Netflix introduces its Watch Now streaming service
Netflix unveiled an instant-viewing feature that let subscribers stream roughly 1,000 movies and television episodes to PCs instead of waiting for DVDs in the mail. The launch marked the beginning of Netflix's transformation from a physical-disc rental company into a streaming business.
Historical context
Netflix's core business was still DVD-by-mail, and Reed Hastings publicly acknowledged that mainstream online movie viewing faced content and technology barriers. Broadband penetration and PC performance had nevertheless improved enough for Netflix to begin delivering full-length commercial video over the internet.
What happened
On January 16, 2007, Netflix announced a phased rollout of instant online viewing to its subscribers. The initial service streamed video rather than requiring a full download, adjusted quality to available bandwidth and was included with existing Netflix subscriptions, although viewing hours were initially tied to subscription tiers.
Consequences
Watch Now established the strategic path that would eventually make streaming Netflix's central product. It also helped popularize the idea that an existing subscription could provide immediate, on-demand access to a catalog rather than ownership or individual digital rentals.