Whenever the binge-watch mood hits, the first name that pops into your mind is Netflix.
Netflix has literally become a part of everyone’s life now.
What began as a simple DVD rental service is today one of the world’s most popular video streaming platforms, available in almost 190 countries.
You’ll find everything here: movies, shows, documentaries, and anime. Plus a huge library of Netflix Originals in languages like Spanish, Korean, Turkish, Hindi, and many more.
The best part is, you can watch your favourite content online or offline, on both Android and iOS. Netflix is literally everywhere and ready whenever you are, giving you a smooth and flexible user experience.
And now, it’ll be interesting to see how this popular streaming giant actually makes its money.
Overview Of The Netflix Business Model
| Point | Overview |
| Company Name | Netflix |
| Founded | 1997 |
| Founders | Reed Hastings & Marc Randolph |
| Headquarters | Los Gatos, California, USA |
| Industry | OTT Streaming & Entertainment |
| Available | 190+ Countries |
| Subscribers (2025) | 301.6M+ paid subscribers |
| Ad-Supported Plan Users | 94M+ users |
| Business Model | Subscription-based streaming platform |
| Key Services | Streaming (Movies/Shows), Netflix Originals, Games, Downloads, Multi-device streaming |
| Top Markets | USA, UK, India, Brazil |
| Revenue (2025 Q3) | $11.51 Billion |
Netflix Success Story: How Netflix Works?
Reed Hastings and Marc Randolph shared a background in entrepreneurship and innovation.
Reed had already sold his software company, Pure Software, for $750 million in 1997. Marc, on the other hand, had experience running a mail-order computer business.
Netflix started because of a simple problem. In 1997, Reed Hastings rented the movie Apollo 13 from a video rental store ( Blockbuster) and forgot to return it on time.
He was charged a $40 late fee! That made him think, “This must be happening to a lot of people.”
That’s when Reed, along with his friend Marc, thought of starting a video rental by mail service. But back then, videos came on VHS tapes—big, heavy, and fragile. Mailing them just wasn’t practical, so they dropped the idea.
Then, in March 1997, DVDs were launched in the U.S. Unlike VHS tapes, DVDs were small, light, and durable. Reed and Marc decided to give their idea another shot. To test it, Reed bought a DVD, mailed it to himself, and was surprised to see it arrive the next day in perfect condition. And they realised their idea could work.
In 1998, they launched Netflix with just 30 employees and 925 movie titles, starting their journey as a DVD rental business platform.
At first, it was simple: you go to their website, rent a DVD for $4, and pay a little extra for postage. DVDs were mailed to you, and you’d return them the same way ($4 rent fee + postage fee + incurred late fee)
But later, they introduced a monthly subscription that let you keep up to 3 DVDs at a time. No due dates. No late fees. Keep them as long as you like. Just send one back when you’re done, and get the next one in your list ($4 rent fee + postage fee + subscription).
This made Netflix stand out. People loved the freedom of watching movies on their own time without worrying about due dates or late fees.
Netflix Funding Rounds
| Date | Funding Amount | Round | Investors |
| July 11, 1999 | $30M | Series D | Foundation Capital, Group Arnault |
| Sep 2000 | $50M | Series E | – |
| Nov 21, 2021 | $400M | Post IPO | T. Rowe Price, TCV |
Acquisitions By Netflix
| Date | Acquired Company | Amount |
| Aug, 2017 | Millarworld | – |
| Oct, 2018 | Albuquerque Studios | $30M |
| Sep, 2021 | Night School Studio | – |
| Mar, 2022 | Next Games | $72.7M |
| Mar, 2022 | Boss Fight Entertainment | – |
| June, 2022 | Roku | – |
| July, 2022 | Animal Logic | – |
| Oct, 2022 | Spryfox | – |
Types Of Content You Can Stream On Netflix
Netflix offers three main types of streaming content, which make up the variety of movies and TV shows we see on its platform. Here’s a simple breakdown:
1. Licensed Second-Run Content
These are the shows and movies that were already released in theatres and became popular. Netflix buys the streaming rights to these. They just pay to stream this exclusive content for a specific period.
2. Licensed Originals
These are the movies or TV shows produced by some other studios, but Netflix buys the distribution rights to release them as “Netflix Originals.” Even though they are not fully owned by Netflix, they are branded as original productions on the platform. For example, House of Cards was Netflix’s first licensed original series.
3. Self-Produced Originals
These movies or shows are completely owned and produced by Netflix. This category represents Netflix’s true original content. The first major self-produced original was Stranger Things in 2016, which became one of Netflix’s most popular TV shows globally.
Features Of Netflix
- Huge Content Library
- Offline downloads
- Multi-language subtitles
- 4k and HDR support
- Multiple Device Support
- Playback controls
- Parental controls
- Allows the creation of multiple profiles
- Personalised/Smart Recommendations (movies/shows)
Netflix Revenue Model: How Much Money Does Netflix Make?
Netflix’s primary source of income comes from its subscription-based model. This means users pay a monthly fee to watch their favourite movies, shows, and series. The cost of the subscription fees varies depending on the plan chosen by the users.
It’s an on-demand online streaming platform, so users get access to a library of movies, shows, and series at their convenience. As of today, Netflix has more than 301.6 million paid subscribers worldwide. To watch anything on Netflix, you need to buy a subscription.
