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In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. However, at that time it only had 1,000 films available for streaming, compared to 70,000 available on DVD.[70] The company had for some time considered offering movies online, but it was only in the mid-2000s that data speeds and bandwidth costs had improved sufficiently to allow customers to download movies from the net. The original idea was a "Netflix box" that could download movies overnight, and be ready to watch the next day. By 2005, Netflix had acquired movie rights and designed the box and service. But after witnessing how popular streaming services such as YouTube were despite the lack of high-definition content, the concept of using a hardware device was scrapped and replaced with a streaming concept.[71]
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On January 6, 2010, Netflix agreed with Warner Bros. to delay new release rentals 28 days prior to retail, in an attempt to help studios sell physical copies, and similar deals involving Universal Pictures and 20th Century Fox were reached on April 9.[82][83][84] In July 2010, Netflix signed a deal to stream movies of Relativity Media.[85] In August 2010, Netflix reached a five-year deal worth nearly $1 billion to stream films from Paramount, Lionsgate and Metro-Goldwyn-Mayer. The deal increased Netflix's annual spending fees, adding roughly $200 million per year. It spent $117 million in the first six months of 2010 on streaming, up from $31 million in 2009.[86] On September 22, 2010, the company first began offering streaming service to the international market, in Canada.[87][88] In November 2010, Netflix began offering a standalone streaming service separate from DVD rentals.[89]
In February 2013, DreamWorks Animation and Netflix co-produced Turbo Fast, based on the movie Turbo, which premiered in July.[137][138] Netflix has since become a major distributor of animated family and kid shows.
In September 2017, Netflix announced it would offer its low-broadband mobile technology to airlines to provide better in-flight Wi-Fi so that passengers can watch movies on Netflix while on planes.[186]
On November 13, 2019, Netflix and Nickelodeon entered into a multi-year agreement to produce several original animated feature films and television series based on Nickelodeon's library of characters. This agreement expanded on their existing relationship, in which new specials based on the past Nickelodeon series Invader Zim and Rocko's Modern Life (Invader Zim: Enter the Florpus and Rocko's Modern Life: Static Cling respectively) were released by Netflix. Other new projects planned under the team-up include a music project featuring Squidward Tentacles from the animated television series SpongeBob SquarePants, and films based on The Loud House and Rise of the Teenage Mutant Ninja Turtles.[238][239][240] In November 2019, Netflix announced it had signed a long-term lease to save the Paris Theatre, the last single-screen movie theater in Manhattan. The company oversaw several renovations at the theater, including new seats and a concession stand.[241][242][243]
On January 10, 2023, Netflix announced plans to open an engineering hub in its Warsaw office. The hub is to provide Netflix's creative partners with software solutions in the production of movies and series.[351]
Globally, Netflix had 223.09 million paying subscribers at the end of Q3 2022.[359][360] Customers can subscribe to one of three plans; the difference in plans relate to video resolution, the number of simultaneous streams, and the number of devices to which content can be downloaded.[361]
On July 13, 2022, Netflix announced a partnership with Microsoft to launch an advertising-supported subscription plan.[364] On August 17, 2022, it was reported that Netflix's planned advertising tier would not allow subscribers to download content like the existing ad-free platform.[365] On July 20, 2022, it was announced that the advertising-supported tier would be coming to Netflix in 2023 but it would not feature the full library of content.[366] Netflix US launched with 5.1% of the library unavailable including 60 Netflix Originals.[367] In September, Netflix announced that the launch would be moved up to November 1, 2022,[368][369] but in October, the launch date was changed to November 3, 2022. The ad-supported plan is called "Basic with Ads" and it costs $6.99 per month in the United States.[370] In Canada, the plan was launched two days later, on November 1.[371]
Over the years, Netflix output ballooned to a level unmatched by any television network or streaming service. According to Variety Insight, Netflix produced a total of 240 new original shows and movies in 2018, then climbed to 371 in 2019, a figure "greater than the number of original series that the entire U.S. TV industry released in 2005."[377] The Netflix budget allocated to production increased annually, reaching $13.6 billion in 2021 and projected to hit $18.9 billion by 2025, a figure that once again overshadowed any of its competitors.[378] As of August 2022, Netflix Originals made up 50% of Netflix's overall library in the United States.[379]
On October 1, 2008, Netflix offered access to its service via a public application programming interface (API).[401] It allowed access to data for all Netflix titles, and allows users to manage their movie queues. The API was free and allowed commercial use.[402] In June 2012, Netflix began to restrict the availability of its public API.[403] They instead focused on a small number of known partners using private interfaces, since most traffic came from those private interfaces.[404] In June 2014, Netflix announced they would be retiring the public API; it became effective November 14, 2014.[405] They then partnered with the developers of eight services deemed the most valuable, including Instant Watcher, Fanhattan, Yidio and Nextguide.[406]
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