Netflix (NFLX) first launched as a DVD rental service in 1997. It started as an idea founders Marc Randolph and Reed Hastings had on a carpool trip. Both men were inspired by what Amazon was doing (which, at that time, was selling only books) and wanted to find a way to put their own unique spin on the idea.
After ditching the idea of shipping VHS tapes to customers’ homes, as they were simply too fragile to survive the trip, Randolph and Hastings decided to try out DVDs — which, mind you, had just come out themselves in 1995. That idea led Netflix to become the very first DVD rental website, unknowingly setting the stage for Blockbuster Video’s demise.
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Randolph and Hastings’ Amazon-inspired idea was so good, in fact, that Jeff Bezos himself wanted to buy it. Bezos offered to acquire Netflix from the two founders for $14-$16 million, but Hastings (who owned the larger percentage of the company at 70%) made the decision not to sell.
While it’s had ups and downs over the course of the last 28 years, Netflix has successfully navigated the changing media landscape, shifting its model to streaming while still servicing customers who preferred the DVD model through 2023. Today Netflix is a media behemoth whose stock has been on a steady upswing since mid-2022, making it a top choice for many investors.
Related: Netflix makes surprising move to attract new subscribers
Speaking of changes, Netflix has a few in store that will affect what customers get from its service. And one is rather unusual.
The way you browse on Netflix is about to change.
Image source: Barker/Future Publishing via Getty Images
Netflix introduces several new features
Netflix will add several new features to improve user experience, one of the most unexpected being short-form video in its mobile app.
“In the coming weeks, we’ll be testing a vertical feed filled with clips of Netflix shows and movies to make discovery easy and fun. You’ll be able to tap to watch the whole show or movie immediately, add it to My List, or share with friends,” Wednesday’s post read.
Related: Netflix CEO shares a controversial take on movie theaters
Netflix also introduced what it calls “a simpler, more intuitive design” on its main page. The new design makes shortcuts to heavily used parts of the app, such as Search and My List, more easily accessible at the top of the page. A preview also showcased sections titled “Today’s Top Picks For You” and “Your Next Watch,” which are lists cultivated through each user’s individual profile activity.
Lastly, Netflix mentioned that it’s experimenting with Generative AI to improve its user discovery experience. One way it will do that is through a search feature on iOS, which at the moment is only available through a small opt-in beta. The new feature would allow users to search for movies and shows using prompts like “I want something funny and upbeat” or “I want a scary psychological thriller.”
Why Netflix is making a social media-inspired move
While you might not instantly think of Netflix as a natural competitor to social media platforms such as TikTok and Facebook, the company clearly realizes what user behavior is saying in the world right now: short-form video continues to draw the most attention.
Netflix has shown short-form video of its Netflix exclusives across social media for some time, delivering snippets to reel people in (pun intended) to watch more on the platform. These bite-sized bits of content are easy to share and use Netflix’s audience to promote the streaming service’s products. No wonder it’s such an appealing format.
Netflix also just unveiled its trailer for the immensely popular Korean TV show “Squid Game 3” on May 5, which racked up 9.1 million views in its first 24 hours.