DVD Service: From Envelopes to Machine Learning Algorithms

From hand stuffing envelopes to building machine learning algorithms in five years, Netflix's journey from a DVD rental service to a streaming giant is fascinating. The parallel between the DVD and streaming services is evident, with both aiming to provide direct-to-consumer movie-watching experiences. Netflix's recommendation engine, initially developed for DVDs, later became the foundation for the personalized recommendations we see today. Reed Hastings and Mark Rudolph, the founders, had a grand vision from the start, knowing that DVDs were only temporary. They utilized the success of the DVD business to fuel the streaming service, leading to a whopping 2.6 billion dollars in profits between 2012 and 2019.