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netflix is a company that streams videos
{{Use mdy dates|date=November 2012}}
{{Infobox company
|company_name=Netflix, Inc.
|company_logo=[[File:Netflix logo.svg|200px]]
|company_type=Public company
|traded_as ={{NASDAQ|NFLX}}<br />[[S&P 500|S&P 500 Component]]
|genre =
|foundation = 1997<ref>{{cite web|url=http://www.netflix.com/MediaCenter?id=5380#rhastings |title=Netflix Management|work=Netflix|accessdate=July 19, 2010}}</ref>
|founder =
|location_city =
|location_country =
|location = [[Los Gatos, California]], US
|origins =
|key_people = [[Reed Hastings]], co-founder and CEO<br />David Wells, CFO<br />Neil Hunt, CTO<br />Ted Sarandos, Chief Content Officer
|area_served = USA <br/> Canada <br/> Mexico <br/> South America <br/> United Kingdom <br/> Republic of Ireland <br/> [[Nordic countries]] except [[Iceland]] (2012)
|industry = [[Video rental]]/[[Streaming media|Streaming]]
|products = [[Vendor lock-in|Proprietary]] [[Microsoft]] [[VC-1]] video streaming, online DVD and [[Blu-ray Disc]] rental
|services =
|revenue = {{profit}} US$3.20&nbsp;billion (''FY 2011'')<ref name = 2011IncomeStatement>[[wikinvest:stock/Netflix (NFLX)/Data/Income Statement|Netflix (NFLX) annual SEC income statement filing via Netflix]]</ref>
|operating_income = {{profit}} US$376&nbsp;million (''FY 2011'')<ref name = 09IncomeStatement>[[wikinvest:stock/Netflix (NFLX)/Data/Income Statement|Netflix (NFLX) annual SEC income statement filing via Wikinvest]]</ref>
|net_income = {{profit}} US$226&nbsp;million (''FY 2011'')<ref name= 2011IncomeStatement/>
|assets = {{increase}} US$3.07&nbsp;billion (''FY 2011'')<ref name = 2011BalanceSheet>[[wikinvest:stock/Netflix (NFLX)/Data/Balance Sheet|Netflix (NFLX) annual SEC balance sheet filing via Wikinvest]]</ref>
|equity = {{increase}} US$643&nbsp;million (''FY 2011'')<ref name = 2011BalanceSheet/>
|num_employees = 2,348 full-time (2011)<ref>[http://ir.netflix.com/secfiling.cfm?filingID=1193125-12-53009&CIK=1065280 Netflix, Inc. – Annual Report]. Retrieved March 18, 2012</ref>
|subscribers = [[File:Green Arrow Up.svg|12px]] 24.4 million (end of 2011)
|parent =
|divisions =
|subsid =
|owner =
|company_slogan =
|homepage = {{URL|http://www.netflix.com/}}
|dissolved =
|footnotes =
}}

'''Netflix, Inc.''' is an American provider of [[Video on demand|on-demand]] Internet [[streaming media]] available to both North and South America, the Caribbean, United Kingdom, Ireland, Sweden, Denmark, Norway, Finland and [[flat rate]] [[DVD-by-mail]] in the United States, where mailed DVDs are sent via [[Permit Reply Mail]]. The company was established in 1997 and is headquartered in [[Los Gatos, California]]. It started its [[subscription]]-based [[digital distribution]] service in 1999<ref name="netflixfact">{{cite web|url= http://netflix.mediaroom.com/index.php?s=43&item=307|title=Netflix Passes 10 Million Subscribers|publisher=Netflix}}</ref>, and by 2009 it was offering a collection of 100,000 titles on DVD and had surpassed 10 million subscribers. On February 25, 2007, Netflix announced its billionth DVD delivery.<ref>{{Cite news|url=http://www.msnbc.msn.com/id/17331123/|title=Netflix delivers 1 billionth DVD|publisher=MSNBC|date=February 25, 2007}}</ref> In April 2011, Netflix announced 23.6 million subscribers in the United States and over 26 million worldwide.<ref name="netflix2011april">{{cite web|url= http://seekingalpha.com/article/265310-netflix-q1-earnings-up-88-adds-3-m-subscribers|title=Netflix Q1 Earnings Up 88%, Adds 3.M Subscribers|publisher=SeekingAlpha|date=April 25, 2011}}</ref> By 2011, the total digital revenue for Netflix reached at least $1.5 billion.<ref>{{cite web|url=http://www.paidcontent.org/list/page/the-most-successful-digital-companies/P4/ |archiveurl=http://web.archive.org/web/20110719173326/http://paidcontent.org/list/page/the-most-successful-digital-companies/P4/ |archivedate=July 19, 2011 |title=The paidContent 50: The Most Successful Digital Media Companies In The U.S. |publisher=[[paidContent]] |author=Joseph Tartakoff}}</ref> On October 23, 2012, however, Netflix reported an 88% fall in third-quarter profits.<ref>http://www.economist.com/news/business/21565260-game-changer-game-over-looks-bleak</ref> In January 2013, Netflix reported they had added 2 million U.S. customers during the 4th quarter of 2012 with a total of 27.1 million U.S. streaming customers. In addition, revenue was up 8% to $945 million for the same period.<ref>[http://www.huffingtonpost.com/2013/01/23/netflix-4q-2012_n_2536643.html ''Netflix 4Q 2012 Earnings Show 2 Million User Surge In Subscriber Base''] Retrieved February 4, 2013</ref>

==History==
[[File:Netflix headquarters.jpg|thumb|left|300px|Netflix headquarters in Los Gatos]]
Netflix was founded in 1997 in [[Scotts Valley]], California by Marc Randolph<ref>{{cite web|url=http://www.linkedin.com/profile/view?id=17958160|title=Marc Randolph LinkedIn Profile|author=self|accessdate=October 31, 2011}}</ref><ref>{{cite web|url=http://techcrunch.com/2010/05/07/marc-randolph-bookrenter/|title=Marc Randolph Techcrunch|author=Robin Wauters|accessdate=October 31, 2011}}</ref> and [[Reed Hastings]], who previously had worked together at [[Pure Software]] along with [[Mitch Lowe]]. The idea of Netflix came to Hastings when he was forced to pay $40 in overdue fines after returning ''[[Apollo 13 (film)|Apollo 13]]'' well past its due date.<ref>{{cite web|url=https://twitter.com/netflix/statuses/2746816142|title=Happy Moon Landing Day!|author=Netflix|accessdate=July 20, 2009}}</ref> The Netflix website launched in April 14, 1998 with only 30 employees and 925 works available for rent and brought a more traditional, online pay-per-rental model (US $4 per rental plus US $2 in postage; late fees applied).<ref>{{cite web|author=Stephen Czar|year=1998|url=http://www.dvdfile.com/news/special_report/features/timeline/timeline.htm|title= DVD Historical Timeline|accessdate =January 30, 2006}}</ref> Netflix introduced the monthly subscription concept in September 1999,<ref>{{Cite news|first=Jeffrey M.|last=O'Brien|url=http://www.wired.com/wired/archive/10.12/netflix.html?pg=2|title= The Netflix Effect|publisher=Wired News|date=December 2002}}</ref> but then dropped the single-rental model in early 2000. Since that time the company has built its reputation on the business model of flat-fee unlimited rentals without due dates, late fees, shipping and handling fees, or per title rental fees.

Netflix initiated an [[initial public offering]] (IPO) on May 29, 2002, selling 5.5 million shares of [[common stock]] at the price of US $15.00 per share. On June 14, 2002, the company sold an additional 825,000 shares of common stock at the same price. After incurring substantial losses during its first few years, Netflix posted its first profit during fiscal year 2003, earning US $6.5&nbsp;million profit on revenues of US $272&nbsp;million.

In 2005, 35,000 different film titles were available, and Netflix shipped 1 million DVDs out every day.<ref>{{Cite news|url= http://www.economist.com/displaystory.cfm?story_id=4149765|title=Movies to go|work=The Economist|date=July 7, 2005}}</ref>

Netflix developed and maintains an extensive personalized video-recommendation system based on ratings and reviews by its customers. On October 1, 2006, Netflix offered a [[Netflix Prize|$1,000,000 prize]] to the first developer of a video-recommendation [[algorithm]] that could beat its existing algorithm, [[Cinematch]], at predicting customer ratings by more than 10%.<ref>{{cite web|url=http://www.netflixprize.com/|title=Netflix Prize Website|accessdate=December 8, 2006}}</ref>

In February 2007, the company delivered its billionth DVD<ref>{{cite news|url=http://news.google.com/newspapers?id=Qqc_AAAAIBAJ&sjid=p1YMAAAAIBAJ&pg=2709,435491&dq=netflix+1+billionth+dvd&hl=en|title=The Victoria Advocate – Feb 26, 2007|page=B4}}</ref> and began to move away from its original core business model of mailing DVDs by introducing video-on-demand via the Internet. Netflix grew while DVD sales fell from 2006 to 2011.<ref>{{cite web|url=http://techland.time.com/2011/05/04/dvd-sales-plunge-in-u-s-digital-sales-on-the-rise/|title=DVD Sales Plunge in U.S., Digital Sales On the Rise}}</ref><ref>{{cite web|url=http://arstechnica.com/uncategorized/2007/01/8627/|title=Netflix offers streaming movies to subscribers}}</ref>

Netflix has played a prominent role in independent film distribution. Through a division called [[Red Envelope Entertainment]], Netflix licensed and distributed independent films such as ''[[Born into Brothels]]'' and ''[[Sherrybaby]]''. As of late 2006, Red Envelope Entertainment also expanded into producing original content with filmmakers such as [[John Waters (filmmaker)|John Waters]].<ref>{{cite web|url= http://marketplace.publicradio.org/shows/2006/12/08/AM200612081.html|title=Netflix expands indie film biz|last=Dornhelm |first=Rachel|accessdate=December 11, 2006|date=December 8, 2006|publisher=[[American Public Media]] }}</ref> Netflix announced plans to close Red Envelope Entertainment in 2008, in part to avoid competition with its studio partners.<ref>{{cite news| url=http://ap.google.com/article/ALeqM5iKwZUPaTeYqpyM5ombXf-AXxTVoAD923Q2G01| title=Netflix shuts movie financing arm to focus on core| last= Jesdanun| first=Anick| accessdate=August 11, 2008| date=July 23, 2008| agency=Associated Press}}{{dead link|date=November 2012|bot=Legobot}}</ref><ref>{{cite news| url=http://www.hollywoodreporter.com/hr/content_display/film/news/e3i1143d5f105d0afbb447adbcc57f8312c| title=Netflix closing Red Envelope| last= Goldstein| first=Gregg| accessdate=August 11, 2008| date=July 22, 2008|work=[[The Hollywood Reporter]]}} {{Dead link|date=October 2010|bot=H3llBot}}</ref>

Netflix has been one of the most successful [[dot-com startup|dot-com ventures]]. A ''[[The New York Times]]'' article from September 2002, said that at the time, Netflix mailed about 190,000 discs per day to its 670,000 monthly subscribers.<ref>{{cite news|url=http://www.nytimes.com/2002/09/23/business/new-economy-dvd-s-have-found-an-unexpected-route-to-a-wide-public-snail-mail.html?scp=2&sq=netflix&st=nyt | title=nytimes.com | work=The New York Times | first=Peter | last=Wayner | date=September 23, 2002}}</ref> The company's published subscriber count increased from one million in the fourth quarter of 2002 to around 5.6&nbsp;million at the end of the third quarter of 2006, to 14&nbsp;million in March 2010. Netflix's growth has been fueled by the fast spread of [[DVD player]]s in households; as of 2004, nearly two-thirds of U.S. homes had a DVD player. Netflix capitalized on the success of the DVD and its rapid expansion into U.S. homes, integrating the potential of the Internet and e-commerce to provide services and catalogs that brick and mortar retailers could not compete with. Netflix also operates an online affiliate program which has helped it to build online sales for DVD rentals. The company offers unlimited vacation time for salaried workers and allows employees to take any amount of their paychecks in stock options.<ref>{{Cite news|first=Ryan|last=Blitstein|url=http://www.post-gazette.com/pg/07092/773993-28.stm|title=Vacation policy at Netflix: Take as much as you want|publisher=[[Pittsburgh Post-Gazette]]|date=March 22, 2007|accessdate=November 10, 2008}}</ref>

On September 18, 2011, Netflix announced its intentions to re-brand and re-structure its DVD home media rental service as an independent subsidiary company called [[Qwikster]], totally separating DVD rentals and streaming.<ref name="QwisterBlogPost">{{cite web|last=Hastings |first=Reed |url=http://blog.netflix.com/2011/09/explanation-and-some-reflections.html |title=The Official Netflix Blog : US & Canada: An Explanation and Some Reflections |publisher=Blog.netflix.com |date=September 18, 2011 |accessdate=2012-06-14}}</ref><ref>[http://www.engadget.com/2011/09/19/netflix-spins-dvd-by-mail-service-off-into-qwikster-says-its/ Netflix spins DVD-by-mail service off into Qwikster, says it's 'done' with price changes (video)]</ref><ref>[http://www.engadget.com/2011/09/19/editorial-reed-hastings-netflix-spinoff-isnt-about-dvd-succes/ Editorial: Reed Hastings' Netflix spinoff isn't about DVD success, it's about hedging the stream]</ref> Andy Rendich, a 12-year veteran of Netflix, would have been the CEO of Qwikster. The new service would carry video games whereas Netflix did not.<ref name=CNN>{{cite news|url=http://www.cnn.com/2011/09/19/tech/web/netflix-qwikster/|title=Netflix renames DVD-by-mail service, adds video games|accessdate=September 19, 2011 | work=CNN|date=September 19, 2011}}</ref> Then, in October 2011, Netflix announced that it would retain its DVD service under the name Netflix and would not, in fact, create Qwikster for that purpose.<ref>[http://www.engadget.com/2011/10/10/netflix-backtracks-on-qwikster-will-keep-dvds-and-streaming-und/ Netflix backtracks on Qwikster, will keep DVDs and streaming under the same URL]</ref>

On October 24, 2011, Netflix announced it lost 800,000 US subscribers in the third quarter of 2011 and more subscriber losses were expected in the fourth quarter of 2011. Despite the losses, earnings for Netflix jumped 63 percent for the third quarter of 2011.<ref>[http://www.bloomberg.com/news/2011-10-24/netflix-3q-subscriber-losses-worse-than-forecast.html Netflix Drops Most Since 2004]. Retrieved October 25, 2011</ref><ref>[http://www.marketwatch.com/story/netflix-earnings-jump-shares-plunge-on-outlook-2011-10-24 Netflix earnings jump]. Retrieved October 25, 2011</ref>

