Netflix, an American entertainment company, which has revolutionized television viewing, has an estimated net worth of billion dollars. Founded by Marc Randolph and Reed Hastings as a DVD rental company, it has gradually expanded into media streaming and content creation. Making a humble beginning in the USA two decades back, the company has seen unprecedented growth in its subscription base which now covers the whole of the globe except China. Now let’s have a close look at Netflix’s net worth.
Netflix was founded on 29th August 1997 in Scotts Valley, California by Reed Hastings and Marc Rudolph. They had previously worked together in Hastings Company Pure Atria.
Inspired by the success of Amazon, they started Netflix on a similar concept. Unlike Amazon that sold varied consumer items, Netflix was started as an online rental company that sent DVD’s through the post.
The company became public in 2002 with an initial offering of 5.5 million shares at $15 rate.
Encouraged by the success of YouTube as a popular streaming site, the company started offering video-on-demand internet services from 2007.
Though Netflix was an independent film distributor till 2008, it expanded into actual content production from 2011. Its first original content was in 2013 titled House of Cards, a political drama, which became highly popular among TV watching audience.
Currently, Netflix has a subscription base in over 190 countries with its subscriptions crossing the 100 million mark.
Starting as a video rental company, Netflix has added various other products and services to its portfolio.
Initially, the company had just 925 DVD’s available for rent. In less than 10 years the company had 35,000 film titles for rent and had started shipping a million DVD’s per day.
Growth in internet and smartphones allowed people to view videos anywhere and anytime. Recognizing this substantial net savvy market of video viewers, Netflix started online streaming of media. This business acumen paid off, and Netflix was able to garner a record 27 million subscribers in just over 5 years.
Once it started airing original content and expanded its subscription base to more than 40 countries in 2014, its subscribers increased to 50 million worldwide. By this time Netflix had firmly established itself as the world leader of online media streaming.
Apart from providing online media services, Netflix has also developed some products like FAST- tool to determine internet speed and Netflix button for remote control.
Awards & Achievements
Once Netflix entered the original content market, it also became a contender for various awards. Till date Netflix has earned a number of nominations, notable ones being Emmy awards, Golden Globe awards, BAFTA awards, Academy awards and Grammy awards.
Netflix has been nominated for 128 Emmy awards and won 37. It received 27 Golden Globe nominations and won 4 awards. It has been nominated four times for the Grammy awards. For the Oscars, Netflix was nominated 7 times and won one award.
Netflix is also a Fortune 500 company that is ranked at number 14 as the most admired company.
Net Worth of Netflix
As per the financial statements released by Netflix on 16th October 2017, it has an estimated net worth of $3.3 billion. Netflix has total assets to the tune of $16.9 billion. The total liabilities of the company are $13.6 billion.
Second Quarter ending statements have revealed amazing results that have surpassed all Wall Street forecasts. The company has added nearly 5.2 million members, which is much more than the estimate of 3.2 million.
The share price of the company has also shown continuous increasing trends with the current price trending at $221.
Despite receiving tough competition from biggies like Amazon and Apple, Netflix continues to be the leader in online media streaming. Offering quality original content and letting users binge watch them without ad breaks has made Netflix a favorite among Americans. Looking at the trends, it won’t be long before Netflix becomes a part of every household the world over