So, guys from TecMundo, all beauty? I'm Nilton Kleina and we'll tell you more a chapter in the history of technology. This time without going too far in the past.
We will tell the story of Netflix, a recent company, but already a giant. Today a lot of people can't imagine yourself without Netflix. There are those who canceled cable TV because of her, spend the night and weekends doing marathons, but do you know where Netflix came from?
Although young, she has a history very cool and full of twists. Let's know her story now. [Nilton] Netflix was founded in Scotts Valley, California in 1997 by Reed Hastings and Marc Randolph.
Hastings was born in Boston, have a math background and master in artificial intelligence. In 1991, he helped found a company called Pure Software that created a debugger of success for Unix. 5 years later the company was sold and Hastings started focus on new projects.
Randolph has specialization in advertising and sales. He started working at MicroWarehouse that sold PCs and accessories by correspondence. Then he went to a startup bought by Hastings and became vice president of marketing over there.
Legend has it that it all began when Hastings was bothered for having to pay $ 40 fine, in a video store, for returning a late movie. This story is very good, but in fact it is very false. The intention is just to tell a common situation at the time to explain the success of Netflix.
In fact, Netflix was only founded after a large and long market study. The first CEO was Randolph, who was a sales expert. His idea was to create a system mail order where you placed the order over the internet.
Their first test was with VHS tapes, but they were expensive and very fragile so they began to see new markets. [Nilton] So, they started testing DVD, a disc media format that was just starting in the US. The service starts working in April 1998 and it has nothing to do with streaming.
You accessed the site, ordered movies over there and the DVDs were delivered to your home. Finished watching or is the deadline? The motoboy passes again at your door, take the movies and you can already enjoy to order more.
Payment was made by leased title, I had nothing of monthly subscription. This model only came in 1999 and he made Netflix famous. You pay a flat fee, take and see how many movies you want without worrying about any other fees as the late payment penalty.
Earlier in life, Netflix, twice, it was almost sold. In 1998, the founding duo met with Amazon lord Jeff Bezos, and listened to a purchase proposal of 12 million dollars. She was turned down and today Amazon is Netflix rival in streaming with Amazon Prime Video.
The second is the most unbelievable! In 2000, Netflix offers to be bought by Blockbuster, who was absolute leader in the video rental market. The value?
50 million dollars, candy change for Netflix today, but a fortune that Blockbuster no longer has it. This Blockbuster refusal seems to lack of market insight? It seems, but when analyzing the facts at the time, That makes a little sense.
At the time, online sales that Netflix offered were a niche market, there was no way to know if that DVD model would be successful and streaming didn't do it yet part of Netflix services. In addition, the company didn't make much profit, so it wouldn't be a "right buy", as we would talk today. But of course, seeing the current situation Netflix and Blockbuster We know who messed up this business.
In the same year, she changes soon and adopts the format in red background that we know to this day. There is also a change in the CEO chair. Randolph leaves in 2002 and leaves office with Hastings.
He already said in interviews that he liked more of the startup phase of the company and that the colleague is largely responsible for the success of the platform. Today Randolph works with investments. and in the formation of new entrepreneurs, besides co-founding a company of data analysis software.
That same year and with the proposal to be totally independent, Netflix begins public offering stock and it works very well. With the money from the investments, the following year, in 2003, she reaches the 1 million mark subscribers and not stop growing. [Nilton] So, we travel a little bit in time and let's go to 2007, when the streaming model video is displayed.
Around this time she also hits the 1 billion mark of rented DVDs, but these discs were starting to fall behind. This year, something curious happens that few people know. Netflix announced a contest to award, with $ 1 billion, the team that developed the best content recommendation algorithm.
The winners were scientists from BellKor's Pragmatic Chaos, a mix of AT&T with a laboratory from Austria. This algorithm improved Netflix in just over 10%, but in the end It has not even been implemented. The contest lasted two years and, in 2009, implementation would be very expensive in terms of engineering and the focus on streaming changed the whole scenario.