On January 26, 2012, Netflix said it added 610,000 subscribers in the US by the end of the fourth quarter of 2011. The company announced it had 24.4 million US subscribers for this time period.<ref>[http://online.wsj.com/article/SB10001424052970204661604577184860514828248.html Netflix Shares Surge on Subscriber Growth]. Retrieved January 29, 2012</ref>

In April 2012, Netflix filed with the [[Federal Election Commission|FEC]] to form a [[political action committee]] (PAC) called FLIXPAC.<ref name="FLIXPAC">{{cite news|last=Levinthal|first=Dave|title=Netflix forms PAC|url=http://www.politico.com/news/stories/0412/74929.html|newspaper=Politico|date=April 7, 2012}}</ref> ''Politico'' referred to the [[Los Gatos, California]]-based PAC as "another political tool with which to aggressively press a pro-intellectual property, anti-video piracy agenda."<ref name="FLIXPAC"/> The hacktivist group [[Anonymous (group)|Anonymous]] called for a [[boycott]] of Netflix following the news.<ref>{{cite news|last=Franzen|first=Carl|title=Anonymous Launches ‘Operation Boycott Netflix’ Over PAC|url=http://livewire.talkingpointsmemo.com/entries/anonymous-launches-operation-boycott-netflix-over-pac|newspaper=Talking Points Memo}}</ref> Netflix spokesperson Joris Evers indicated that the PAC was not set up to support [[Stop Online Piracy Act|SOPA]] and [[PROTECT IP Act|PIPA]], tweeting that the intent was to "engage on issues like [[network neutrality|net neutrality]], [[bandwidth cap]]s, UBB and [[Video Privacy Protection Act|VPPA]]."<ref>{{cite news|last=Rashid|first=Fahmida Y.|title=Netflix Isn't Pro-CISPA, Facebook Is|url=http://securitywatch.pcmag.com/security/296445-netflix-isn-t-pro-cispa-facebook-is|newspaper=PC Magazine|date=April 10, 2012}}</ref><ref>{{cite news|last=Thier|first=Dave|title=Netflix Has NOT Formed a Pro-Sopa Super-PAC|url=http://www.forbes.com/sites/davidthier/2012/04/09/netflix-has-not-formed-a-pro-sopa-super-pac/|newspaper=Forbes|date=April 10, 2012}}</ref>

In February 2013, Netflix announced it would be hosting its own awards ceremony, ''The Flixies''.<ref>{{cite news|title=Netflix launching its own awards, honoring outstanding achievements in Netflix|url=http://www.avclub.com/articles/netflix-launching-its-own-awards-honoring-outstand,93068/|accessdate=27 February 2013|newspaper=Newswire|date=February 27 2013}}</ref>

===International===

September 22, 2010 Netflix launched their stream-only service in Canada, thus marking their first expansion into international markets.<ref>{{cite news|last=Nowak |first=Peter |url=http://www.cbc.ca/news/business/story/2010/09/22/netflix-canada.html |title=Netflix launches Canadian movie service |publisher=CBC News |date=September 22, 2010 |accessdate=July 2, 2012}}</ref> Then, in spring 2011, Netflix announced their merge into the Latin American market by the end of the year and then again into the European market in the following year starting with Spain.<ref>{{cite news|last=Whitehouse |first=David |url=http://www.bloomberg.com/news/2011-06-03/netflix-to-expand-in-europe-starting-with-spain-figaro-says.html |title=Netflix to Expand in Europe, Starting With Spain, Figaro Says |publisher=Bloomberg |date=June 3, 2011 |accessdate=June 29, 2011}}</ref> although this ultimately proved to be false. Subsequently, Netflix completed the launch of streaming-content services in Latin America in September 2011 by launching in the Caribbean, Mexico, Central and South America.

In October 2011, it was announced that Netflix would launch in the UK and Ireland in early 2012.<ref>[http://www.businessweek.com/ap/financialnews/D9QIKDN00.htm Netflix to provide service to the UK, Ireland]. Retrieved October 25, 2011</ref> Netflix was officially launched as a streaming-only service in the United Kingdom and Ireland on January 9, 2012.<ref name="Netflix UK">{{cite news|last=Vitorovich |first=Lilly |url=http://online.wsj.com/article/BT-CO-20120820-705409.html |title=Netflix Reaches 1 Million Membership Milestone in UK, Ireland |work=The Wall Street Journal |date=August 20, 2012 |accessdate=October 18, 2012}}</ref> On August 20, 2012, Netflix announced it had reached the one million member milestone in the UK and Ireland.<ref name="Netflix UK"/>

On August 15, 2012, Netflix announced further expansion by rolling out its services to Norway, Denmark, Sweden, and Finland before the end of 2012,<ref>[http://www.engadget.com/2012/08/15/netflix-watch-instantly-streaming-scandinavia/ Netflix Watch Instantly streaming coming to Norway, Denmark, Sweden and Finland this year] Retrieved August 15, 2012</ref> eventually launching these services in October 2012.<ref>Yahoo Finance [http://finance.yahoo.com/news/netflix-launches-sweden-denmark-norway-120000839.html Netflix Launches In Sweden, Denmark, Norway And Finland] Oct 18. 2012</ref><!-- find a better ref?-->

On December 24, 2012, at around 1pm, a number of [[Amazon Web Services]] servers crashed affecting numerous services including Netflix "instant streaming". The outage lasted more than 20 hours.<ref>http://www.theverge.com/2012/12/24/3801978/netflix-streaming-down-on-some-devices-thanks-to-amazon-issues</ref><ref>https://aws.amazon.com/message/680587/</ref>

==Services==
Netflix is a subscription-based movie and television show rental service that offers media to subscribers via Internet streaming and via US mail.

===Internet video streaming===
Netflix offers Internet video streaming ("Watch Instantly") of selected titles to computers running Windows or Mac OS X and to [[#Device support|compatible devices]]. Internet video streaming once came at no additional charge with Netflix's regular subscription service; however, only a portion of Netflix's content is available via the "Watch Instantly" option.<ref>{{cite web|url=http://news.cnet.com/8301-17938_105-9940529-1.html |title=Netflix Watch Now: Missing too much popular content |author=Falcone, John P. |date=May 9, 2008 |work=CNET |accessdate=July 19, 2010}}</ref> In its simplest form, video is streamed to the user using standard PC hardware, and requires Microsoft's [[Silverlight]] software to be installed. Viewing is initiated by pressing a "Play Instantly" button, and played back on the PC monitor. Films can be paused or restarted at will. According to a 2011 report by [[Sandvine]], Netflix is the biggest source of North American web traffic, accounting for 33% of traffic during peak periods and 28.8% of aggregate traffic.<ref>http://www.sandvine.com/news/global_broadband_trends.asp</ref>

Initially, the feature offered subscribers one hour of media for approximately every dollar they spent on their subscription. (A $16.99 plan, for example, entitled the subscriber to 17 hours of streaming media.) In January 2008, however, Netflix lifted this restriction, at which point virtually all subscribers were entitled to unlimited hours of streaming media at no additional cost. Subscribers with a plan of $4.99/two DVDs per month, one DVD at a time, were allowed two hours which could only be watched on a computer. The terms of the service were a response to the introduction of [[Apple Inc.|Apple]]'s new video rental services.<ref>{{cite news|url=http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/01/13/financial/f090113S93.DTL |title=Netflix Expands Internet Viewing Option |work=San Francisco Chronicle |accessdate=January 13, 2008 |archiveurl = http://web.archive.org/web/20080115195018/http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/01/13/financial/f090113S93.DTL <!-- Bot retrieved archive --> |archivedate = January 15, 2008}}</ref> Netflix has since split its DVD and streaming service in two, charging separately for each.

According to Netflix Tech Support, Netflix's content library is encoded into three bandwidth tiers, in a compression format based on the [[VC-1]] video and Windows Media Audio codecs{{Citation needed|date=October 2011}}. Of these, the lowest tier requires a continuous downstream bandwidth (to the client) of 1.5 Mbit/s, and offers stereo audio and video quality comparable to DVD. The middle tier requires 3 Mbit/s, and offers "better than DVD quality". The highest tier requires 5 Mbit/s, (uses up to 2.3 GB/hour =0.654 MB/s =5.23 Mbit/s)<ref>[https://account.netflix.com/VideoQuality]</ref> and offers 720p HD with 5.1 and 7.1 [[surround sound]] audio on select shows. {{As of|2011|10}}, several devices also have the ability to stream 1080p resolution for certain shows, including the [[PlayStation 3]] console and [[Roku#Feature comparison|Roku 2]] series set-top boxes which require 8 Mbit/s.<ref>{{cite web|url=http://blog.us.playstation.com/2010/10/14/netflixps3/|title=Netflix on PS3: Disc-free Next Week|accessdate=October 10, 2011|date=October 14, 2010}}</ref><ref>{{cite web|url=http://support.roku.com/entries/20318908-does-netflix-on-the-roku-2-support-1080p-streaming|title=Does Netflix on the Roku 2 support 1080p streaming?|accessdate=October 10, 2011|date=July 29, 2011}}</ref>

Netflix does not officially support playback on Linux PCs although the Linux-based [[Roku]] devices are supported. It is possible to connect the Roku device, game console, or Blu-ray Disc player to a Linux PC (or directly to the computer monitor) with an adapter. It is also possible to run Windows and Netflix in a virtual machine such as [[Virtualbox]] or [[QEMU]]. In a [[TechRepublic]] interview in August 2010, Netflix's VP of Corporate Communications stated that available Silverlight plugins for Linux, such as [[Moonlight (runtime)|Moonlight]], do not support the [[PlayReady]] [[Digital rights management|DRM]] system that Netflix requires for playback.<ref name="techrepublic">{{cite web|last=Wallen |first=Jack |url=http://blogs.techrepublic.com.com/opensource/?p=1745 |title=The Netflix Linux conjecture: How Netflix snubs the Linux community |publisher=Blogs.techrepublic.com.com |accessdate=June 29, 2011}}</ref> Netflix does support the [[Android (operating system)|Android]] operating system, which uses a [[Fork (software development)|forked]] version of the [[Linux kernel]]. There is an unofficial Netflix app based on [[Wine (software)|Wine]] that allows watching Netflix on Linux without installing Windows in a virtual machine.

The selection of available titles is based upon the user's [[IP address]]. For most users, this corresponds to the user's physical location. However, it means that, for example, a user in Canada who is accessing the Internet through a U.S.-based router connection will see the selection available to U.S. users.

According to a survey by [[Nielsen ratings|Nielsen]] in July 2011, 42% of all Netflix users make use of a stand-alone computer to connect to Netflix, 25% do so by using the [[Wii]], 14% by connecting their computers to a TV, 13% make use of a [[PlayStation 3]] and 12% use an [[Xbox 360]].<ref>{{Cite news|url= http://blog.nielsen.com/nielsenwire/online_mobile/what-netflix-and-hulu-users-are-watching-and-how/ |title=What Netflix and Hulu Users are Watching… and How|work= NielsenWire |date= July 27, 2011|accessdate=July 27, 2011}}</ref>

====History====
On October 1, 2008, Netflix announced a partnership with [[Liberty Starz|Starz Entertainment]] to bring 2,500+ new movies and television shows to Watch Instantly in what is being called Starz Play.<ref>{{Cite news|url=http://latimesblogs.latimes.com/entertainmentnewsbuzz/2008/10/more-mainstream.html |title=More mainstream movies for Netflix online | work=Los Angeles Times |date= October 1, 2008|accessdate=November 21, 2008}}</ref>

In August 2010, Netflix announced it had reached a five-year deal worth nearly $1&nbsp;billion to stream movies from Paramount, Lionsgate and MGM. The deal increased the amount Netflix was spending on streaming movies annually and adds roughly $200&nbsp;million per year. It spent $117&nbsp;million in the first six months of 2010 on streaming, up from $31&nbsp;million in 2009.<ref>{{Cite news|title=Netflix to Stream Films From Paramount, Lions Gate, MGM |first=Brian |last=Stelter |newspaper=[[The New York Times]] |date=August 10, 2010 |url=http://mediadecoder.blogs.nytimes.com/2010/08/10/netflix-to-stream-films-from-paramount-lionsgate-mgm/ |accessdate=August 11, 2010}}</ref>

As of 2011, Netflix's "Watch Instantly" service holds first-run rights to films from [[Paramount Pictures]], [[MGM]], [[Lions Gate Entertainment]] (through an output deal with [[Epix (TV channel)|Epix]]), along with back-catalog titles to films from [[Time Warner]], [[Universal Pictures]], [[Sony Pictures]], [[Paramount Pictures]], [[MGM]], Lions Gate Entertainment, [[20th Century Fox]], [[The Walt Disney Company|Disney]], and other distributors. Netflix also provides current and back-catalog TV programs distributed by [[NBC Universal]], 20th Century Fox, Sony Pictures, [[Disney-ABC Domestic Television]], with select shows from [[Warner Bros.]] as well. Netflix also previously held the rights to select titles from the [[Criterion Collection]], but those were pulled from the streaming library when Criterion titles were added to [[Hulu]]'s Hulu Plus streaming library.<ref>{{Cite news|title=Netflix loses Criterion films |first=Jeff |last=Chabot |work=HD Report |date=February 18, 2011 |url=http://www.hd-report.com/2011/02/18/netflix-loses-criterion-films/ |accessdate=February 18, 2011}}</ref> Netflix has "[[pay TV]] window" deals with [[Relativity Media]], [[FilmDistrict]], and [[Open Road Films]].<ref>{{Cite news|title=Open Road Films signs pay TV deal with Netflix |first=Ben |last=Fritz |work=Los Angeles Times |date=June 28, 2011 |url=http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/06/open-road-films-signs-pay-tv-deal-with-netflix.html |accessdate=July 31, 2011}}</ref>

On July 12, 2011, Netflix announced that it would separate the current subscription plans into two separate plans: one covering the instant streaming and the other DVD rental.<ref name="cnet hike">{{cite web|last=Reisinger |first=Don |url=http://news.cnet.com/8301-13506_3-20078765-17/netflix-hikes-prices-adds-dvd-only-plan/ |title=Netflix hikes prices, adds DVD-only plan &#124; The Digital Home – CNET News |publisher=News.cnet.com |date=July 12, 2011 |accessdate=2012-06-14}}</ref> The cost for streaming would be $7.99 while DVD rental would start at the same price. The announcement led to a flurry of negative reception amongst Netflix's Facebook followers, posting negative comments on the company's wall.<ref name="cnet negative">{{cite web|last=Mack |first=Eric |url=http://news.cnet.com/8301-1023_3-20078960-93/dear-netflix-price-hike-ignites-social-media-fire/ |title='Dear Netflix': Price hike ignites social-media fire |work=CNET News |date=July 12, 2011 |accessdate=2012-06-14}}</ref> Twitter comments also spiked a "Dear Netflix" trend with generally negative comments as well.<ref name="cnet negative" /> The company defended its decision during its initial announcement of the change. "Given the long life we think DVDs by mail will have, treating DVDs as a $2 add-on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs," Netflix wrote on its blog. "Creating an unlimited-DVDs-by-mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs-by-mail offering."<ref name="cnet hike" />

In a reversal, Netflix announced in October 2011 that its streaming and DVD-rental plans would remain together under the Netflix brand.<ref>{{cite news|url= http://mediadecoder.blogs.nytimes.com/2011/10/10/netflix-abandons-plan-to-rent-dvds-on-qwikster/#|work=The New York Times|first=Brian|last=Stelter| title=Netflix, in Reversal, Will Keep Its Services Together | date=October 10, 2011}}</ref>

On September 1, 2011, Starz announced it would remove their movies from Netflix streaming on February 28, 2012. Since the agreement was strictly for streaming movie titles, DVD rentals through Netflix were not affected.<ref>[http://insidemovies.ew.com/2011/09/01/netflix-starz-streaming/ Starz says it won't renew Netflix streaming contract]. Retrieved September 1, 2011</ref> However, around that same time, it was announced Netflix would, in 2013, assume the pay-TV rights to films from [[DreamWorks Animation]] (those output rights are currently held by [[HBO]]).

