Netflix has come a long way from its early days as a DVD subscription service. When Netflix was first starting out, the company’s biggest competitor was movie-rental chain Blockbuster, but by being an early adopter of DVDs, Netflix was able to make a profit from mailing DVD rentals straight to the consumer’s door. As Netflix discovered, you can’t beat convenience and the logical next step was to cut out the mail service entirely — nothing is more convenient than streaming from the comfort of your home.
Being able to stream movies on one’s laptop was nothing short of genius in 2007 when Netflix first introduced the practice. When Netflix began producing their own content, it was the next step in their process of changing the future of TV and film. Netflix’s idea soon inspired dozens of big media companies to adopt their own streaming services; in 2023, most consumers have access to several streaming subscriptions rather than only committing to one service. Most of these streaming services are owned by massive media corporations: Disney owns Hulu and Disney Plus, NBC Universal owns Peacock, and Warner Bros. Discovery owns newly-renamed Max. What company is behind Netflix’s success?
Who is responsible for Netflix?
The truth is, Netflix doesn’t have an owner per se. Netflix Inc. is a publicly traded company and as such, has multiple shareholders invested in the company’s success rather than one singular entity owning Netflix. This doesn’t mean all shareholders are equally invested in Netflix, according to CNN, the company’s largest investor is The Vanguard Group, an American investment advising company, which owns over 7.57% of Netflix stock. Other companies, like Fidelity Management and Research — another investment advisor — hold substantial stock in Netflix Inc.
The largest individual investor is Reed Hastings, Netflix’s co-founder and current chairman. After stepping down as co-CEO earlier this year, Hastings became chairman of the company and elevated Greg Peters — then Netflix’s chief product and chief operating officer — into his position. According to a report from The Guardian, Hastings owns a total of about 2% of Netflix’s stock and is estimated to have a personal net worth of $3.3 billion. While no longer the chief executive, Hasting continues to be invested in Netflix’s success.