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The DVDs were becoming a hassle for the consumers. The DVD- by- mail was starting the faltering due to competition. So Netflix started doing digital downloads because of the following competitors.

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https://qz.com/887010/netflix-nflx-launched-streaming-video-10-years-ago-and-changed-the-way-we-watch-everything/

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The DVDs became less popular. Most people want the their shows/movies right away so the digital downloads became more popular because now the can get Netflix on TV, online, phones, and laptops.

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Netflix started out by just sending DVD's by mail.  You would have to select what movie you wanted and wait two days to get the movie you wanted. you were able to sign up for one movie or multiple movies at a time.

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Netflix is always trying to get better because they have big competitors such as Hulu, and amazon. Amazon is the biggest competitor against Netflix.

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Netflix is now making their own movies and TV shows. They still have other movies and TV shows but they recently started coming out with their own.

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Netflix was founded on August 29, 1997, in Scott's Valley, California, by Marc Randolph and Reed Hastings.