===Disc rental===
[[File:Netflixenvelope.jpg|thumb|left|300px|Example from a DVD disc of [[Coach Carter]]. The discs are returned to Netflix in the same envelopes in which they are sent to customers.]]
In the United States, the company provides a monthly flat-fee service for the rental of DVD and [[Blu-ray Disc]]s. A subscriber creates an ordered list, called a rental queue, of movies to rent. The movies are delivered individually via the [[United States Postal Service]] from an array of regional warehouses. As of March 28, 2011, Netflix had 58 shipping locations throughout the U.S.<ref>{{cite news | first = Paul | last = Lilly | title = GameFly Complains USPS Favors Netflix | date = March 28, 2011 | url = http://www.maximumpc.com/article/gamefly_complains_usps_favors_netflix | work=Maximum PC | accessdate =April 2, 2011 | quote = Netflix has 58 shipping locations}}</ref> The subscriber can keep the rented movie as long as desired, but there is a limit on the number of movies (determined by subscription level) that each subscriber can have on loan simultaneously. To rent a new movie, the subscriber must mail the previous one back to Netflix in a [[metered reply mail]] envelope. Upon receipt of the disc, Netflix ships the next available disc in the subscriber's rental queue.

Netflix offers several pricing tiers for DVD rental of one to three DVDs at a time. Subscribers with accounts in good standing can upgrade to plans offering up to eight DVDs at a time. Gift subscriptions are also available. Since November 21, 2008, Netflix has offered their subscribers access to [[Blu-ray Disc]]s for an additional fee.

In addition to its movie rental service, Netflix formerly sold used movies. The purchase was delivered via the same system and billed using the same payment methods as rentals. This service was discontinued at the end of November 2008.<ref>{{cite web|url=http://blog.netflix.com/2008/11/normal-0-false-false-false-en-us-x-none.html#links |title=The Official Netflix Blog: Ending sales of previously viewed DVDs on website |publisher=netflix.com |date=November 3, 2008 |accessdate=November 21, 2008}}</ref>

Starting January 6, 2010, Netflix reached an agreement with Warner Brothers Pictures to delay renting new releases for 28 days from their retail release in an attempt to help studios sell more physical media at retail outlets. A similar deal with Universal Studios and Twentieth Century Fox was reached on April 9, 2010.<ref>{{cite web|url=http://netflix.mediaroom.com/index.php?s=43&item=342 |title=Netflix Press Release on Warner Delayed release deal. |publisher=netflix.mediaroom.com |date=January 6, 2010 }}</ref><ref>{{cite web|url=http://netflix.mediaroom.com/index.php?s=43&item=352 |title=Netflix Press Release on Universal Delayed release deal. |publisher=netflix.mediaroom.com |date=April 9, 2010}}</ref><ref>{{cite web|url=http://netflix.mediaroom.com/index.php?s=43&item=353 |title=Netflix Press Release on 20th Century Fox Delayed release deal. |publisher=netflix.mediaroom.com |date=January 6, 2010 }}</ref>

In 2011, Netflix split its service pricing so that customers can decide whether they want to pay for online streams, access to DVDs by mail, or both.

====Qwikster====

On September 18, 2011, Netflix CEO and Co-Founder [[Reed Hastings]] said in a Netflix blog post that the DVD section of Netflix would be split off and renamed Qwikster, and stated that the only major change would be separate websites for the services.<ref>{{cite web|url=http://blog.netflix.com/2011/09/explanation-and-some-reflections.html |title= An Explanation and Some Reflections|work=Qwikster|accessdate=September 19, 2011}}</ref> The new service was to also carry video games for an additional charge, whereas the previous Netflix did not.<ref name="CNN"/> Netflix subscribers who wanted DVDs by mail would have had to use a separate website to access Qwikster.

On October 10, 2011, following negative reaction from customers, Netflix CEO Reed Hastings announced the cancellation of the planned Qwikster service and said that the DVD-by-mail service would remain a part of Netflix.<ref>{{cite web|url=http://netflix.mediaroom.com/index.php?s=43&item=410|title=DVDs Will Be Staying at Netflix.com}}</ref>

===Profiles===
In June 2008, Netflix announced plans to eliminate its online subscriber profile feature.<ref>{{cite web| url=http://netflix.mediaroom.com/index.php?s=43&item=98| title=Netflix Unveils Profiles| accessdate=August 12, 2008| date=January 18, 2005| publisher=Netflix}}</ref> Profiles allow one subscriber account to contain multiple users (''e.g.'' husband and wife, or two roommates) with separate DVD queues, ratings, recommendations, friend lists, reviews, and intra-site communications for each. Netflix contended that elimination of profiles would improve customer experience.<ref>{{Cite news|url=http://blog.netflix.com/2008/06/profiles-feature-going-away.html |title=Profiles feature going away |date=January 19, 2008 |accessdate=January 19, 2008 |work=Netflix Community Blog |quote=[T]he motivation is solely driven by keeping our service as simple and as easy to use as possible. Too many members found the feature difficult to understand and cumbersome, having to consistently log in and out of the website. Please know that the motivation is solely driven by keeping our service as simple and as easy to use as possible. }}</ref> However, likely as a result of negative reviews and reaction by Netflix users,<ref>{{Cite news|url=http://tech.slashdot.org/article.pl?sid=08/06/19/0337233 |title=Netflix To Eliminate Profiles Feature |date=January 19, 2008 |accessdate=January 19, 2008 |work=[[Slashdot]] |quote=Unfortunately, the fun stops September 1, at which point Netflix is, for unknown reasons, going to terminate this feature. Why? To '...help us to continue to improve the Netflix website for all our customers.' Improvement indeed.}}</ref><ref>{{Cite news|url=http://news.cnet.com/8301-13577_3-9972829-36.html |title=Netflix to eliminate profiles, instigate roommate feuds |date=January 19, 2008 |accessdate=January 19, 2008 |work=c{{!}}Net news |quote=Lousy move, Netflix. A thread on feedback forum [[Get Satisfaction]] revealed that other people aren't too happy either.}}</ref><ref>{{Cite news|url=http://arstechnica.com/news.ars/post/20080619-netflix-killing-extra-queues-to-improve-service.html |title=Netflix killing extra queues to "improve" service|accessdate=June 19, 2008 |work=ars technica |date=June 19, 2008 |quote=An online petition is already available, with signees agreeing to either move to a cheaper plan, put their account on hold, or cancel their accounts entirely. Netflix must be banking that the improvements to its web site will offset the ill will and lost subscribers that this news has engendered.}}</ref> Netflix reversed its decision to remove profiles 11 days after its announcement.<ref>{{Cite news|url=http://www.netflix.com/Help?p_faqid=3962&nlid=20427.1001179.0.1.0.0&eid=T1qJaBtlETj5nvQncs6qHWvjUeo4PWZmJla2I78_SB*EY- |title=What is happening to Profiles? |date=January 19, 2008 |accessdate=January 19, 2008 |work=Netflix Customer Service}}</ref> In announcing the reinstatement of profiles, Netflix defended its original decision, stating, "Because of an ongoing desire to make our website easier to use, we believed taking a feature away that is only used by a very small minority would help us improve the site for everyone," then explained its reversal, "Listening to our members, we realized that users of this feature often describe it as an essential part of their Netflix experience. Simplicity is only one virtue and it can certainly be outweighed by utility."<ref>{{cite web|url=http://blog.netflix.com/2008/06/profiles-feature-not-going-away.html |title=Netflix Community Blog: Profiles feature NOT going away |publisher=Blog.netflix.com |date=June 30, 2008 |accessdate=November 21, 2008}}</ref>

==Programming==

===Original programming===
{{Further|List of original programs distributed by Netflix}}

In March 2011, Netflix announced plans to begin acquiring original content for its popular Watch Instantly subscription service, beginning with the hour-long political drama ''[[House of Cards (U.S. TV series)|House of Cards]]'', which debuted on the streaming service in February 2013. The series will be helmed by [[David Fincher]], with Academy Award winning actor [[Kevin Spacey]] headlining the cast. In late 2011, Netflix picked up two 8-episode seasons of ''[[Lilyhammer]]'' and a fourth season of ''[[Arrested Development (TV series)|Arrested Development]]''. [[Deadline.com]] reported Netflix is nearing a 13-episode series order, for both ''[[Orange Is The New Black]]'' and ''[[Hemlock Grove (TV series)|Hemlock Grove]]''.<ref>{{cite web|last=Andreeva |first=Nellie |url=http://www.deadline.com/2011/03/its-official-netflix-picks-up-david-fincher-kevin-spacey-series-house-of-cards/ |title=It's Official: Netflix Picks Up David Fincher- Kevin Spacey Series 'House Of Cards' |publisher=Deadline.com |accessdate=2012-06-14}}</ref><ref>{{cite web|last=Andreeva |first=Nellie |url=http://www.deadline.com/2011/11/netflix-picks-up-new-episodes-of-arrested-development/ |title=Netflix Picks Up New Episodes Of 'Arrested Development' |publisher=Deadline.com |accessdate=2012-06-14}}</ref><ref>{{cite web|author=TIM ADLER in London |url=http://www.deadline.com/2011/10/netflix-adds-%E2%80%98lilyhammer%E2%80%99-to-tv-line-up/ |title=UPDATE: Miramax's Mike Lang and Netflix's Ted Sarandos Talk Shop; Netflix Adds ‘Lilyhammer’ To TV Lineup |publisher=Deadline.com |date=October 3, 2011 |accessdate=2012-06-14}}</ref><ref>[http://www.deadline.com/2011/11/netflix-lionsgate-tv-closing-deal-for-jenji-kohans-orange-is-the-new-black-comedy/ Netflix, Lionsgate TV Closing Deal For Jenji Kohan’s ‘Orange Is The New Black’ Comedy]</ref><ref>[http://www.deadline.com/2011/12/netflix-nears-13-episode-order-for-horror-drama-hemlock-grove-from-eli-roth-and-gaumont-international-television/ Netflix Nears Order For Eli Roth Horror Drama ‘Hemlock Grove’ From Eli Roth And Gaumont International Television]</ref> Netflix announced that ''Hemlock Grove'', will be coming in early 2013.<ref>[http://www.deadline.com/2012/03/famke-janssen-bill-skarsgard-join-eli-roths-hemlock-grove-netflix-to-air-gaumont-produced-series-in-early-2013/ Famke Janssen, Bill Skarsgard Cast In Eli Roth’s ‘Hemlock Grove’; Netflix To Air Gaumont-Produced Series In Early 2013]</ref> [[DreamWorks Animation]] and Netflix agreed to produce a new animated series called ''[[Turbo (film)#Television series|Turbo: F.A.S.T. (Fast Action Stunt Team)]]'', based on the upcoming movie ''[[Turbo (film)|Turbo]]'', which will air in December 2013.<ref>[http://www.deadline.com/2013/02/dreamworks-animation-netflix-turbo-kids-original-series/ DreamWorks Animation To Produce First Netflix Original Series For Kids]</ref>

===Movie and TV library===
Netflix currently has exclusive [[pay-TV]] deals with major and mini-major movie studios. Films featured on Watch Instantly include recent releases from [[Relativity Media]] (and its subsidiary [[Rogue Pictures]]),<ref>[http://www.reuters.com/article/2010/07/06/us-netflix-idUSTRE6650Y220100706 Wall Street Journal: Relativity Media Netflix]. Retrieved July 6, 2010</ref> as well as titles from [[DreamWorks Animation]] (DreamWorks Animation will stream their films beginning in 2013 when their current pay-TV deal ends with [[HBO]]),<ref>{{cite news|title=Netflix, DreamWorks Announce Content Deal |url=http://www.nytimes.com/2011/09/26/business/media/netflix-secures-streaming-deal-with-dreamworks.html?pagewanted=all|work=[[The New York Times]]|date=September 26, 2011|accessdate=September 27, 2011|first1=Brooks|last1=Barnes|first2=Brian|last2=Stelter}}</ref> [[Open Road Films]],<ref>{{cite news | url=http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/06/open-road-films-signs-pay-tv-deal-with-netflix.html | date=June 28, 2012 | accessdate=June 28, 2011 | author=Ben Fritz | work=Los Angeles Times | title=Company Town}}</ref> [[FilmDistrict]],<ref>[http://www.thewrap.com/movies/article/netflix-adds-filmdistrict-its-streaming-service-22925: FilmDistrict Netflix]. Retrieved July 6, 2010</ref> [[The Weinstein Company]] (The Films from TWC are foreign language, documentary, and certain other movies from The Weinstein Company and films from),<ref>{{cite web|url=http://www.deadline.com/2012/02/nextflix-lands-pay-tv-rights-to-the-artist-as-part-of-weinstein-co-deal/ |title=Weinstein Co. and Netflix sign a multi-year licensing agreement |publisher=Deadline.com |date=March 9, 2011 |accessdate=2012-02-21}}</ref> and [[Walt Disney Studios Motion Pictures]] (including [[Walt Disney Pictures]], [[Walt Disney Animation Studios]], [[Disneynature]], [[Pixar]], [[Lucasfilm]], and [[Marvel Studios]]).

