Written by: Nadya A. & Nuri F.

Designed: Adi Dwi P.

It was April 1997 when video rental stores and companies dominated the home entertainment market, and Netflix is one of them. Everyone started to rent videos by coming to the stores and picking their favorite DVDs to watch at home.

In 2007, Netflix started its online streaming service. They had the foresight to take the challenge and bring the whole video rental industry to a new different level. A year later, Netflix introduced a subscription model, where customers could rent DVDs online for a fixed fee per month.

There were many DVD companies in the 90s, but many of them disappeared without a trace. So, what did Netflix do to keep thriving despite the evolving technology and succeed in becoming the world’s most successful subscription company? The answer is only one, they keep transforming.

Netflix did not only reinvent its business by evolving digitally, but it also modified its model to fit everyone’s tastes. In December 2017, Netflix developed a brand-new recommendation algorithm that shows the preview of movies or series with an image that will make you spontaneously click on them. For example, if you love to watch romance series, Netflix will customize its recommended tab to show you an image of a couple cuddling to interest you in watching other series.

Netflix is surely a very successful company right now. They know how to use the data and are able to customize it for every single customer segment. They also keep developing their technology to give the best user experience for customers, so that Netflix can be that one dependable friend that everyone can be with in their free time.


Neelesh, Singh. “Digital transformation: What can we learn from Netflix?” Digital Transformation Leadership, 10 March 2017, https://inform.tmforum.org/features-and-analysis/2017/03/digital-transformation-can-learn-netflix/. Accessed 28 September 2021.

Marjolein, Oomen. “Netflix: How a DVD rental company changed the way we spend our free time.” Business Model Inc, 12 February 2019, https://www.businessmodelsinc.com/exponential-business-model/netflix/. Accessed 28 September 2021.

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