Netflix Subscription Plans:
1. Netflix Basic
The Basic Plan provides access to Netflix on various devices, including TVs, computers, mobile phones, and tablets. The plan offers a resolution of 720p (HD) and good video quality. Streaming and downloading are limited to one device at a time
2. Netflix Standard
The Standard Plan offers Full HD (1080p) resolution with great video quality. It supports streaming and downloading on two devices simultaneously. The plan supports many devices, including TVs, computers, tablets, and mobile phones.
3. Netflix Premium
The Premium Plan provides the best video quality with 4K Ultra HD + HDR resolution and immersive spatial audio for a cinematic experience. It supports video streaming on up to four devices simultaneously and allows downloads on six devices. Compatible with TVs, computers, tablets, and mobile phones.
4. Netflix Mobile
The Mobile Plan is Netflix’s most affordable option, designed exclusively for mobile users. It offers fair video quality with a resolution of 480p, making it ideal for those who primarily watch on smartphones or tablets. The plan allows streaming service on just one device at a time and includes the option to download content on a single device.
In May 2023, Netflix introduced a paid-sharing service. This means that if you’re a Netflix member, you can now pay extra to let people who don’t live with you use your account.
Before this change, Netflix allowed users to share their accounts freely, but they realised they were losing money because of this. So now, to let someone outside your household use your account, you need to buy an additional user slot, and the price for that slot depends on where you live and what type of membership you have
Other Revenue Streams Of Netflix
Licensing Deals
Netflix pays fees to studios and content providers to get the rights to stream their movies and shows. These licensing fees can be quite high, depending on the popularity of the content.
Still, they’re essential for Netflix to keep a large library of content that attracts subscribers and ultimately boosts its revenue.
Some Recent Strategic Partnerships Of Netflix
1. Netflix India has teamed up with the Indian Institute of Creative Technology and FICCI to support students in animation, VFX, gaming, comics, and extended reality (AVGC-XR).
2. Netflix has partnered with Amazon Ads to allow programmatic ad buying on its ad-supported plan. This will roll out across major markets like the US, UK, France, Spain, Canada, Japan, Brazil, Germany, Australia, and more.
3. Netflix India is working with the Ministry of Tourism to promote Incredible India through its original films and series. Popular destinations like Rajasthan, Kerala, Goa, Mumbai, and Jaipur will be showcased to boost tourism.
4. Netflix has partnered with Aditya Chopra’s Yash Raj Films to bring a curated selection of iconic Bollywood movies to the platform. These YRF films will be released in phases throughout the year, timed around festivals, special occasions, and classic cinematic moments.
5. Netflix is partnering with Spotify to bring its video podcasts to a broader audience. Starting early 2026, select shows from Spotify Studios and The Ringer will stream on Netflix in the US.
6. Mastercard has partnered with Netflix to give special perks to Mastercard users in 2025.
If you use a Mastercard, you’ll get early access to buy tickets and enjoy other exclusive benefits at Netflix’s live events and experiences happening in person.
7. SBS, a leading South Korean broadcaster, has teamed up with Netflix on Dec 23, 2024, to bring popular Korean dramas and variety shows to viewers worldwide.
8. Netflix and Google have partnered up to make it easier for fans of Emily in Paris to shop the fashion seen on the show. Now, viewers can instantly buy the outfits and accessories worn by characters, all through a simple shopping feature.
Netflix Competitors
1)- Amazon Prime
2)- Disney+Hotstar
3)- Apple TV
4)- YouTube TV
5)- HBO Max
6)- Hulu
Interesting Facts about Netflix
1. As of 2025, 94 million people use Netflix’s ad-supported plan.
2. The United States is Netflix’s largest market, with around 81.44 million subscribers.
3)- On average, Netflix users spend about 63 minutes a day watching.
4. “House of Cards” was the first Netflix original production.
5. In August 2023, Netflix introduced Netflix Stories, a new collection of interactive games based on its popular series and movies. These games let you become part of the story and make choices as you play.
6. Back in 2000, Netflix was struggling and almost sold itself to Blockbuster for $50 million. At the time, it seemed like a good idea because Netflix didn’t have enough money to keep going. However, Blockbuster turned down the offer. Now, Netflix is the world’s largest streaming platform.
Frequently Asked Questions – Netflix
1. Who is the founder of Netflix?
Netflix was founded by Reed Hastings and Marc Randolph.
2. What is the revenue of Netflix?
As of 2025 Q3, Netflix made $11.51 billion in revenue.
3. How much does Netflix make a year?
Netflix made $39 billion in 2024, which is 15.7% more than the previous year. And by 2025 Q3, Netflix has already made $11.51 billion.
4. How many countries is Netflix in?
Netflix is available in over 190 countries.
5. Who is the CEO of Netflix?
Netflix has two co-CEOs: Ted Sarandos and Greg Peters.
6. Is Netflix Profitable?
Yes, Netflix is among the few online video streaming platforms that actually make money. In 2024, Netflix made a profit of about $8.7 billion. And the platform is still growing in 2025. In Q3 2025, Netflix generated $11.51 billion in revenue. All because of their exclusive global content and rising subscriber base.
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