Netflix, the world’s leading streaming entertainment service, has made several bold moves throughout its history. From its humble beginnings as a DVD-by-mail service to its current status as a global streaming giant, Netflix has never shied away from taking risks. However, one particular gamble stands out as the most daring in the company’s history. This article will delve into Netflix’s most risky business move, the factors that led to it, and the impact it had on the company’s trajectory.

The Birth of Netflix

Netflix was founded in 1997 by Reed Hastings and Marc Randolph. Initially, the company operated as a DVD-by-mail service, offering an alternative to traditional video rental stores. Despite facing stiff competition from established players like Blockbuster, Netflix managed to carve out a niche for itself through its innovative subscription model and no late fees policy.

The Shift to Streaming

In 2007, Netflix made its first significant pivot by introducing a streaming service. This move was risky as it required substantial investment in technology and infrastructure. Moreover, it was unclear whether consumers would embrace this new way of consuming content. However, the gamble paid off, and streaming quickly became a significant part of Netflix’s business.

The Most Risky Business Move: Original Content Production

Despite the success of its streaming service, Netflix was not content to rest on its laurels. In 2013, the company made what is arguably its most risky business move to date: it began producing its own original content. The first show, “House of Cards,” was a massive gamble, with a reported budget of $100 million for the first two seasons.

Producing original content was a significant departure from Netflix’s previous business model. It required a massive upfront investment, with no guarantee of success. Moreover, it put Netflix in direct competition with established Hollywood studios and television networks.

The Impact of Original Content

Despite the risks, Netflix’s foray into original content has been a resounding success. “House of Cards” was a critical and commercial hit, and it paved the way for other successful shows like “Stranger Things,” “The Crown,” and “Narcos.” These shows have not only attracted millions of subscribers but also won numerous awards, further enhancing Netflix’s reputation.

Moreover, producing original content has given Netflix more control over its library. This is increasingly important as other media companies pull their content from Netflix to launch their own streaming services.

Lessons from Netflix’s Risky Move

Netflix’s decision to produce original content was undoubtedly risky, but it also demonstrates the importance of innovation and adaptability in business. By continually evolving and taking calculated risks, Netflix has managed to stay ahead of its competitors and redefine the entertainment industry.

Moreover, Netflix’s success shows that businesses should not be afraid to disrupt their own business models. While it’s essential to have a solid foundation, it’s equally important to be willing to pivot when necessary.

In conclusion, Netflix’s most risky business move was its decision to produce original content. This move required a significant investment and put the company in direct competition with established players. However, it has paid off handsomely, helping Netflix attract millions of new subscribers and gain more control over its content library. It serves as a powerful reminder that in business, as in life, fortune often favors the bold.


Alex likes to write about anything related to technology, marketing and gadgets. He sometimes reviews the latest tech and also writes on other blogs.