4 ms·

No. For the first decade plus of its existence, Netflix was a DVD by mail rental service and there, its technology was a key differentiator. You paid a subscrip

No. For the first decade plus of its existence, Netflix was a DVD by mail rental service and there, its technology was a key differentiator. You paid a subscription depending on how many DVDs you wanted to have out at a time, Netflix mailed them to you in red envelopes, and you mailed them back in the same envelope. The ingenious part was that there was a website where you entered in all of the DVDs you wanted and Netflix would mail them to you as they either became available or in order of priority (the original Netflix queue). Yes, you could be pedantic and call a lot of that logistics, but the lack of physical stores, the website, the queue and rating and recommendation system (the Netflix recommendation algorithm was a huge part of its appeal, even after the streaming stuff, until Netflix got sued for accidentally outing someone with the algo), were all tech. Netflix has ALWAYS been a hybrid tech and content company. Always. But it started out very much more on disrupting the video store model the same way Amazon disrupted brick and mortar bookstores.

teawrecks 5y ago
Then all companies are tech companies. They all aim to come up with a product that's better than the last, and they almost never use old tech to do it.
- filmgirlcw 5y ago
  Well, yes. In a certain way, everything is tech. Tech != computers/engineers/algorithms/robots/HAl/whatever. But even in the popular understanding of what a tech company is, Netflix more than many others DOES have historical and current tech bonafides. 25 years ago during dot com mania, there wasn’t a lot of hand-wringing about whether WebVan or Pets.com or Amazon or whatever were tech companies. It was accepted that e-commerce WAS tech, even if it was different than DEC/Compaq/HP or Sun or Microsoft or Apple or whatever. And Netflix operated from a website, used technology for its logistic and delivery system (much like other e-commerce systems)and had a recommendation algorithm (that they had a contest to improve, because they saw that good recommendations reduced churn) and a focus on UX to keep the product good. It took them more than a decade, but the goal of delivering video via the Internet was always there. Roku, which in its original incarnation was simply a Netflix streaming box, was originally ideated and developed at Netflix before the company decided it didn’t want to be in the hardware business and so the head of the project and the engineers left to make Roku. Netflix has done as much work as any single company except perhaps YouTube to optimize and pioneer how to effectively serve large swaths of video to users across the globe. The problem with Ben Evans’ piece is that he misunderstands that Netflix has always been a tech and a content company. Even when it was a rental company with more tech and no original content, the recommendation algorithm and the dedication to buyers and curators who would make the decisions about what DVDs were purchased (eventually customer signals played into this too) always had a very strong content focus in the product. That’s the reason Netflix works. It was the first media company to really innately understand both tech and content. Disney and HBO (WarnerMedia, whatever) have great tech stacks too (especially Disney), but Netflix was the first and is still the most successful.
jbay808 5y ago
My local library has had the same service for about equally long. The only difference is that instead of ordering them to my house, I order them to the nearest branch and then I walk in and pick it up whenever I feel like it. Then I drop them off a couple weeks later. No need to mess with envelopes and shipping. And it's free!
- yurishimo 5y ago
  While I don't disagree that this experience exists in many places, the reality is nowhere near as convenient as you describe it. The waitlist for any movie I want to see is astronomical unless it's a decade old so by the time I get it, I might not be interested anymore. Netflix somehow had the logistics worked out that everyone could get most new movies pretty close to release which I think is why they took off in popularity. Also, the Netflix shipping/return mechanism is arguably more convenient than even driving to the library. The envelopes were prepaid and were built in such a way that opening it uses one part of the packaging, which exposed a tape seam to seal it for return. Chuck that in any mailbox and you're good to go. Better than driving 15 minutes across town to the library to return a movie in the drop-off bin and hope it doesn't get lost and I get charged for it, forcing me to go inside so I know it was returned properly... I want the local library version to get better, but right now it still has a ways to go in my city.

teawrecks 5y ago

Then all companies are tech companies. They all aim to come up with a product that's better than the last, and they almost never use old tech to do it.

filmgirlcw 5y ago
Well, yes. In a certain way, everything is tech. Tech != computers/engineers/algorithms/robots/HAl/whatever. But even in the popular understanding of what a tech company is, Netflix more than many others DOES have historical and current tech bonafides. 25 years ago during dot com mania, there wasn’t a lot of hand-wringing about whether WebVan or Pets.com or Amazon or whatever were tech companies. It was accepted that e-commerce WAS tech, even if it was different than DEC/Compaq/HP or Sun or Microsoft or Apple or whatever. And Netflix operated from a website, used technology for its logistic and delivery system (much like other e-commerce systems)and had a recommendation algorithm (that they had a contest to improve, because they saw that good recommendations reduced churn) and a focus on UX to keep the product good. It took them more than a decade, but the goal of delivering video via the Internet was always there. Roku, which in its original incarnation was simply a Netflix streaming box, was originally ideated and developed at Netflix before the company decided it didn’t want to be in the hardware business and so the head of the project and the engineers left to make Roku. Netflix has done as much work as any single company except perhaps YouTube to optimize and pioneer how to effectively serve large swaths of video to users across the globe. The problem with Ben Evans’ piece is that he misunderstands that Netflix has always been a tech and a content company. Even when it was a rental company with more tech and no original content, the recommendation algorithm and the dedication to buyers and curators who would make the decisions about what DVDs were purchased (eventually customer signals played into this too) always had a very strong content focus in the product. That’s the reason Netflix works. It was the first media company to really innately understand both tech and content. Disney and HBO (WarnerMedia, whatever) have great tech stacks too (especially Disney), but Netflix was the first and is still the most successful.

jbay808 5y ago

My local library has had the same service for about equally long. The only difference is that instead of ordering them to my house, I order them to the nearest branch and then I walk in and pick it up whenever I feel like it. Then I drop them off a couple weeks later. No need to mess with envelopes and shipping. And it's free!

yurishimo 5y ago
While I don't disagree that this experience exists in many places, the reality is nowhere near as convenient as you describe it. The waitlist for any movie I want to see is astronomical unless it's a decade old so by the time I get it, I might not be interested anymore. Netflix somehow had the logistics worked out that everyone could get most new movies pretty close to release which I think is why they took off in popularity. Also, the Netflix shipping/return mechanism is arguably more convenient than even driving to the library. The envelopes were prepaid and were built in such a way that opening it uses one part of the packaging, which exposed a tape seam to seal it for return. Chuck that in any mailbox and you're good to go. Better than driving 15 minutes across town to the library to return a movie in the drop-off bin and hope it doesn't get lost and I get charged for it, forcing me to go inside so I know it was returned properly... I want the local library version to get better, but right now it still has a ways to go in my city.