Netflix initially both sold and rented DVDs by mail, but the sales were eliminated within a year to focus on the DVD rental business.[19][20] In 2007, Netflix introduced streaming media and video on demand. The company expanded to Canada in 2010, followed by Latin America and the Caribbean. Netflix entered the film and television production industry in 2013, debuting its first series House of Cards. In January 2016, it expanded to an additional 130 countries and then operated in 190 countries.
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In January 2007, the company launched a streaming media service, introducing video on demand via the Internet. However, at that time it only had 1,000 films available for streaming, compared to 70,000 available on DVD.[70] The company had for some time considered offering movies online, but it was only in the mid-2000s that data speeds and bandwidth costs had improved sufficiently to allow customers to download movies from the net. The original idea was a "Netflix box" that could download movies overnight, and be ready to watch the next day. By 2005, Netflix had acquired movie rights and designed the box and service. But after witnessing how popular streaming services such as YouTube were despite the lack of high-definition content, the concept of using a hardware device was scrapped and replaced with a streaming concept.[71]
On July 13, 2022, Netflix announced a partnership with Microsoft to launch an advertising-supported subscription plan.[364] On August 17, 2022, it was reported that Netflix's planned advertising tier would not allow subscribers to download content like the existing ad-free platform.[365] On July 20, 2022, it was announced that the advertising-supported tier would be coming to Netflix in 2023 but it would not feature the full library of content.[366] Netflix US launched with 5.1% of the library unavailable including 60 Netflix Originals.[367] In September, Netflix announced that the launch would be moved up to November 1, 2022,[368][369] but in October, the launch date was changed to November 3, 2022. The ad-supported plan is called "Basic with Ads" and it costs $6.99 per month in the United States.[370] In Canada, the plan was launched two days later, on November 1.[371]
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