But that didn't stop Netflix, which entered in the next decade at full speed. In 2010, she debuts in the first country outside the US, going to Canada. Today there are over 190 countries with the service available.
Even today, it's hard to get the approval of the government of China, North Korea's regions, Syria and Crimea suffer restrictions from the US government itself. In 2008, Netflix suffered its first big scare in the technical part, the database suffered some problems and the company stayed three days without sending new DVDs to your subscribers. But that was a little positive, because it made her smarter and made her adopt cloud computing to save all your servers.
So she hires Amazon Web Services, and look at Amazon that would become one of its biggest rivals. Complete migration of all this data and processes is so long and complex, that started back there and only ended in 2016. [Nilton] In the middle of 2011, Netflix undergoes a radical change, that a lot of people thought was a mistake.
It separates once and for all from business DVDs and leaves the name "Netflix" as something totally online and by stream. Already the movie submission service and now even games in the mail it was called Qwikster, with "w" and "k". But division also meant that the accounts would be separated and subscribers would need subscribe to Netflix and Qwikster to have the services that were once one.
In 2011, a lot of people didn't have the habit of streaming and maybe not a good connection at all. And as everything can get worse, the prices increased. This idea of separation did not last a month.
In an official blog post Netflix CEO Reed Hastings, apologized, said he would repair the mistake and review the whole strategy. But it didn't work, because at that time, hundreds of thousands of Americans didn't like the initial decision and canceled the service once and for all. Maybe they are back now, but at the time it got pretty ugly for Netflix.
The company abandons the separate name, but kill the delivery service on disk in the domain "DVD. com". The first distributed series by Netflix is "Lilyhammer", that tells the story of an isolated mobster in a small Norwegian town.
In 2013, debuted "House of Cards", the biggest investment bet company so far and the first great original content, including in production. It was 100 million dollars for two seasons of 13 episodes each. Needless to say, it worked.
This was the first series made through online that received indications in the main Emmy categories, earning six plus two Golden Globes. Netflix made famous for saving series canceled and give a second chance. It started with season four from "Arrested Development", it was also worth it for "The Killing", "Three is Too Much" and "Gilmore Girls".
So far, the latest big news is an old community request. After years, at the end of 2016, she finally released content download to be viewed offline. First for tablets and smartphones and then to the PCs.
Before that, she changed the system five star rating for a positive or negative note. Netflix has already generated a lot of controversy. For starters, the original movies don't go out in theaters, which annoys many distributors and networks.
These productions have been set aside. at various awards traditional cinema and the premiere in Cannes, In 2017, it was with boos. In addition, Netflix has much bet on original content.
She has created more series and movies made by Netflix itself or bought the rights of independent productions. One of the reasons is licensing content from other producers be getting harder and harder. This has heightened public criticism, who doesn't like some from the original productions and the lack of adding some seasons or the withdrawal of series.
One of the reasons for this? Netflix created the streaming market and made companies like HBO and Fox create their own services and take their contents off Netflix. Netflix is a big advocate of net neutrality, especially in his homeland, the US.
This is because several operators have already been accused of diminishing the speed of subscribers that stayed long time in streaming service. Would it happen to you? With me yes, huh.
But these laws are currently under discussion in the USA and for now everyone has the same speed, even seeing Netflix all day long. And how does Brazil get into this story? Well, Netflix debuted here on September 5, 2011.
The company has won the public with great performance on social networks and some amazing advertisements to the internet. Fábio Junior, Valesca Popozuda, João Kleber and until Xuxa already starred in commercials that bombed around. Billing in 2015 here in the country, was already 1.
1 billion reais, surpassing even some national broadcasters. The company is also taking off around the world. There were 2.
64 billion revenues, only in the first three months of 2017 and currently it accumulates 94 million subscribers. That's it, guys. This is the story of Netflix, a company young man who quickly managed to change: the cinema, the internet and the television with your streaming system If you want to see the history of other companies like that counted on this channel, leave your suggestion in the comments that we will look and do, yes.
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