Netflix, Inc. operates as the world’s leading subscription-based streaming entertainment service. The company provides members with access to television series, documentaries, feature films, and mobile games across a wide variety of genres and languages.
Headquartered in Los Gatos, California, Netflix has transformed from a DVD rental service into a global entertainment powerhouse. The company now reaches over 301 million paid subscribers in more than 190 countries. Netflix generates revenue primarily through monthly subscription fees across multiple pricing tiers including ad-supported plans.
Netflix History
Netflix Co-founders
Reed Hastings co-founded Netflix in 1997 after selling his software company Pure Atria to Rational Software for $750 million. He served as CEO until 2023 and currently serves as Executive Chairman.
Marc Randolph served as the first CEO of Netflix and helped develop the original DVD-by-mail business model. He stepped down from the board in 2003 and now works as an entrepreneur mentor and speaker.
Netflix Revenue
Netflix generated $39 billion in revenue during 2024 representing a 15.7% increase from the previous year. The company projects revenue between $43 billion and $44 billion for 2025 indicating continued strong growth.
Revenue growth stems from increasing paid memberships global expansion and improved average revenue per user. The ad-supported tier launched in 2022 contributed additional revenue streams with over 94 million monthly active users on the ad plan as of 2025.
Netflix Marketcap
Netflix maintains a market capitalization of approximately $442 billion as of November 2025. This valuation positions Netflix among the top 25 most valuable companies globally and reflects investor confidence in its streaming dominance.
The company’s market cap grew substantially from $27 billion in 2015 to its current level. Netflix experienced volatility in 2022 when subscriber losses temporarily reduced valuation before recovering through strategic initiatives including the ad-supported tier and password-sharing crackdowns.
Netflix Acquisitions
Netflix has pursued strategic acquisitions to strengthen its content library gaming capabilities and production infrastructure. The company traditionally preferred organic growth but shifted strategy in recent years to acquire intellectual property and talent.
The acquisition of Millarworld in 2017 marked Netflix’s first corporate purchase bringing comic book franchises for adaptation. The Roald Dahl Story Company acquisition in 2021 for over $700 million remains Netflix’s largest deal providing access to beloved characters from Charlie and the Chocolate Factory, Matilda, and James and the Giant Peach.
Netflix expanded into gaming through multiple acquisitions beginning with Night School Studio in September 2021. The company acquired Next Games for approximately $72 million in 2022 followed by Boss Fight Entertainment and Spry Fox. These studios develop mobile games available to Netflix subscribers at no additional cost.
Production capabilities expanded through the acquisition of Scanline VFX in 2022 and Animal Logic, the animation studio behind The Lego Movie and Peter Rabbit. Netflix also purchased Albuquerque Studios in 2018 for $30 million establishing dedicated production facilities. The StoryBots franchise acquisition in 2019 strengthened children’s educational content offerings.
In 2024 Netflix acquired Thinkin, a language learning platform, signaling potential expansion into educational content. The company continues evaluating acquisition opportunities while maintaining focus on original content production as its primary growth strategy.
Netflix Competitors
Netflix faces competition from major technology companies traditional media conglomerates and specialized streaming services. The streaming market has become increasingly crowded with well-funded competitors vying for subscriber attention and content rights.
| Competitor | Parent Company | Key Differentiator |
|---|---|---|
| Amazon Prime Video | Amazon | Bundled with Prime membership |
| Disney+ | Walt Disney Company | Marvel, Star Wars, Pixar content |
| Max | Warner Bros. Discovery | HBO original programming |
| Hulu | Walt Disney Company | Next-day TV episodes |
| Apple TV+ | Apple Inc. | Premium original content |
| Paramount+ | Paramount Global | CBS, Paramount Pictures library |
| Peacock | NBCUniversal | NBC content, live sports |
| YouTube Premium | Alphabet Inc. | User-generated and original content |
| Tubi | Fox Corporation | Free ad-supported streaming |
| Pluto TV | Paramount Global | Free live TV channels |
FAQs
When was Netflix founded?
Netflix was founded on August 29, 1997, by Reed Hastings and Marc Randolph in Scotts Valley, California. The company started as a DVD rental-by-mail service before launching streaming in 2007.
How many subscribers does Netflix have?
Netflix has 301.6 million paid subscribers globally as of Q4 2024. The company added a record 18.9 million subscribers in the fourth quarter of 2024 alone.
What is Netflix’s annual revenue?
Netflix generated $39 billion in revenue during fiscal year 2024. The company projects revenue between $43 billion and $44 billion for 2025.
Who are Netflix’s main competitors?
Netflix’s primary competitors include Amazon Prime Video, Disney+, Max (HBO), Hulu, Apple TV+, and Paramount+. These streaming services compete for subscribers and content rights globally.
Where is Netflix headquartered?
Netflix is headquartered in Los Gatos, California, United States. The company operates offices worldwide to support its global streaming service across more than 190 countries.