How Does Netflix Work?

Netflix launched in 1997 by Reed Hastings and was created to be a viable and easy alternative to renting movies, primarily VHS tapes at the time from a video store. Netflix at the time only had DVD films which they shipped to the user’s address and with which they could keep until they were finished and sent them back. The company would then ship the next movie in the customer’s queue and all this for a monthly subscription price of $7.99.

DVDs and Online Streaming

In 2008, Netflix introduced online streaming content on its website and eventually offered unlimited streaming for the same subscription price as the DVD rentals. Netflix has a huge library of movies, over 75,000 and the company continues to add to it on a regular basis. The majority of rentals from Netflix actually are classic and older movies with only about 30% of rentals coming from new releases.

Customers simply create an account with Netflix which gives them their first month free and there is no obligation to continue using the service once that month is over. They have a choice on whether they wish to stream a movie or TV show via Netflix Instant in the United States or via the Canadian Netflix website; or to have a movie shipped to them that are available on DVD or Blu-Ray disc (this option is only available to the United States.)

Recommendations and Suggestions

Netflix offers suggestions or recommendations to customers based on how they rated movies or TV shows they have previously watched and also by watch genres they have watched. The website’s search engine will pick similar selections and display them to the customer so if they aren’t sure of what they wish to see, they may like one of the many movies and TV shows that are displayed.

Customers may rate movies and TV shows as well and this not only helps other customers know if they may wish to watch it, it also helps narrow down the suggestions Netflix makes for similar features.

Monthly Subscription

After the first month is over, customers pay a monthly fee of $7.99 for unlimited streaming or unlimited DVD or Blu-Ray rental. If you wish for a combination of both services, you will need to pay for both plans which means a cost of approximately $15.00 a month for unlimited use of both services.