Netflix launched its highly successful streaming service in 2007, allowing users to stream movies and TV shows instantly online, revolutionising the way we consume content.
At first, CEO Reed Hastings separated the streaming service from the DVD rental company, launching Qwikster in 2011 for the latter. However, prices were raised by 60% in the process, which, unsurprisingly, was unpopular with users. In fact, 800,000 subscribers left Netflix, and stocks plummeted as a result.
So, Netflix killed off the DVD rental arm – Qwikster – weeks after its launch, and started to focus on creating original content for its streaming service to attract more users.