[[Epix (TV channel)|Epix]] signed a five-year streaming deal with Netflix where for the first two years, Epix content was exclusive to Netflix (Epix films will come to Netflix 90 days after they premiere on Epix. The exclusive portion ended on September 4, 2012, when Amazon signed a deal with Epix to feature movies on their [[Amazon Instant Video|streaming service]].<ref>[http://adage.com/article/media/amazon-adds-epix-movies-streaming-service/237003/ Amazon Adds Movies to Streaming Service in New Challenge to Netflix]</ref> These include films from [[Paramount Pictures]], [[Metro-Goldwyn-Mayer|MGM]] and [[Lionsgate]]).<ref>[http://content.usatoday.com/communities/technologylive/post/2010/08/epix-netflix-announce-deal-to-stream-movies-/1?csp=34tech Epix, Netflix announce deal to stream movies] August 10, 2010</ref><ref>[http://www.reuters.com/article/2012/05/03/us-viacom-idUSBRE8420KJ20120503 Viacom Inc posted a higher-than-expected profit on Thursday, boosted by an increase in revenue from cable network fees and digital licensing of its TV shows and movies, and its shares rose nearly 5 percent.]</ref>
On September 1, 2011, [[Starz (TV channel)|Starz]] announced it had broken off talks with Netflix to renew its streaming deal. This meant any Starz movies and shows would be removed from Netflix streaming on February 28, 2012. Movie titles that are available on DVD are not affected and can be acquired from Netflix by this method.<ref>{{cite journal|url=http://online.wsj.com/article/SB10001424053111904583204576545051871923760.html|journal=Wall Street Journal|title=Starz to Split From Netflix|accessdate=September 1, 2011}}</ref> However, select movies that have previously been seen on Starz continue to be available on Netflix under license from their respective TV distributors. For instance, certain [[Revolution Studios]] films shown on Netflix are under license from [[Lionsgate]]/[[Debmar-Mercury]]. Netflix can also negotiate to get animated films from [[Universal Studios]] that HBO passed off, such as ''[[The Lorax (film)|The Lorax]]'' and ''[[ParaNorman]]''.[http://www.hollywoodreporter.com/news/netflix-ted-sarandos-discusses-disney-deal-398156]

Other studios providing content on Netflix are licensed from [[Disney–ABC Television Group]], [[DreamWorks Classics]], [[Warner Bros. Television]], [[20th Television]], and [[CBS Television Distribution]]. On August 23, 2012, Netflix and The Weinstein Company sign a Multi-Year Output Deal for RADiUS-TWC.<ref>{{cite web|url=http://www.heraldonline.com/2012/08/23/4208027/netflix-and-radius-twc-announce.html |title=Netflix And RADiUS-TWC Announce Multi-Year Output Deal in the United States To Bring Diverse Slate To Widest Possible Audience |publisher=.heraldonline.com |date=August 23, 2012 |accessdate=2012-08-23}}</ref>

On December 4, 2012, Netflix and [[The Walt Disney Company]] announced an exclusive multi-year U.S. subscription television service agreement with Netflix for first run of Walt Disney Studios animated and live-action movies. New titles from Disney, Walt Disney Animation Studios, Pixar, Marvel Studios and Disneynature will be available from Netflix in 2016. However, classic titles such as "Dumbo", "Pocahontas" and "Alice in Wonderland" were made available to Netflix immediately.<ref>[http://www.cbsnews.com/8301-505124_162-57557111/netflix-outbids-premium-tv-for-rights-to-disney-movies/ Netflix outbids premium TV for rights to Disney movies] Retrieved December 4, 2012</ref> Direct-to-video new releases will be available in 2013.<ref>[http://www.variety.com/article/VR1118063070 Disney inks exclusive licensing deal with Netflix] Retrieved December 4, 2012</ref> The agreement came after Disney's announcement in November 2012, that it would be shutting down its web movie service ''Disney Movies Online'' on December 31, 2012.<ref>[http://www.huffingtonpost.com/2012/11/19/disney-movies-online-shutting-down_n_2160631.html 'Disney Movies Online' Store, Site Shutting Down ] Retrieved December 4, 2012</ref>

On January 14, 2013, Netflix signed an agreement with [[Time Warner]] subsidiaries [[Turner Broadcasting System]] and [[Warner Bros. Television]] to distribute content from [[Cartoon Network]], [[Warner Bros. Animation]] and [[Adult Swim]], as well as the [[Dallas (2012 TV series)|2012 ''Dallas'' TV series]] airing on [[TNT (TV channel)|TNT]] beginning in March 2013.<ref>{{cite web|url=http://news.cnet.com/8301-1023_3-57563850-93/netflix-scores-deals-with-turner-warner-bros/ |title=Netflix scores deals with Turner, Warner Bros. |publisher=CNET |date=January 14, 2013 |accessdate=2013-01-14}}</ref>

==Device support==
{{main|List of Netflix Instant Watch Devices}}

===Hardware supported===
'''List of Netflix-ready devices:'''<ref>{{cite web|url=http://www.netflix.com/NetflixReadyDevices?cid=Game+Consoles |title=Netflix Ready Devices |publisher=Netflix.com |accessdate=June 29, 2011}}</ref>
* '''[[Amazon.com|Amazon]]''' [[Kindle Fire]], [[Kindle Fire HD]]
* '''[[Apple Inc.|Apple]]''' [[Apple TV]] set-top box, [[iPad]], [[iPhone]], [[iPod]]<ref>{{cite web|url=http://www.apple.com/appletv/|title=Apple TV website |publisher=Apple |accessdate=July 10, 2011}}</ref>
*'''Barnes and Noble''' [[Nook Tablet]] (preinstalled) and [[Nook Color]] (optional app)
* '''[[D-Link]] [[Boxee Box]]''' set-top box<ref>{{cite web|url=http://www.boxee.tv/ |title=Boxee website |publisher=Boxee.tv |accessdate=June 29, 2011}}</ref> (Only supports Netflix USA and Netflix Canada, according to the company it will never support Netflix in other countries.)
* '''[[Dynex|Insignia]]''' Blu-ray Disc players and home theater systems
* '''[[LG Electronics]]''' Blu-ray Disc players, TVs (LH50 series LCD and PS80 plasma), and home theater systems
* '''Logitech Revue''' Google TV Buddy Box
* [[Microsoft]] [[Xbox 360]], ([[Xbox Live]] Gold Subscription Required)<ref>{{cite web |url=http://www.msnbc.msn.com/id/25680004/ |title=Microsoft partners with Netflix on Xbox Live |date=July 14, 2008 |last=Kalning |first=Kristin |work=[[MSN.com]] |accessdate=June 1, 2011}}</ref>
* [[Nintendo]] [[Wii]],<ref>{{cite web|url=http://www.netflix.com/NRD/Wii|title=Netflix instantly streams movies online to Wii}}</ref> [[Nintendo 3DS]]<ref>{{cite news|url=http://content.usatoday.com/communities/gamehunters/post/2011/03/nintendo-3ds-to-support-netflix-this-summer/1 |title=Nintendo 3DS to support Netflix this summer |date=March 2, 2011 |work=USA Today |accessdate=March 2, 2011 |first=Brett |last=Molina}}</ref> and [[Wii U]]
* [[Panasonic]] Some Blu-ray Disc players, televisions and home theater systems
* [[Philips]] Some Blu-ray Disc players and TVs<ref>{{cite web|url=http://gizmodo.com/5442992/philips-eco-led-tvs-stream-netflix-while-saving-the-earth |title=Philips Eco LED TVs Stream Netflix While Saving the Earth |author=Nosowitz, Dan |date=January 7, 2010 |work=Gizmodo |accessdate=July 19, 2010}}</ref>
* '''Popbox''' set-top box (announced)
* [[Roku]] set-top box<ref name="netflix roku announce" />
* [[Samsung]] Some Blu-ray Disc players and home theater systems<ref>{{cite web|url=http://www.samsung.com/us/appstore |title=Samsung Apps |publisher=Samsung.com |accessdate=June 29, 2011}}</ref>
* '''[[Seagate Technology|Seagate]]''' FreeAgent Theater+ HD Media Players
* '''[[Sharp Corporation|Sharp]]''' Some LED/LCD TVs and Blu-ray Disc players<ref>{{cite web|url=http://www.sharpusa.com/ForHome/HomeEntertainment/BluRayDisc.aspx |title=Sharp Blu-ray Disc Players |publisher=Sharpusa.com |accessdate=June 29, 2011}}</ref>
* [[Sony]] Blu-ray Disc players, TVs, [[Google TV]] devices, [[PlayStation 3]], and [[PlayStation Vita]]<ref>{{cite web|url=http://blog.netflix.com/2010/10/wii-and-ps3-to-be-disc-free.html |title=Wii and PS3 To Be Disc Free |date=October 18, 2010}}</ref>
* [[TiVo]] DVRs (HD, HD XL, Series3, Premiere and Premiere XL boxes)<ref>{{cite web|url=http://www.tivo.com/mytivo/product-features/on-demand/watch-netflix/index.html|title=Instantly watch movies & TV episodes from Netflix on your TiVo box}}</ref>
* [[Viewsonic]] VMP75
* [[Vizio]] Some Blu-ray Disc players and TVs
* '''[[Western Digital]]''' WD Live plus Media Player

===Software support===
Supported Web Browsers by Platform:
* '''[[Microsoft Windows]]''': [[Windows XP]] Service Pack 2, [[Windows Vista]], [[Windows 7]] running [[Internet Explorer]] 6 (or higher), Firefox 2 (or higher) or [[Google Chrome]] 6 (or higher). New viewer requires use of the Microsoft Silverlight technology and a 1.2&nbsp;GHz CPU.<ref>{{cite web|url=http://www.netflix.ca/HowItWorks?autoRedirected=1|title=netflix.ca}}</ref>
* '''[[OS X]]''': An Intel-based Mac with OS 10.4.8 or later. Browser support is Safari 3 (or higher), Firefox 2 (or higher) or [[Google Chrome]]. Mac Netflix was added October 27, 2008, which requires use of the Microsoft Silverlight technology.<ref>{{cite web|last=Topolsky |first=Joshua |url=http://www.engadget.com/2008/10/26/netflix-finally-brings-watch-instantly-to-macs-via-silverlight/ |title=Netflix finally brings 'Watch Instantly' to Macs via Silverlight – Engadget |publisher=Engadget.com |accessdate=November 21, 2008}}</ref>

Other software options:
* '''[[Android (operating system)|Android]]''' Version 2.2 and above. <ref>{{cite web|url=https://play.google.com/store/apps/details?id=com.netflix.mediaclient |title=Netflix on Google Play |publisher=Google |accessdate=Feb 2, 2012}}</ref>
* [[Boxee]] OS X and Windows versions only (beta){{Citation needed|date=July 2010}}
* '''[[Google Chrome OS]]''': Only Intel-based [[Chromebooks]] are supported. Netflix does not support ARM-based Chromebooks yet.<ref>{{cite web |url=http://support.netflix.com/en/node/296#gsc.tab=0 |title=Connect Google Chromebook to Your Netflix Account }}</ref>
* '''[[iOS (Apple)|iOS]]''' [[iPad]],<ref>{{cite web|url=http://blog.netflix.com/2010/04/netflix-available-on-ipad.html |title=Netflix Available on iPad |publisher=Netflix |accessdate=July 19, 2010}}</ref> [[iPhone]],<ref name="iphone announced">{{cite web|url=http://blog.netflix.com/2010/04/netflix-on-iphone.html |title=Netflix on iPhone? |date=April 2, 2010 |publisher=Netflix |accessdate=July 19, 2010}}</ref> [[iPod Touch]],<ref name="iphone announced"/> [[Apple TV]]
* '''[[Linux]]''': Unofficial support is provided to [[Ubuntu (operating system)|Ubuntu]] based distributions with the use of [[Wine (software)]] and other community maintained packages. <ref>{{cite web |url=http://www.iheartubuntu.com/2012/11/ppa-for-netflix-desktop-app.html |title=PPA for Netflix Desktop App }}</ref>
* [[MediaPortal]] Windows using the My Netflix plug-in.{{Citation needed|date=July 2010}}
* [[PlayOn]] Windows, from [[MediaMall Technologies|MediaMall]], used with [[UPnP AV MediaServers#UPnP AV clients (ControlPoint)|UPnP clients]] such as [[PlayStation 3]], [[Wii]] and [[XBMC Media Center]]{{Citation needed|date=July 2010}}
* '''[[Plexapp|Plex]]''' media center for Mac OS X and Microsoft Windows, using the Netflix plug-in from their App Store.{{Citation needed|date=July 2010}}
* [[XBMC]] media center for Mac OS X, Linux, and Microsoft Windows, using the Netflix plug-in from their App Store (not working in Linux).
* '''[[Windows Media Center]]''' [[Windows XP Media Center Edition]], [[Windows Vista]] (Home Premium, Ultimate), [[Windows 7]] (Home Premium, Professional, Enterprise, Ultimate).
* '''[[Windows Phone]]'''

===Video game consoles===
At [[E3 2008]], Microsoft announced a deal to distribute Netflix videos over [[Xbox Live]].<ref>{{cite web|url=http://xbox360.ign.com/articles/888/888869p1.html |title=E3 2008: Microsoft Media Briefing Live Blog |date=July 14, 2008 |work=IGN |accessdate=July 19, 2010}}</ref> This service was launched on November 19, 2008<ref>{{cite web|url=http://www.xbox.com/en-US/community/news/2008/1008-holidaybundles.htm |title=Xbox.com &#124; Xbox News – New Holiday Bundles Include Free Games |publisher=Xbox.com |accessdate=November 21, 2008}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> to [[Xbox 360]] owners with a Netflix Unlimited subscription and an Xbox Live Gold subscription<ref>{{cite web|url=http://www.netflix.com/HowItWorks |title=Netflix Online Movie Rentals – Rent DVDs, Classic Films to DVD New Releases |publisher=Netflix.com |accessdate=November 21, 2008}}</ref> allowing them to stream movies and TV shows directly from their Netflix Instant Queue from an application on the [[Xbox 360 Dashboard|Dashboard]].<ref>{{cite web|url=http://www.msnbc.msn.com/id/25680004 |title=Microsoft partners with Netflix on Xbox Live – On the Level|publisher=Msnbc.msn.com |date=July 14, 2008 |accessdate=November 21, 2008}}</ref> Xbox Live's Party Mode had a popular feature where users could create a virtual party and bring their avatars to a virtual theater to watch Netflix simultaneously and even send comments and smiley faces to each other. This feature was discontinued on December 6, 2011.<ref>{{cite web|url=http://kotaku.com/5866245/say-goodbye-to-netflixs-party-mode-on-the-xbox-360 |title=Say Goodbye to Netflix Party Mode |publisher=kotaku.com |date= December 8, 2011 |accessdate=July 31, 2012}}</ref>

