Netflix began in 1997 as a DVD rental service and pioneered online streaming. By 2011, Netflix had over 26 million subscribers generating over $1.5 billion in revenue as people increasingly watched movies and TV online. While iTunes launched an online music store in 2003 and TV/movies in 2005/2006, Netflix was earlier to the subscription model that allowed unlimited streaming. Online streaming services like Netflix, iTunes, 4oD and BBC iPlayer now offer instant, on-demand access across devices, replacing the need to purchase physical copies of DVDs and Blu-Rays.

1. Media in the Online Age;
Development of Online Film and
Television

2. In 1997, Reed Hastings had a bright idea after reluctantly
paying around $40 of overdue fines to rent Apollo 13 on
DVD - In California, with previous colleague Marc
Randolph, he created Netflix
In 1999, Netflix began to deliver DVD rental, and found
success with a monthly subscription scheme and
personalized video recommendation
Netflix delivered its billionth DVD in 2007, and the
company began the necessary move into on-demand
online streaming

3. Although DVD sales fell between 2006 and 2011 as the
online age dawned, Netflix grew significantly as a
company; by April 2011, over 26 million online
subscriptions had been acquired, generating more than
$1.5 billion in digital revenue
Netflix’s adaptability has allowed it to become a media
organisation giant; by April of 2014, it had gained over
50 million subscribers

4. iTunes Store was initially up and running as an online music
service in 2003. However, it was not until 2005 that television
shows were available for purchase, and 2006 for films; Apple
adhered to the implications of the new chapter in technology
before Netflix did so, but did not move into subscription
schemes, rather online rentals of films or, alternatively, on-
demand purchase for the average price of a DVD/Blu-Ray
Much in the subscriber-friendly ethos however, iTunes offer
season passes for television shows – users can purchase the
season before or during its run, and new episodes will be
automatically downloaded around 24 hours following airtime

5. Channel Four was the first British television channel to
launch an online streaming service – ‘4oD’, in 2006 – a
year following iTunes’ digital TV launch
This service offers on-demand stream for (most) shows
that have recently been shown on Channel4, E4, More4,
and archives. BBC followed the trend in late 2007 with
BBC iPlayer, as did ITV in 2008 with ITV Player; all three
services are now available also on mobile and Playstation,
along with the likes of Netflix and LoveFilm – in this age
of online, multi-platform has, more and more, proven to
be the podium for the mass audiences

6. In 1999, renting a film through a service such as Netflix would involve
waiting a number of days for the DVD to arrive. Likewise, purchasing a
film or TV boxset would obviously imply traveling to the nearest store,
and if you were to rent a feature from a store such as Blockbuster, you
would be restricted to return the disc in order to avoid overdue fine, as
Hastings did
The online age of media has benefitted both the audiences and
institutions behind film and television – as consumers we can instantly
stream or download film and television, and as the online age
progresses and more and more people adapt to digital, institutions
benefit more and more from online marketing - for instance, Google
promotes “Better Call Saul” (TV Drama), both AMC and Netflix are at
advantage

7. Both DVD and cinema ticket sales have inevitably fallen as
result of online services which exploit the comfort and ease of
on-demand. Even as Blu-Ray came about in 2006 and slowly
became popular, the option of HD from online services has
diluted the benefit of DVD over Blu-Ray as now neither are
necessary in physical copy
Although DVD and Blu-Ray have not yet been completely
obliterated by on-demand, it is often speculated that it will
not be long before they become the preservative of a niche,
collector oriented audience – as vinyl was superseded by the
CD and video by the DVD, digital and online will supplant the
DVD and the CD, to be left as narrowly sought after
collectables and passing fads, as vinyl is today