By Bronte Chandler
In 2015 Netflix was released in Australia along with a bunch of other online movie streaming sites and saw the downfall of video shops.
Netflix is a global provider of streaming movies and television series that began in 1988 as an American DVD-by-mail service.
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.
With 42.5 billion hours of streaming in 2015, Netflix is one of the largest video distribution networks in the world.
It is estimated that Netflix subscribers are avoiding approximately 130 hours of commercials per year, one of the perks of online streaming consumers enjoy.
For a monthly subscription ranging from $8.99 – $11.99, consumers have the convenience of an on-demand streaming program at the tip of their fingers.
The creators of Netflix, Marc Randolph and Reed Hastings, created the service after Hastings fell in debt to a video shop for a DVD that that was several weeks late.
The convenience of the monthly fee for Netflix means subscribers can avoid late fees and shipping costs.
With consumers quickly switching over to the streaming, video shops became one of the only things not benefitting from the service.
The online movie streaming world single handedly helped end the movie rental business by offering on demand shows for consumers to watch when and how they wanted.
Streaming serves took advantage of rapidly evolving mobile technology and constantly improving internet speeds to build their business.
According to a survey from Deloitte, U.S. consumers are more inclined to stream entertainment from the internet rather than tune into a television program.
Movie streaming networks started gaining attention and attracting customers by uploading entire seasons at a time.
Once-a-week programming quickly became a thing of the past and streaming services became partly responsible for the binge watching habits that exist today.
Netflix started competing with television networks for original content and became a more attractive alternative for show runners and script writers because it offered upfront contracts to create an entire season or two, not just pilot episodes.
Netflix first advertised original series was House Of Cards in 2013, with 90 percent of subscribers now viewing original content.
The major success of Netflix saw the creation of copycat services such as Stan, Presto and Quickflix.
Online streaming services’ money is made through the sharing economy, by renting out less product to more people by re-using their content.