In October 2009, [[Sony Computer Entertainment]] and Netflix announced that the service would also be available on the [[PlayStation 3]] from November 2009. The set-up was similar to that on the Xbox 360, allowing Netflix subscribers to stream movies and TV shows from their Instant Queue to watch on the console. Unlike on the Xbox 360, the Netflix application was originally available on a Blu-ray Disc (available free to subscribers). On October 19, 2010, a downloadable application was made available through the [[PlayStation Network]].<ref>{{cite web|url=http://www.hexus.net/content/item.php?item=26997 |title=Netflix on PS3 without disc |publisher=Hexus.net |date=October 19, 2010 |accessdate=June 29, 2011}}</ref> Users do not have to pay for use of the service other than the monthly Netflix subscription.<ref name=PS3>{{cite web|url=http://www.1up.com/do/newsStory?cId=3176634|title=Netflix Officially Coming to PS3|publisher=[[1UP.com]]}}</ref> In 2012, the PlayStation 3 became the device most used to watch Netflix.<ref name="PS3_2012">
{{Cite news|url= http://www.gameranx.com/updates/id/11214/article/the-ps3-is-what-most-people-use-to-stream-netflix-instant-on/ |title=The PS3 Is What Most People Use To Stream Netflix Instant On|work= Gameranx |date= December 4, 2012|accessdate=December 5, 2012}}</ref>

On January 13, 2010, [[Nintendo]] and Netflix announced that the service would become available on the [[Wii]]. This service was launched in Spring 2010. The service allows the console to stream content in a user's Instant Queue. Initially, a streaming disc specifically for the Wii was required along with an Internet connection to the console. Besides a Netflix account with unlimited streaming, there are no additional costs for the service. In contrast to the other two consoles, the Wii is not capable of HD resolution.<ref>{{cite press release |title=Movies, TV Episodes Streamed Instantly From Netflix Headed to Nintendo's Wii Console This Spring |url=http://netflix.mediaroom.com/index.php?s=43&item=344 |publisher=Netflix |date=January 13, 2010 |accessdate=July 19, 2010}}</ref> The Wii streaming disc was released for testing to customers starting Thursday March 25, 2010, and was released to all registered Netflix members on April 12, 2010.<ref>{{cite press release |title=THOUSANDS OF MOVIES & TV EPISODES FROM NETFLIX NOW AVAILABLE VIA NINTENDO'S Wii CONSOLE |url=http://netflix.mediaroom.com/index.php?s=43&item=354 |publisher=Netflix |date=April 12, 2010 |accessdate=July 19, 2010}}</ref> On October 18, 2010, the streaming disc on the Wii was no longer necessary as Netflix became a free downloadable application on the Wii Shop Channel.

Netflix service launched for the [[Nintendo 3DS]] on July 14, 2011.<ref>{{cite web|last=Heater |first=Brian |url=http://www.engadget.com/2011/07/14/nintendo-confirms-netflix-on-the-3ds-hitting-today/ |title=Nintendo confirms Netflix on the 3DS hitting today |publisher=Engadget|date=July 14, 2011 |accessdate=July 14, 2011}}</ref>

The Netflix application for [[PlayStation Vita]] was launched the same day the device launched on February 22, 2012. Making it available to download it via the PlayStation Store for free.<ref>{{cite web|url=http://playstationlifestyle.net/2012/01/09/netflix-music-unlimited-coming-to-ps-vita/|title=Netflix, Music Unlimited Coming to PS Vita|publisher=PlayStation Lifestyle|date=2012-01-09|accessdate=2012-03-05}}</ref>

The Wii's successor console, the [[Wii U]], began supporting Netflix shortly after its North American release on November 18, 2012.<ref>{{cite web|last=Kerr |first=Dara|url=http://news.cnet.com/8301-1023_3-57551596-93/netflix-is-immediately-available-on-nintendos-wii-u/ |title=Netflix is immediately available on Nintendo's Wii U |publisher=[[CNET]] |date=November 18, 2012 |accessdate=November 25, 2012}}</ref>

===Set-top boxes===
In May 2008, [[Roku]] released the first set-top box to stream Netflix's Instant Watch movies directly to televisions. The device provides unlimited access to the Netflix streaming media catalog for all subscribers, starting at $7.99/month.<ref name="netflix roku announce">{{cite press release |title=Netflix Teams With Streaming Media Innovator Roku on Player That Instantly Streams Movies From Netflix Directly to the TV |url=http://netflix.mediaroom.com/index.php?s=43&item=272 |publisher=Netflix |date=May 20, 2008 |accessdate=July 19, 2010}}</ref>

===Blu-ray Disc players===
In October 2008, Netflix agreed to instantly stream movies to two of [[Samsung]]'s Blu-ray Disc players.<ref>{{cite press release |title=Netflix and Samsung Partner to Instantly Stream Movies on Next Generation Blu-ray Disc Players |url=http://netflix.mediaroom.com/index.php?s=43&item=287 |publisher=Netflix |date=October 23, 2008 |accessdate=July 19, 2010}}</ref> They soon after announced a partnership to instantly stream movies to TiVo DVRs.<ref>{{cite press release |title=TiVo and Netflix Announce Partnership to Instantly Stream Movies and TV Episodes From Netflix Directly to the TV Through TiVo DVRs |url=http://netflix.mediaroom.com/index.php?s=43&item=290 |publisher=Netflix |date=October 30, 2008 |accessdate=July 19, 2010}}</ref>

===Televisions===
In January 2009 Netflix announced a similar partnership with [[Vizio]] and LG to instantly stream movies directly to their high definition televisions.<ref>{{cite press release |title=Netflix Announces Partnership With VIZIO to Instantly Stream Movies to New High Definition TVs |url=http://netflix.mediaroom.com/index.php?s=43&item=299 |publisher=Netflix |date=January 7, 2009 |accessdate=July 19, 2010}}</ref>

In July 2009, Sony announced a partnership with Netflix that will enable Sony BRAVIA Internet Platforms to access instant queues for Netflix users. Any Netflix member with an Internet-enabled BRAVIA HDTV will be able to link up their account to their TV and stream videos from their queue.<ref>{{Cite news|title=Sony Adds Netflix to Bravia Internet Video Platform |newspaper=PRNewswire |date=July 9, 2009 |url=http://www.prnewswire.com/news-releases/sony-adds-netflix-to-bravia-internet-video-platform-62159142.html }}</ref>

The 2010 line of Panasonic HDTVs with Viera Cast functionality gained the ability to stream Netflix content directly to the television.<ref>{{cite web|last=Burns |first=Matt |url=http://www.crunchgear.com/2010/09/10/netflix-now-streaming-on-2010-panasonic-viera-cast-hdtvs-blu-ray-players/ |title=Netflix Now Streaming To 2010 Panasonic VIERA Cast HDTVs & Blu-ray Players |publisher=Crunchgear.com |date=September 10, 2010 |accessdate=June 29, 2011}}</ref>

With 2010's release of the [[Google TV]], Netflix streaming was a built in application.

A Netflix application is available to download on [[Samsung Smart TV]] through the Samsung Apps Service.

===Handheld devices===
*In September 2009, Netflix CEO Reed Hastings expressed his desire to expand his company's video-streaming service to [[Apple Computer|Apple]]'s [[iPhone]] and [[iPod Touch]] mobile devices, once the Xbox 360 exclusivity deal expires.<ref>{{cite web|url=http://news.cnet.com/8301-13506_3-10358727-17.html |title=Netflix CEO hopes to stream to PS3, Wii, iPhone |author=Reisinger, Don |date=September 22, 2009 |work=CNET |accessdate=July 19, 2010}}</ref> In April 2010, the Netflix app debuted on the [[Apple Computer|Apple]]'s [[iTunes]] app store for use with the [[iPad]].<ref>{{Cite news|title= |newspaper=The Salt Lake Tribune |url=http://www.sltrib.com/Business/ci_14815064 }}{{Dead link|date=July 2010}}</ref> The iPhone/ iPod Touch version was released on August 26, 2010 via the App Store.<ref name="iphone announced"/>
*Netflix is also available on [[Windows Phone]] devices.
*On March 15, 2011, it was announced that Netflix was available for [[Android (operating system)|Android]] phones, but not all Android phones can use the application due to [[Digital rights management|DRM]] issues.<ref>{{cite web|url=http://phandroid.com/2011/03/15/netflix-for-android-apk-leaked/ |title=apk file Netflix for Android APK Leaked |publisher=Phandroid.com |date=March 15, 2011 |accessdate=June 29, 2011}}</ref> The DRM was later removed and the app now works on the majority of Android devices.
*Nintendo announced that the [[Nintendo 3DS]] portable video game console would support Netflix video streaming in summer 2011.<ref>{{cite news|url=http://content.usatoday.com/communities/gamehunters/post/2011/03/nintendo-3ds-to-support-netflix-this-summer/1 |title=Nintendo 3DS to support Netflix this late May |date=March 2, 2011 |work=USA Today |accessdate=March 2, 2011 |first=Brett |last=Molina}}</ref>
*Netflix became available on July 14, 2011 on the 3DS, although no 3D content is available at this time.
*In November 2011, Barnes and Noble began shipping [[Nook Tablet]]s with the Netflix app preinstalled, and offering Netflix as an optional app for [[Nook Color]] devices.<ref>{{cite web|work=dmwmedia.com|title=Nook Tablet Comes with Netflix, Hulu Plus and Pandora|author=Chris Marlowe|date=November 8, 2011<!- – 12:23 pm-->|url=http://www.dmwmedia.com/news/2011/11/08/nook-tablet-comes-with-netflix-hulu-plus-and-pandora|accessdate=April 2, 2012}}</ref>
*On January 9, 2012, Sony announced at [[Consumer Electronics Show#2012|CES 2012]] that the [[PS Vita]] would have a Netflix app at launch on Feb 22, 2012.<ref>{{cite news|last=buesch|first=corbin|title=PS VITA Netflix|url=http://blog.us.playstation.com/2012/01/09/it%E2%80%99s-official-netflix-is-coming-to-ps-vita/|date=01122012}}</ref><ref>{{cite web|url=http://techcrunch.com/2011/07/14/netflix-now-streaming-to-north-american-nintendo-3dss/ |title=Netflix Now Streaming To North American Nintendo 3DSs |publisher=TechCrunch |date=July 14, 2011 |accessdate=2012-06-14}}</ref>

==Sales and marketing==
The domain ''netflix.com'' attracted at least 194 million visitors annually by 2008, according to a [[Compete.com]] survey. This is about five times the number of visitors to ''blockbuster.com''.<ref>{{cite web|url=http://siteanalytics.compete.com/netflix.com+blockbuster.com?metric=uv |title=Netflix outruns Blockbuster five-to-one online |publisher=Siteanalytics.compete.com |accessdate=June 29, 2011}}</ref>

During the first quarter of 2011, sales and rentals of packaged DVDs and Blu-ray Discs plunged about 20 percent, and the sell-through of packaged discs fell 19.99 percent to $2.07&nbsp;billion, with more money spent on subscription rentals than in-store rentals.<ref>Mark Hachman, PCmag.com. "[http://www.pcmag.com/article2/0,2817,2384912,00.asp Netflix, Video Kiosks Replacing the Local Video Store]." May 4, 2011. Retrieved May 6, 2011.</ref>

In July 2012 Netflix hired Kelly Bennett to become their new Chief Marketing Officer. Bennett had previously been at Warner Bros. for almost a decade as the VP of Interactive, Worldwide Marketing. This also filled a vacancy at Netflix that had been empty for over six months when their previous CMO Leslie Kilgore left in January 2012.<ref>Lawler, Ryan. July 24, 2012. "Netflix Adds Warner Bros. Exec As Its New Chief Marketing Officer." http://techcrunch.com/2012/07/23/netflix-adds-warner-bros-exec-as-its-new-chief-marketing-officer/</ref>

===Expansion===
Netflix had preliminary plans to expand to the UK in 2004, but the expansion was cancelled as Netflix concentrated its services on the U.S. market.<ref>{{Cite news|first=David|last=Lieberman|url= http://www.usatoday.com/money/media/2004-10-17-netflix-dvd-war_x.htm|title=Netflix, Blockbuster in all-out DVD rental price war|work=USA Today|date=October 18, 2004}}</ref> [[Zip.ca]] currently{{When|date=February 2011}} markets itself as a Canadian equivalent to Netflix. On July 19, 2010 Netflix announced that in the fall of 2010 it would launch its instant streaming service in Canada, making Canada the first international market expansion for Netflix.<ref name="canada">{{Cite news|url= http://netflix.mediaroom.com/index.php?s=43&item=363|title=Netflix To Launch Canadian Service|work=Netflix|date=July 19, 2010}}</ref> On September 22, 2010, Netflix became available in Canada for $7.99/month, but with a severely limited selection.{{Citation}}

Netflix announced on July 5, 2011 that by the end of 2011 it would expand its services into 43 countries and territories in Latin America and the [[Caribbean]], offering items in English, Spanish and [[Portuguese language|Portuguese]].<ref name="reuters latin america">
{{Cite news
| title = Netflix expands online service to Latin America
| newspaper = Reuters US Edition
| publisher = Reuters
| date = July 5, 2011
| url = http://www.reuters.com/article/2011/07/05/us-netflix-idUSTRE7642VV20110705
| accessdate = 2011-07-06
}}
</ref> On September 5, [[Brazil]] became the first country in Latin America to introduce the service, followed by [[Argentina]] on September 7, [[Chile]] on September 8, [[Colombia]] on September 9 and [[Mexico]] on September 12, with the rest of the continent having the service in the next few weeks.{{When|date=September 2011}}

Netflix launched in the UK and Ireland on January 9, 2012.<ref name="BBC News">{{cite news
| title = Netflix launches UK film and TV streaming service
| date = January 9, 2012
| url = http://www.bbc.co.uk/news/technology-16467432
| accessdate = 2012-01-09
|work=BBC News
}}</ref>

===Competitors===
{{See also|Online DVD rental}}
Netflix's success has inspired a number of other DVD rental companies both in the United States and abroad. [[Wal-Mart]] began an online rental service in October 2002, but left the market in May 2005. However, they returned with their acquisition of [[Vudu]] service in 2010.

