Netflix : The Era Of Cable Cutters Essay

893 Words Dec 12th, 2016 4 Pages
Netflix: The Era of Cable-Cutters
The word “Netflix” has been ingrained in populations all of the world to the point where it has become a common placeholder for groups of people, and couples, to spend their weekends inside, watching a movie or T.V. series from the comfort of their own homes. However, streaming movies from home was not always the case, or ease of use for that matter. Netflix began in 1997 in California by Marc Randolph and Reed Hastings. Randolph co-founded MicroWarehouse which was a computer mail order company, while Hastings was a former match teacher, who founded Pure Software which at the time, has recently sold for $700 million. Hastings initially invested $2.5 million for the startup of Netflix. The tale about the start of company reportedly goes that Hastings’ idea came to fruition for rental-by-mail when he had to pay $40 in fines after returning an overdue copy of the film Apollo 13[1]. At the time, the DVD format, which was able to store high-quality films on a single disc, both Hastings and Randolph thought that the DVD format would replace the inconvenient, heavier, bulkier technology, like the VCR, LaserDisc, or if you still had one, Betamax. Although at the time, DVDs were somewhat expensive seeing as they were only a few years old, and not many Americans had the hardware to play DVDs. Nonetheless, Hastings and Randolph had made a smart move for the future of their business. The company opened on April 14, 1998, with just 30 employees and…

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