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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.00 per share.

They came up with the idea for Netflix while commuting between their homes in Santa Cruz and Pure Atria's headquarters in Sunnyvale while waiting for government regulators to approve the merger, Randolph admired the fledgling e-commerce company Amazon and wanted to find a large category of portable items to sell over the internet using a similar model.

They considered and rejected VHS tapes as too expensive to stock and too delicate to ship.

Hastings, a computer scientist and mathematician, sold Pure Atria to Rational Software Corporation in 1997 for 0 million in what was then the richest acquisition in Silicon Valley history.In 2005, 35,000 different films were available, and Netflix shipped 1 million DVDs out every day.For some time the company had considered offering movies online, but it was only in the mid-2000s that data speeds and bandwidth costs had improved sufficient to allow customers to download movies from the net.As of late 2006, Red Envelope Entertainment also expanded into producing original content with filmmakers such as John Waters.Netflix has been one of the most successful dot-com ventures.

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It has greatly expanded the production of both film and television series since then, offering "Netflix Original" content through its online library of films and television.

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