Netflix: the streaming service and studio and what it does

Netflix, Inc. is a subscription entertainment company based in Los Gatos, California, that streams series, films, games and live programmes to members in more than 190 countries. It began as a DVD rental service by mail and is now one of the largest producers of film and television in the world.

The company matters now because of its size and its profits. Netflix reported revenue of $45.2 billion for 2025 and more than 325 million paid memberships, and it says its audience is approaching one billion people.

Overview and Founding

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. It opened its first DVD rental website in 1998, launched a monthly subscription the following year and listed its shares in 2002.

The shift to the internet came in 2007, when Netflix started its streaming service. In 2013 it began releasing its own series, and on 6 January 2016 it switched the service on in more than 130 new countries at once. Hastings called it “the birth of a new global Internet TV network”.

The DVD business that started it all came to an end in 2023, and since then Netflix has been a streaming company only. It operates as a single business segment and earns most of its money from monthly membership fees.

Key Milestones

• 1997: Reed Hastings and Marc Randolph found Netflix.
• 1998: The first DVD rental and sales website goes live.
• 2002: Netflix becomes a public company.
• 2007: The streaming service launches.
• 2013: Original series begin with House of Cards.
• 2016: Netflix launches in more than 130 new countries in a single day.
• 2020: Ted Sarandos becomes co-chief executive.
• 2025: Revenue reaches $45.2 billion and paid memberships pass 325 million.
• 2026: Netflix declines on 26 February to raise its offer for Warner Bros. and receives a $2.8 billion termination fee.

What It Does

Netflix sells monthly memberships that give access to a library of series, films and documentaries in many languages. Members can pause and resume viewing whenever they want and can change plans at any time, and the company offers a cheaper plan with advertising alongside its ad-free tiers.

Most of what members watch is commissioned or licensed by Netflix. Its own productions range from drama and comedy to documentaries and animation, made in many countries, and it also licenses titles from studios and networks, such as a recent partnership with TF1 in France.

The British drama Adolescence is one recent example; our coverage reported it reached 50 million household views within 12 days of release, the fastest title in the platform’s history to do so.

Live events are a growing part of the offer. Netflix said the Jake Paul and Mike Tyson fight in November 2024 drew 60 million households and peaked at 65 million concurrent streams, and its late 2026 schedule includes NFL games on Thanksgiving Eve and Christmas Day.

Spending on programmes is large. In its February 2026 statement on Warner Bros., Netflix said it planned to invest about $20 billion in content during the year, and it said it would resume buying back its own shares.

Growth has continued in 2026. Third-quarter revenue rose 12% to $12.9 billion, with an operating margin of 34.6%, and the company expects full-year revenue of about $51.1 billion. About 10,900 of its 16,000 full-time staff were based in the United States and Canada at the end of 2025.

The company also invests in talent in the Arab region. It partnered with the Arab Fund for Arts and Culture on a programme for emerging women filmmakers, as reported in our article on the initiative.

In Numbers

• Revenue: $45.2 billion (2025)
• Operating income: $13.3 billion (2025)
• Paid memberships: more than 325 million (end of 2025)
• Advertising revenue: more than $1.5 billion (2025)
• Full-time employees: about 16,000 (31 December 2025)
• Revenue forecast: $51.1 billion (2026, company guidance in October 2026)

Leadership

Netflix is led by two co-chief executive officers, Ted Sarandos and Greg Peters, as listed on the company’s leadership page. Both also serve on the board of directors.