix is optimistic about Q3, though, and forecasted adding 1 million subscribers.

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When the ad program launched, the streamer said it was nearly sold out of inventory.

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The end of 2022 represented a bit of a bounce back for Netflix, as the entertainment company outpaced subscriber growth in Q4 by around 3.1 million, adding 7.66 new subscribers despite its own estimates of 4.5 million, per Variety.

In total the streaming giant amassed 230.75 million subscribers by the end of 2022, compared to its target figure of 227.59 million.

Netflix noted that after a decade into making original content, it was "past the most cash-intensive phase of this buildout," per Variety. Accordingly, money spent on content was $16.84 billion in 2022 — about a 5% less than its 2021 spend.

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Netflix announced it will end its DVD-rental services on September 29, 2023, according to an official Twitter account dedicated to the DVD-side of the business. It will mark the end of a 25-year chapter for the business, which became known for its red envelopes.

Users will have until October 27, 2023 to return their DVDs. Those still subscribed to the DVD service or whose subscription was cancelled in the last nine months will be able to download their queue, rental history, ratings, and reviews via this link.

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Netflix began cracking down on password sharing in 2023, a move that – along with offering a cheaper, ad-supported subscription tier – helped it add new subscribers and deliver blowout earnings throughout 2024, quarter after quarter.

That said, Netflix will stop reporting quarterly subscriber figures in 2025, and some analysts expect the returns on its password crackdown to diminish in the future.  

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Netflix made a costly push into live sports content with a $5 billion deal for a weekly WWE show in the US, and to air other one-off pro wrestling events globally. The content will start rolling out in early 2025.

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Netflix's former firm chief Scott Stuber left the company in January. He was later replaced by Dan Lin, who has reportedly sought to implement a new strategy that shifts away from big-budget action films fronted by marquee stars. 

Lin's plan also involves diversifying Netflix's offerings, prioritizing in-house producers, and skipping theatrical releases.

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In February, Netflix signed on to produce its first Broadway show – a stage play about a Russian oligarch in partnership with "The Crown" creator Peter Morgan. The show started previews in April and closed in June.  

Netflix is also working on a "Stranger Things" prequel play in London, but not as a producer, according to The New York Times. That show, dubbed "Stranger Things: The First Shadow," premiered in the West End this month, and is expected to arrive on Broadway in the spring. 

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Netflix announced a new venture dubbed Netflix House in June – or "experiential entertainment venues" that are slated to arrive in shopping malls in Dallas and Philadelphia next year.

The locations will include Netflix-themed attractions, games, restaurants, and merch as Netflix looks to hone a model pioneered by Disney.

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In November 2024, Netflix's ad business turned two years old. It announced it had 70 million ad-supported subscribers – up from 40 million the previous May – and said that more than half of new sign-ups were for ad-supported plans in countries where the option is available.

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Netflix made another massive foray into live sports content in November, streaming a highly anticipated boxing match between Jake Paul and Mike Tyson, which drew a record-breaking 65 million concurrent viewers globally.

That said, the stream was beset by technical difficulties, with some viewers reporting buffering and audio problems. 

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Netflix closed out the year by streaming its first-ever Christmas Day NFL games, following a pact it announced in May with the NFL to carry holiday games through 2026. This year's spectacle also featured Beyoncé performing at halftime as the Houston Texans faced off against the Baltimore Ravens.