Netflix has also cited [[Amazon.com]] as a potential competitor,<ref>{{Cite news|first=Ken "Caesar"|last=Fisher|url= http://arstechnica.com/news.ars/post/20050619-5011.html | title=Netflix sees a bright future, sans Amazon competition| publisher=Ars Technica|date=June 19, 2005}}</ref> which until 2008 offered online video rentals in the UK and Germany (which was sold to [[LoveFilm]]). Amazon bought LoveFilm in 2011. In addition, Amazon now streams movies and TV shows on a pay-per-stream basis or on an unlimited basis on selected titles for subscribers to its Amazon Prime service through ''[[Amazon Instant Video]]''.

[[Blockbuster LLC|Blockbuster Video]] entered the U.S. online market in August 2004 with a US$19.95 monthly subscription service. This sparked a [[price war]]; Netflix had raised its popular three-disc plan from US$19.95 to US$21.99 just prior to Blockbuster's launch, but by October Netflix reduced this fee to US$17.99. Blockbuster responded with rates as low as US$14.99 for a time, but by August 2005, both companies settled at the (identical) current rates. On July 22, 2007, Netflix announced that it would drop the prices of its two most popular plans by US$1.00 in an effort to better compete with Blockbuster's online-only offerings.<ref>{{cite news|url=http://www.forbes.com/feeds/ap/2007/07/24/ap3943464.html |title=Netflix Gives Up Profit to Gain Business |author=Liedtke, Michael |date=July 24, 2007 |work=Forbes |accessdate=July 24, 2007 |archiveurl = http://web.archive.org/web/20071015211952/http://forbes.com/feeds/ap/2007/07/24/ap3943464.html |archivedate = October 15, 2007}}</ref> On October 4, 2012, Dish Network announced that it was scrapping plans to make Blockbuster into a Netflix competitor.<ref>{{cite news|url=http://www.pcmag.com/article2/0,2817,2410655,00.asp|title=Blockbuster Abandons Plans for Netflix-Like Streaming Service|publisher=[[PC Magazine]]|accessdate=October 6, 2012}}</ref>

[[Redbox]] is another competitor that uses a [[kiosk]] approach: rather than mailing DVDs, customers pick up and return DVDs at self-service kiosks located in metropolitan areas. In September 2012, [[Coinstar]], the owners of [[Redbox]] announced plans to partner with [[Verizon Communications|Verizon]] to launch ''Redbox Instant by Verizon'' by late 2012.<ref>{{cite web|url=http://www.businessweek.com/news/2012-09-21/redbox-verizon-streaming-to-start-in-time-for-christmas-holiday |title=Redbox-Verizon Streaming to Challenge Netflix by Year-End |work=Businessweek |accessdate=October 6, 2012}}</ref> In early 2013, ''Redbox Instant by Verizon'' began a limited beta release of their service<ref>{{cite web|last=Lawer|first=Richard|title=Redbox Instant beta invites slowly start rolling out, iOS and Android apps appear|url=http://www.engadget.com/2012/12/20/redbox-instant-beta-invites-slowly-start-rolling-out-ios-and-an/|work=Engadget|publisher=Engadget|accessdate=4 February 2013}}</ref> , which was described by critics as "No netflix killer"<ref name=CNET>{{cite web|last=Cheng|first=Roger|title=Redbox Instant is no Netflix killer|url=http://ces.cnet.com/8301-34435_1-57563123/redbox-instant-is-no-netflix-killer/|work=CNET|publisher=CNET|accessdate=4 February 2013}}</ref> due to "glitches [and] lackluster selection."<ref name=NASDAQ>{{cite web|last=Benzinga|title=Redbox Instant Beta Launches with Glitches, Lackluster Selection|url=http://www.nasdaq.com/article/redbox-instant-beta-launches-with-glitches-lackluster-selection-cm205893#.UQ9CEL9EGSo|work=NASDAQ|publisher=NASDAQ|accessdate=4 February 2013}}</ref>

Netflix and Blockbuster largely avoid offering pornography, but several adult-video subscription services were inspired by Netflix, such as [[SugarDVD]] and [[WantedList]].<ref>{{cite news|url=http://www.wired.com/techbiz/media/news/2004/02/62340 |title=Netflix Imitators Are Everywhere |author=Sjöberg, Lore |date=February 19, 2004 |work=Wired |accessdate=July 19, 2010}}</ref><ref>{{cite news|url=http://www.wired.com/wired/archive/13.11/porn.html |title=Skin City |author=McGinn, Daniel |date = November 2005|work=Wired |accessdate=July 19, 2010}}</ref>

Netflix has also been credited with playing a large part in the bankruptcy and shrinkage of several movie rental chains including [[Blockbuster Inc.|Blockbuster]]. Former competitors included [[Hollywood Video]] and [[Movie Gallery]] which both ceased operations in May 2010.

====Time Warner====
In a 2010 ''[[New York Times]]'' interview, Time Warner CEO Jeffrey Bewkes downplayed Netflix as a threat to more traditional media companies. "It’s a little bit like, is the Albanian army going to take over the world?" Bewkes told the newspaper. "I don’t think so." At the same time, he recognized that the company's DVD service may have contributed to a decline in DVD sales, and regarding the industry's willingness to make special deals with Netflix in the future, he added "This has been an era of experimentation, and I think it’s coming to a close."<ref>Tim Arango, New York Times. "[http://www.nytimes.com/2010/12/13/business/media/13bewkes.html?_r=2&ref=media Time Warner Views Netflix as a Fading Star]." December 12, 2010. Retrieved September 19, 2011.</ref> Bewkes later refined his position, stating during a 2011 conference call that "Things like Netflix are welcome additions to the infrastructure. They can monetize value for companies like Warner that maybe there wasn’t – in terms of efficiency for older product, wasn’t as available before[...]Our view of Netflix has been very consistent. I’ve tried at times to be humorous about it, sometimes to make a point."<ref>Matt Phillips, Wall Street Journal blog. "[http://blogs.wsj.com/marketbeat/2011/05/04/time-warner-chief-things-like-netflix-are-welcome-additions/ Time Warner Chief: ‘Things Like Netflix are Welcome Additions’]." May 4, 2011. Retrieved September 19, 2011.</ref>

==Finance and revenue==

===2010===
In 2010, Netflix's stock price increased 219% to $175.70 and it added 8 million subscribers, bringing its total to 20&nbsp;million. Revenue jumped 29% to $2.16&nbsp;billion and net income was up 39% to $161&nbsp;million.<ref>Ben Fritz, LA Times. "[http://latimesblogs.latimes.com/entertainmentnewsbuzz/2011/04/netflix-chief-executive-reed-hastings-compensation-doubled-to-55-million.html?cid=6a00d8341c630a53ef01538e040b70970b Netflix Chief Executive Reed Hastings' compensation doubled to $5.5&nbsp;million]." April 20, 2011. Retrieved April 22, 2011.</ref>

===2011===
In April 2011, Netflix is expected to earn $1.07 a share in the first quarter of 2011 on revenue of $705.7&nbsp;million, a huge increase compared to the year-earlier profit of 59 cents on revenue of $493.7&nbsp;million, according to a survey of 25 analysts polled by FactSet Research.<ref>David B. Wilkerson, Market Watch."[http://www.marketwatch.com/story/netflix-expected-to-post-strong-earnings-2011-04-21?link=MW_latest_news Netflix expected to post strong earnings]." April 21, 2011. Retrieved April 22, 2011.</ref>

At their peak, in July 2011, Netflix shares were trading for $299. Following the customer dissatisfaction and resulting loss of subscribers after the announcements by CEO Reed Hastings that streaming and DVD rental would be charged separately, leading to a higher price for customers who wanted both (on September 1), and that the DVD rental would be split off as the subsidiary [[Qwikster]] (on September 18), the share price fell steeply, to around $130.<ref>{{Cite news|url= http://www.economist.com/node/21530169|title=Netflix messes up|work=The Economist|date=September 24, 2011}}</ref><ref>{{cite web|title=Alternatives for angry Netflix customers: Ticked over the company's price increase? Here's what some of the other video services have to offer|work=money.msn.com|author=doubleace|date=Jul 13, 2011<!-- 3:41PM-->}}</ref> However, on October 10, 2011 the CEO announced that the move to split the company would be scrapped. The reason being that "two websites would make things more difficult", he stated on the Netflix blog. On November 22, Netflix’s share took a tumble, as share prices fell by as much as 7%.<ref>{{cite news|title=Netflix shares hit by bleak 2012 outlook|url=http://www.theglobeandmail.com/globe-investor/netflix-shares-hit-by-bleak-2012-outlook/article2244661/|publisher=Reuters|accessdate=November 24, 2011|location=Toronto|date=November 22, 2011}}</ref> By December 2011, as a consequence of its decision to raise prices, Neflix had lost over 75% of its total value from the summer.<ref>{{cite web|url=https://www.google.com/finance?client=ob&q=NASDAQ:NFLX |title=Netflix, Inc.: NASDAQ:NFLX quotes & news – Google Finance |publisher=Google |accessdate=2012-06-14}}</ref><ref>{{cite web|author=|url=http://www.investorplace.com/2011/10/netflix-stock-nflx-qwikster-subscribers/ |title=Netflix Stock May Never Recover from Qwikster Calamity |publisher=InvestorPlace |date=October 25, 2011 |accessdate=2012-06-14}}</ref> Describing their business model as "broken," Wedbush downgraded Netflix's stock rating to "underperform," the equivalent of sell.<ref>{{cite web|url=http://www.marketwatch.com/story/analyst-calls-netflixs-business-broken-2011-11-30 |title=Analyst calls Netflix’s business ‘broken’ – The Ratings Game |publisher=MarketWatch |accessdate=2012-06-14}}</ref>

===2012===
In Spring 2012, after much speculation from sources, including [[Forbes]]<ref>{{cite web|last=Travlos|first=Darcey|title=Google Buying Netflix Just Makes Sense|url=http://www.forbes.com/2010/11/04/microsoft-google-netflix-apple-markets-video-streaming.html|work=Forbes|publisher=Forbes}}</ref> , [[Google]] expressed interest in acquiring Netflix for $17.9 billion.<ref>{{cite journal|last=Curler|first=Heather|coauthors=Zac Ford, Jordan Jones, Elizabeth Likins, Dan Oliver & Jonathan Sawyer|title=I. Google (Goog) to Acquire Netflix (NFLX)–Strategic Acquisition.|journal=Lpo 2251|date=Spring 2012|year=2012|month=April|url=https://my.vanderbilt.edu/jordanjones/files/2012/04/Google-to-Acquire-Netflix-report1.docx|accessdate=4 February 2013}}</ref>

==Legal issues and controversies==

===Recommendation algorithm and the "Netflix Prize"===
In 2006, Netflix held the first Netflix Prize competition to find a better program to predict user preferences and beat its existing Netflix movie recommendation system, known as Cinematch, by at least 10%. CEO Reed Hastings didn’t necessarily expect a lot of quick progress towards the prize.<ref name=PCOLInnovation/> "We thought we built the best darn thing ever," Hastings said.<ref name=PCOLInnovation>[http://www.nytimes.com/2007/01/31/business/31leonhardt.html New York Times "You Want Innovation? Offer a Prize" by [[David Leonhardt]]. January 31, 2007.]</ref> But by June 2007 Hastings said the competition is "three-quarters of the way there in three-quarters of a year."<ref name=PCOLNewyorktimes2>[http://www.nytimes.com/2007/06/04/technology/04netflix.html New York Times. "Netflix Prize Still Awaits a Movie Seer" by Katie Hafner. June 4, 2007.]</ref> Three teams—an AT&T Research Team called BellKor, commendo's team BigChaos, and Pragmatic Theory—combined to win the 2009 grand prize competition for $1&nbsp;million. The winning team, called BellKor's Pragmatic Chaos, used [[machine learning]] techniques to find that, for example, the rating system people use for older movies is very different from that used for a movie they just saw. The mood of the day made a difference also; for example, Friday ratings were different from Monday morning ratings.<ref>{{cite web |url=http://www2.research.att.com/~volinsky/netflix/ |title=BelKor Home Page |publisher=AT&T Labs, Inc. – Research |accessdate=November 9, 2010}}</ref>

In 2010, Netflix canceled a running contest to improve the company's recommendation algorithm due to privacy concerns: under the terms of the competition, contestants were given access to customer rental data, which the company had purportedly anonymized. However, it was discovered that even this anonymized dataset could, in fact, identify a user personally. Netflix was sued by KamberLaw L.L.C. and ended the contest after reaching a deal with the FTC.<ref>{{Cite news| url=http://www.nytimes.com/2010/03/13/technology/13netflix.html | title=Netflix Cancels Contest After Concerns Are Raised About Privacy | first=Steve | last=Lohr | date=March 12, 2010 |work=The New York Times }}</ref>

===Throttling===

In September 2004, a consumer [[class action lawsuit]], ''Frank Chavez v. Netflix, Inc.'',<ref>[http://www.sftc.org/Scripts/Magic94/mgrqispi94.dll?APPNAME=IJS&PRGNAME=ROA&ARGUMENTS=-ACGC04434884 Class action suit]{{Dead link|date=August 2008}}</ref> was brought against Netflix in [[San Francisco Superior Court]]. The suit alleged [[false advertising]] in relation to claims of "unlimited rentals" with "one-day delivery." In January 2005, Netflix changed its [[Terms of Use]] to acknowledge what has commonly become known as "[[Online DVD rental#"Throttling"|throttling]]". (Mike Kaltschnee, owner of the Hacking Netflix blog, says Netflix calls this practice "smoothing" internally.)<ref>{{cite web|url= http://www.hackingnetflix.com/2005/09/blockbuster_thr.html|title=Blockbuster Throttling|publisher=Hacking Netflix|accessdate=December 17, 2006}}</ref>

