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But after discovering You Tube, and witnessed how popular streaming services were despite the lack of high-definition content, the concept of using a hardware device was scrapped and replaced with a streaming concept instead. Netflix developed and maintains an extensive personalized video-recommendation system based on ratings and reviews by its customers.

The original idea was a "Netflix box" that could download movies overnight, and be ready to watch the next day.

By 2005, they had acquired movie rights and designed the box and service, and was ready to go public with it.

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.

In addition, revenue was up 8% to $945 million for the same period.

In 2007, Netflix expanded its business with the introduction of streaming media, while retaining the DVD and Blu-ray Disc rental service.

The company expanded internationally, with streaming made available to Canada in 2010 Netflix entered the content-production industry in 2013, debuting its first series, House of Cards.

By 2010, Netflix's streaming business had grown so quickly that within months the company had shifted from the fastest-growing customer of the United States Postal Service's first-class service to the largest source of Internet streaming traffic in North America in the evening.