In October 2005, Netflix proposed a settlement for those who had enrolled as a paid Netflix member prior to January 15, 2005. These earlier members would be able to renew their subscriptions with a one-month free membership, and those early members with current subscriptions would receive a one-month free upgrade to the next-highest membership level. Netflix's settlement denied allegations of any wrongdoing, and the case did not reach a legal judgment. Netflix estimated the settlement cost at approximately US$4&nbsp;million, which included up to US$2.53&nbsp;million to cover plaintiff lawyer fees. A controversial aspect of the settlement offer was that the customer's account would continue at the renewed or upgraded membership level after the free month provided by the settlement, with customers being charged accordingly unless they opted out after the month-long free period ended. After Trial Lawyers for Public Justice filed a challenge to the proposed settlement<ref>{{cite press release|publisher=Trial Lawyers for Public Justice|title=Court Urged To Strike Down Proposed Netflix Class Action Settlement in Deceptive Advertising Case|url=http://www.tlpj.org/pr/netflix_class_action_010506.htm}}</ref> and the [[Federal Trade Commission]] filed an [[Amicus curiae|amicus]] brief urging the rejection or modification of the settlement, Netflix offered to alter the settlement terms requiring customers to actively approve any continuation after the free month. The final settlement hearing took place on March 22, 2006.<ref>{{cite press release|publisher=Netflix|title=Netflix Claim Form Process|url=http://www.netflix.com/Settlement?mqso=60178549}}</ref> Implementation of the settlement was delayed pending appeal the California Appellate Courts.<ref name="appeal">[http://appellatecases.courtinfo.ca.gov/search/case/mainCaseScreen.cfm?dist=1&doc_id=194535 California Appellate Courts] Chavez v. Netflix Inc. Appeal Status</ref> The settlement was affirmed on April 21, 2008, with the court saying, "the trial court did not abuse its discretion in approving the amended class action settlement agreement, approving the notice given to class members, or determining the amount of fees."<ref>{{cite court |litigants=Chavez v. Netflix Inc. |vol= |reporter= |opinion= |pinpoint= |court=Court of California 1st Appellate District |date=April 21, 2008 |url=http://appellatecases.courtinfo.ca.gov/search/case/disposition.cfm?dist=1&doc_id=194535&doc_no=A115395 |quote=}}</ref> Interestingly, the court approved email notice and an online claims submission process.<ref>{{cite web|url=http://www.uclpractitioner.com/2008/04/new-class-actio.html |title= New class action objector opinion: Chavez v. Netflix, Inc. |accessdate=August 21, 2008 |last=Kralowec |first=Kimberly A. |date=April 28, 2008 |work=The UCL Practitioner }}</ref> The court said:
<blockquote>
The summary notice and long-form notice together provided all of the detail required by statute or court rule, in a highly accessible form. The fact that not all of the information was contained in a single e-mail or mailing is immaterial… Using a summary notice that directed the class member wanting more information to a Web site containing a more detailed notice, and provided hyperlinks to that Web site, was a perfectly acceptable manner of giving notice in this case… The class members conducted business with defendant over the Internet, and can be assumed to know how to navigate between the summary notice and the Web site. Using the capability of the Internet in that fashion was a sensible and efficient way of providing notice, especially compared to the alternative Vogel apparently preferred—mailing out a lengthy legalistic document that few class members would have been able to plow through.
</blockquote>
The settlement was criticized because it paid out $2.5&nbsp;million to attorneys for fees and costs, while offering only coupons to the class members.<ref>{{Cite news|url=http://blogs.wsj.com/law/2008/04/23/attorneys-in-netflix-suit-take-home-2-million-in-fees/ |title=Court Orders Netflix to Deliver $2&nbsp;million in Attorneys Fees |accessdate=August 21, 2008 |last=Slater |first=Dan |date=April 23, 2008 |work=The Wall Street Journal Law Blog |publisher=Dow Jones & Company, Inc. }}
</ref><ref>{{cite web|url=http://www.pcworld.com/article/130003/solutions_for_digital_annoyances.html |title=Solutions for Digital Annoyance |author=Spring, Tom |date=March 27, 2007 |work=PC World |accessdate=August 21, 2008}}</ref>

The Terms of Use have since been amended with terms that indicate such a suit would not be possible in the future:<ref>{{cite web|url=http://www.netflix.com/TermsOfUse#disputes |title=Netflix Terms of Use: Disputes; Governing Law |accessdate=July 31, 2009}}</ref>
<blockquote>
These Terms of Use shall be governed by and construed in accordance with the laws of the state of Delaware, without regard to conflicts of laws provisions. You and Netflix agree that the United States District Court for the Northern District of California and/or the California Superior Court for the County of Santa Clara shall have exclusive jurisdiction over any dispute between you and Netflix relating in any way to the Netflix service or Web site or these Terms of Use. You and Netflix expressly and irrevocably consent to personal jurisdiction and venue in these courts. The parties agree that in any such dispute or subsequent legal action, they will only assert claims in an individual (non-class, non-representative) basis, and that they will not seek or agree to serve as a named representative in a class action or seek relief on behalf of those other than themselves.
</blockquote>

===Releasing this week===
The Netflix website at one time featured a list of titles, "Releasing This Week" (RTW), that enabled customers to easily view new DVDs the company planned for rental release each week.<ref name="All DVDs Releasing This Week">{{cite web| url=http://www.netflix.com/AllNewReleases?lnkctr=NavAllNewReleases| title=All DVDs Releasing This Week| publisher=Netflix| accessdate=October 3, 2009}}</ref> On December 21, 2007, the company removed the link to the page without notice and replaced it with a slider system showing only four previously released movies at a time. The new page, called "Popular New Releases", does not list newly released DVDs for rental.<ref>{{cite web|url=http://www.hackingnetflix.com/2007/12/netflix-removes.html| title=Netflix Removes New Releases Page – Customers Complain |publisher=Hacking Netflix |accessdate=March 25, 2008}}</ref> The listing of new releases is still active,<ref name="All DVDs Releasing This Week"/> although there is no menu option that links to the page.

On January 1, 2008, a Netflix employee unofficially stated on the Netflix Community Blog that customers used the RTW page to add newly released movies to the top of their queues, then complained about delays in receiving them after demand outstripped the supply of DVDs on hand. By removing the page, Netflix sought to quell complaints that these movies were not readily available. Critics, however, have suggested this was just another Netflix attempt at [[Online DVD rental#"Throttling"|throttling]].<ref>{{cite web| title=Happy New Year |url=http://blog.netflix.com/2008/01/happy-new-year.html |publisher=Netflix Community Blog |accessdate=March 25, 2008 }}</ref>

===Dynamic queue, subscription & delivery methods===

On April 4, 2006, Netflix filed a [[patent infringement]] lawsuit in which it demanded a [[jury trial]] in the [[United States District Court for the Northern District of California]], alleging that [[Blockbuster Inc.|Blockbuster]]'s [[online DVD rental]] subscription program violated two patents held by Netflix. The first [[cause of action]] alleged Blockbuster's [[patent infringement|infringement]] of U.S. Patent No. 7,024,381 (issued April 4, 2006; only hours before the lawsuit was filed) by copying the "dynamic queue" of DVDs available for each customer, Netflix's method of using the ranked preferences in the queue to send DVDs to subscribers, and Netflix's method permitting the queue to be updated and reordered.<ref>{{US patent reference|number=7024381|y=2006|m=04|d=04|inventor=Hastings; W. Reed (Santa Cruz, CA), Randolph; Marc B. (Santa Cruz, CA), Hunt; Neil Duncan|title=Approach for renting items to customers}}</ref> The second cause of action alleged infringement of Patent No. 6,584,450 (issued June 24, 2003), which covers in less detail the subscription rental service as well as Netflix's methods of communication and delivery.<ref>{{US patent reference|number=6584450|y=2003|m=06|d=24|inventor=Hastings; W. Reed (Santa Cruz, CA), Randolph; Marc B. (Santa Cruz, CA), Hunt; Neil Duncan (Mountain View, CA)|title=Method and apparatus for renting items}}</ref> The dispute was ended a year later, on June 25, 2007, with both companies declining to disclose the terms of their legal settlement, except for a statement by Blockbuster that it would not have a major impact on its future financial performance.<ref>{{cite web|url=http://biz.yahoo.com/e/070627/bbi8-k.html |title=Form 8-K for BLOCKBUSTER INC |work=Yahoo! Finance }}{{Dead link|date=July 2010}}</ref><ref>hollywoodreporter.com.{{cite news|url=http://www.hollywoodreporter.com/hr/content_display/business/news/e3ia59ea0b884067a222dbb829223af9832 |title=Blockbuster to shutter 282 stores this year |author=Bond, Paul |date=June 29, 2007 |work=The Hollywood Reporter |accessdate=July 19, 2010}} {{Dead link|date=October 2010|bot=H3llBot}}</ref> Blockbuster also said that the company planned to close 282 stores that year to shift focus to its online service. The company already had closed 290 stores in 2006.{{Citation needed|date=July 2010}}

In fall 2006, Blockbuster signed a deal with [[The Weinstein Company]], that gave it the exclusive rental rights to the studio's films beginning January 1, 2007.<ref>{{cite web|url=http://www.videobusiness.com/article/CA6391512.html |title=Blockbuster, Weinsteins sign exclusive deal |work=Variety }}{{Dead link|date=July 2010}}</ref> This agreement forced Netflix to obtain copies from mass merchants or retailers, instead of directly from the studio.<ref>{{cite web|url=http://www.slashfilm.com/article.php/20061116twchomeentertainment |title=How The Weinstein Company ruined Home Entertainment |author=Sciretta, Peter |date=November 16, 2006 |accessdate=July 19, 2010}}</ref> Netflix has speculated that the effect of the Blockbuster-Weinstein agreement could result in higher rental costs and/or fewer copies of the studio's movies, which would limit the number of each movie's DVDs that would be available to subscribers at any one time.<ref>{{cite press release |title=Annual Report |url=http://ir.netflix.com/secfiling.cfm?filingID=1193125-07-42689 |publisher=Netflix |accessdate=July 19, 2010}}</ref> {{As of|2007|6}}, Netflix continues to make available Weinstein movies, including ''[[Unknown (2006 film)|Unknown]]'', ''[[School for Scoundrels (2006 film)|School For Scoundrels]]'' and ''[[Harsh Times]]'', among others. The [[first-sale doctrine]] allows Netflix and other video rental businesses to offer movies released by the Weinstein Company, but the long-term effects of the Blockbuster-Weinstein deal remain uncertain.

===Removal of friends feature===
Since 2004, Netflix subscribers could utilize a feature that allowed them to interact with friends who were also members. This feature was meant to tap into the growing popularity of [[social networking]]. With this feature, users could see how their friends rated a movie on that movie's page; view what DVDs their friends were renting; and allow them to leave their friends notes with film recommendations.<ref name="fastcompany">{{cite web| url = http://www.fastcompany.com/1583922/netflix-offers-case-study-in-how-not-to-do-a-redesign | title = 5 Ways Netflix Could Have Avoided an Ugly User Backlash | first = Cliff | last = Kuang | date = March 16, 2010 | publisher=[[Fast Company (magazine)|Fast Company]]}}</ref><ref name="betanews">{{cite web| url = http://www.betanews.com/article/Netflix-axes-friends-feature-due-to-unpopularity/1268941363 | title = Netflix axes 'friends' feature due to unpopularity | first = Tim | last = Conneally | date = March 18, 2010 | publisher=Betanews}}</ref>

In March 2010, as part of a redesign of its movie-details pages, the Friends feature began to be phased out. Users could no longer see their friends' ratings on movie pages, and what remained of the friends section was moved to a small link at the bottom of each page. The initial announcement about the redesign on Netflix's official blog made no reference to any changes to the Friends feature.<ref>{{cite web| url = http://blog.netflix.com/2010/03/new-movie-details-page-rolled-out.html | title = New Movie Details Page Rolled Out | date = March 4, 2010 | publisher=Netflix}}</ref> Hundreds of angry users posted negative comments, and the feedback prompted Netflix's Vice President of [[Product Management]], Todd Yellin, to post a follow-up statement. While apologizing for poor communication about the changes, Yellin stated that the Friends feature would continue to be phased out, citing figures that only 2% of members used the feature and the company's limited resources to maintain the service.<ref name="fastcompany" /><ref name="betanews" /><ref>{{cite web| url = http://blog.netflix.com/2010/03/friends-update.html | title = Friends Update | date = March 17, 2010 | publisher=Netflix}}</ref> Netflix users also began using the movie-reviews section of the website to post comments protesting the changes.<ref>{{cite web| url = http://www.hackingnetflix.com/2010/03/unhappy-netflix-customers-using-netflix-movie-reviews-to-protest-friends-feature-removal.html | title = Unhappy Netflix Customers using Netflix Movie Reviews to Protest Friends Feature Removal | date = March 14, 2010 | publisher=Hacking Netflix}}</ref>

===Linux support===
Netflix has consistently shown reluctance to support customers using [[Linux]] and other open-source operating systems.<ref name=TechRepublic>{{cite web|url=http://www.techrepublic.com/blog/opensource/the-netflix-linux-conjecture-how-netflix-snubs-the-linux-community/1745|title=The Netflix Linux Conjecture: How Netflix snubs the Linux community |author=Wallen, Jack |date=August 14, 2010}}</ref> The company continues to support only [[Microsoft Windows]], [[OS X]], [[iOS]], and [[Android (operating system)|Android]], relying on [[Microsoft Silverlight]] technology. Steve Swasey, Netflix Vice-President of Corporate Communications, told [[TechRepublic]] that despite the willingness of developers to implement [[digital rights management]] measures in the media framework application [[Moonlight (runtime)|Moonlight]] (an open-source implementation of Silverlight), Netflix cannot be "everything for everybody all the time".<ref name=TechRepublic/>

{{As of|2011|5|9|df=US}}, Google released plans for a Chrome/[[Chrome OS]] plugin that would allow users with the Chrome OS/browser to use said plugin to view and stream material on Netflix, including Linux users.<ref>{{cite web|url=http://www.thechromesource.com/netflix-plug-in-for-chrome-and-chrome-os-is-on-the-way/|title= Netflix Plug-in for Chrome and Chrome OS is on the way |author=West, Jullian|date=May 9, 2011}}</ref> On August 9, 2011, Netflix released a Google Chrome web store item for Chrome OS, PC and Mac, but it does not enable Netflix streaming on Linux machines. On Linux Machines running Chrome Browser, the extension sends users to Netflix.com<ref>{{cite web|url=https://chrome.google.com/webstore/detail/deceagebecbceejblnlcjooeohmmeldh?hl=en-US&hc=hp&hcp=new|title= Netflix – Chrome Web Store}}</ref>

On November 15, 2012, patches to the [[Wine (software)|Wine]] compatibility layer to make viewing of Netflix on Linux and similar systems were announced.<ref name="iheartubuntuannounce">[http://www.iheartubuntu.com/2012/11/netflix-on-ubuntu-is-here.html Netflix on Ubuntu Is Here | iheartubuntu]</ref>

On November 18, 2012, a [[Personal Package Archive|PPA]] and installation files were made publicly available making the installation and use of Netflix much easier for users of [[Ubuntu (operating system)|Ubuntu]] 12.04 and possibly other distributions.<ref name="iheartubuntuppa">[http://www.iheartubuntu.com/2012/11/ppa-for-netflix-desktop-app.html PPA for Netflix Desktop APP | iheartubuntu]</ref>

===Closed captioning===
In March 11, 2011, Don Cullen filed a national class action lawsuit<ref name="cullenvnetflix">[http://www.westonfirm.com/Netflix-Complaint.pdf NATIONWIDE CLASS ACTION FILED AGAINST NETFLIX; LAWSUIT ALLEGES POPULAR MOVIE WEBSITE FAILED TO CAPTION STREAMING VIDEO LIBRARY IN VIOLATION OF STATE AND FEDERAL LAW, MISLED DEAF AND HARD OF HEARING CUSTOMERS]. Cullen v. Netflix, Inc., Case No. CV 11-1199 (N.D. Cal.). Retrieved 3/1/2012</ref> against Netflix alleging Netflix failed to caption streaming video library, and that Netflix misled deaf and hard of hearing customers. In June 2011, the [[National Association of the Deaf (United States)|National Association of the Deaf]] filed a lawsuit against Netflix for not providing [[closed captioning]] on all of its Watch Instantly movies. The group claims that Netflix is violating the [[Americans with Disabilities Act]] by not providing equal access on entertainment.<ref>{{cite web|url=http://news.cnet.com/8301-13578_3-20072619-38/netflix-sued-by-deaf-group-over-lack-of-subtitles/|title= Netflix sued by deaf group over lack of subtitles|author=Whitney, Lance|date=June 20, 2011}}</ref> On November 11, 2011, the court denied a Netflix motion to dismiss the case.<ref name="nadcasedoc32">[http://www.nad.org/sites/default/files/2011/November/Court%20Order%20Denying%20MTD%202011%2011%2010.pdf MEMORANDUM AND ORDER REGARDING DEFENDANT’S MOTION TO DISMISS AMENDED COMPLAINT]. United States DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS. Case 3:11-cv-30168-MAP. Document 32. Retrieved 2011-12-30.</ref>

In March 2012, Netflix announced it had increased the number of programs that are closed captioned. Almost all Netflix-ready devices in distribution today (including all the game consoles, phone apps, tablet apps, TVs, BD players, AppleTV, and the Roku set-top box) are capable of rendering captions.<ref>[http://blog.netflix.com/2012/02/update-on-captioning-for-our-members.html An Update on Captioning for our Members]. Retrieved March 1, 2012</ref>

In July 2012, Netflix announced the formation of an experimental project to [[crowdsourcing|crowdsource]] the closed-captioning effort using the Amara (formerly Universal Subtitles) platform.<ref name=amara1>{{cite web|url=http://gigaom.com/video/netflix-amara-closed-captions-crowdsourcing/|title=Netflix experiments with crowd-sourced captioning|date=2012-07-30|accessdate=2012-10-19|publisher=[[GigaOM]]|last=Roettgers|first=Janko}}</ref> Crowdsourced subtitles, regardless of whether they are transcriptions or translations, are [[derivative work]]s which [[copyright infringement|infringe copyright]] if created or distributed without consent from the film's copyright owner.<ref name=amara2>{{Cite news|newspaper=[[The Wall Street Journal]]|url=http://online.wsj.com/article/SB10000872396390444592404578033301429532328.html|title=Lost in Translation, Found in Subtitles|last=Paletta|first=Anthony|date=2012-10-03|accessdate=2012-10-19}}</ref> Amara operates under [[Digital Millennium Copyright Act|DMCA]] safe-harbor provisions which indemnify it from secondary copyright infringement [[lawsuit]]s over user-uploaded content, and presumably Netflix would not publish any subtitles produced by this effort without authorization. Netflix was careful to say it is not committed to using any subtitles produced by the crowdsourcing project.<ref name=amara1/>

In October 2012, Netflix was found to be offering the television series ''[[Andromeda (TV series)|Andromeda]]'' to customers in [[Finland]] with unauthorized subtitles from the [[fansub]] scene.<ref name=tfOct19>{{cite web|url=http://torrentfreak.com/netflix-caught-using-pirated-subtitles-in-finland-121019/|title=Netflix Caught Using "Pirated" Subtitles in Finland|author=Ernesto|publisher=TorrentFreak|date=2012-10-19|accessdate=2012-10-19}}</ref> Such subtitles, and motion pictures incorporating them, have long been traded online, resulting in [[cease and desist]] notices, [[notice and take down|takedowns]], and copyright infringement lawsuits against traders, website operators, and search engines; even criminal prosecution happened in one Norwegian case involving the distribution of fan-created subtitles alone.<ref>{{cite web|url=http://torrentfreak.com/student-fined-for-running-movie-tv-show-subtitle-download-site-120608/|title=Student Fined For Running Movie & TV Show Subtitle Download Site|date=2012-06-08|accessdate=2012-10-19|author=Enigmax|publisher=[[TorrentFreak]]}}</ref> When confronted, Netflix apologized and promised to remove the unauthorized translations, but did not explain how the content came to be offered in the first place, or whether other potentially copyright-infringing subtitles exist in the company's repertoire.

==Technical details==

===Streaming===
Netflix streams HD content using [[VC-1|Microsoft VC1AP]] encoding at a maximum bitrate of between 2600 kbit/s and 3800 kbit/s (depending on the movie).<ref>{{cite web|url=http://gizmodo.com/5093323/the-tech-specs-of-hd-netflix-streaming |title=The Tech Specs of HD Netflix Streaming |author=Wilson, Mark |date=November 19, 2008 |work=Gizmodo |accessdate=July 19, 2010}}</ref> A lower bitrate feed<ref>{{cite web |url=http://blog.netflix.com/2008/11/encoding-for-streaming.html |title=Encoding For Streaming |last=Hunt |first=Neil |date=November 6, 2008 |work=Blog.netflix.com |accessdate=June 1, 2011}}</ref> may be supplied if the user's network connection is not capable of handling the maximum bitrate available for the film in question.

Netflix recommends that people stream its movies over a broadband connection with a speed of at least 1.5 megabits per second (1.5 Mbit/s), and that people use an Internet connection of at least 3 megabits per second to get better-looking video on par with a DVD.<ref>J. D. BIERSDORFER, New York Times. "[http://www.nytimes.com/2011/03/17/technology/personaltech/17askk.html?ref=netflixinc How Fast is Netflix?]." March 16, 2011. Retrieved April 22, 2011.</ref>

Netflix provides users the ability to choose their download rates / quality of video on their site (https://account.netflix.com/VideoQuality)

==="Throttling"===
Netflix's allocation policy – referred to by many as "[[DVD-by-mail#"Throttling"|throttling]]" – gives priority shipping and selection to customers who rent fewer discs per month. Higher volume renters may see some of their selections delayed, routed elsewhere, or sent out of order.<ref>{{cite news|url=http://www.businessweek.com/ap/financialnews/D8FMEGTO0.htm?|archiveurl=http://web.archive.org/web/20060215072830/http://www.businessweek.com/ap/financialnews/D8FMEGTO0.htm?|archivedate=February 15, 2006|first=Michael|last=Liedtke|title='Throttling' angers Netflix heavy renters|agency=Associated Press (Internet Archive)|date=February 10, 2005|accessdate=February 11, 2005}}</ref>

Netflix claims that "the large majority of our subscribers are able to receive their movies in about one business day following our shipment of the requested movie from their local distribution center."<ref>{{cite web|url= http://www.netflix.com/TermsOfUse#how|title=Terms of Use|publisher=Netflix|accessdate=January 30, 2006}}</ref> However, not all shipments come from the subscriber's local distribution center, and shipments from distant centers are often delayed, as well.

===Netflix API===
On October 1, 2008, Netflix launched an [[application programming interface]] (API).<ref>{{cite web| title=Netflix API Launches Tomorrow |url=http://www.readwriteweb.com/archives/netflix_api_launches_tomorrow.php |publisher=ReadWriteWeb |accessdate=September 30, 2008 }}</ref> The Netflix API<ref>{{cite web|url=http://developer.netflix.com/ |title=Netflix API – Welcome to the Netflix Developer Network |publisher=Netflix |accessdate=July 19, 2010}}</ref> allows access to data for all Netflix titles as well as access on a user's behalf to manage their movie queue. The API is free and allows commercial use.<ref>{{cite web |url=http://www.mashery.com/customers/netflix |title=Netflix API Management Solution }}</ref> The Developer Network includes a forum for asking and answering questions. A variety of services have been created around the Netflix API or have integrated the API. Examples include XOO.tv, [[Rotten Tomatoes]] and ''[[The New York Times]]'', which allow users to click to add titles to their Netflix queue or begin watching on Watch Instantly from their pages,<ref>{{cite web| title=New York Times & Rotten Tomatoes Add Netflix "Add" & "Watch" Links |url=http://www.hackingnetflix.com/2009/02/ny-times-rotten-tomatoes-add-netflix-add-play-links.html |publisher=HackingNetflix |accessdate=February 20, 2009 }}</ref> and [[Jinni (search engine)|Jinni]], which additionally enables search within Watch Instantly and import of some user information like reviews.<ref>{{cite web| title=Jinni Searches Netflix better than Netflix |url= http://news.cnet.com/8301-17939_109-10199106-2.html |publisher=CNET |accessdate=March 18, 2009 }}</ref>

The API has allowed many developers to release Netflix applications for mobile devices. On November 16, 2009 Netflix released an official Nokia app that allows some trailer streaming.<ref>{{cite web | url = http://blog.netflix.com/2009/11/netflix-for-nokia-phones.html | title = Netflix for Nokia Phones | accessdate =April 2, 2011 | last = Hart | first = Michael | date = November 16, 2009 | publisher=Netflix}}</ref> An official [[iPhone]] app was released on August 26, 2010.<ref name="iphone announced" /> In June 2012, Netflix announced that it would be cutting back the availability of its public API.<ref>{{cite web | url = http://developer.netflix.com/blog/read/Upcoming_Changes_to_the_Netflix_API_Program | title = Upcoming Changes to the Netflix API Program | accessdate = June 21, 2012 | date = June 15, 2012 | publisher = Netflix}}</ref>

===IT infrastructure===
In 2010, Netflix migrated its infrastructure to [[Amazon EC2]]. Master Copies of digital films from [[movie studio]]s are stored on [[Amazon S3]], and each film is encoded into over 50 different versions based on video resolution, audio quality using machines on the [[cloud computing|cloud]]. In total, Netflix has over 1 [[petabyte]] of data stored on Amazon, and the data are sent to [[content delivery network]]s (including [[Akamai Technologies|Akamai]], [[Limelight Networks|Limelight]], and [[Level 3 Communications|Level 3]]) that feed the content to local ISPs. Netflix uses a number of pieces of [[open-source software]] in its backend, including [[FreeBSD]] and [[nginx]],<ref>{{cite web |url= https://ripe64.ripe.net/presentations/89-Netflix_RIPE_April_2012.pdf |title=Netflix Content Delivery |author=David Temkin |date=April 2012 |publisher=RIPE |accessdate=April 19, 2012}}</ref> [[Java (software platform)|Java]], [[MySQL]], [[Gluster]], [[Apache Tomcat]], [[Apache Hive|Hive]], Chukwa, [[Apache Cassandra|Cassandra]], and [[Apache Hadoop|Hadoop]].<ref>{{YouTube|id=Idu9OKnAOis|title=OSCON Data 2011, Adrian Cockcroft, "Data Flow at Netflix"}}</ref>

====Open Source====
Netflix has made available as open source many of its internally developed infrastructure management products starting January 11, 2012.<ref>{{cite web | url=http://netflix.github.com/|title=Commit Timeline|accessdate=November 2, 2012}}</ref><ref>{{cite web | url=https://github.com/netflix | title=Repository List }}</ref> This includes facilities for automatically scaling a service's hardware footprint and resources, as well as monitoring and maintaining the resiliency of all the supporting infrastructure through the [https://github.com/Netflix/SimianArmy Netflix Simian Army].

==See also==
{{Portal|San Francisco Bay Area|Companies|Film}}
*[[GameFly]], a similar online video game rental service modeled after Netflix.
*[[Simply Audiobooks]], a similar online rental service for [[audiobook]]s.
*[[LoveFilm]], an [[online video rental]] service in Northern Europe
*[[Evdeizle]], an online video rental service in Turkey
*[[Netflix Prize]], an open competition for the best collaborative filtering algorithm

==References==
{{Reflist|colwidth=30em}}

==External links==
{{Spoken Wikipedia|Netflix.ogg|2006-01-26}}
* {{Official website|http://www.netflix.com}}
* [http://dvd-rent-test.muegel.org/ An Analysis of Netflix's DVD Allocation System]
* [http://www.cbsnews.com/stories/2006/12/01/60minutes/main2222059.shtml The Brain Behind Netflix: Lesley Stahl Profiles Company Founder Reed Hastings]
* [http://online.wsj.com/public/article/SB115255814013802582-M1q9pbUxty8N5ItDg5CdaiVP6_A_20070717.html For Some Netflix Users, Red Envelopes Gather Dust]
* [http://www.chicagotribune.com/entertainment/chi-0804-netflixaug04,0,6424990.story "Behind How Netflix gets your movies to your mailbox so fast"] ''[[The Chicago Tribune]]''. Retrieved January 3, 2010.
* [http://www.boston.com/business/technology/articles/2007/08/23/netflix/ "Behind the scenes at Netflix"]—a photo essay by ''[[The Boston Globe]]'' about Netflix' [[Northborough, Massachusetts]] hub, August 23, 2007.

{{Netflix}}
{{Digital distribution platforms}}

[[Category:Commerce]]
[[Category:Companies based in Silicon Valley]]
[[Category:Companies established in 1997]]
[[Category:1997 establishments in the United States]]
[[Category:Online retail companies of the United States]]
[[Category:Video on demand services]]
[[Category:Video rental services]]
[[Category:Companies listed on NASDAQ]]

Revision as of 16:46, 5 March 2013

netflix is a company that streams videos

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