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[[Image:Netflix-packaging.JPG|thumb|200px|Netflix has patented its rental and delivery process. The discs are returned to Netflix in the same envelopes in which they are sent to customers.]]
Netflix began operations in 1998<ref>{{Web reference | author = Stephen Czar | publishyear = 1998 | url = http://www.dvdfile.com/news/special_report/features/timeline/timeline.htm | title = DVD Historical Timeline | date = 30 January | year = 2006}}</ref> with an online version of a more traditional pay-per-rental model ($4 per rental plus $2 in postage; late fees applied). It did not introduce the monthly subscription concept until late 1999.<ref>{{news reference | firstname=Jeffrey M. | lastname=O'Brien | url=http://www.wired.com/wired/archive/10.12/netflix.html?pg=2 | title=The Netflix Effect | org=Wired News | date=December 2002}}</ref> Since then it has built its reputation on its policies of having no due dates, late fees, shipping or handling fees, or per-title rental fees.
Unlike most online on-demand entertainment services, such as [[EMusic|eMusic]], Netflix's offerings cover the vast range of DVD movies (and increasingly, [[television series]]) with more than 55,000 titles ([[as of 2005]]), including titles by major and minor studios (excluding [[pornographic movie]]s). Particularly, Netflix has become noted for its extensive collection of [[documentary film]]s, [[Japan|Japanese]] [[anime]], and [[independent film]]s, many usually hard to find in traditional rental shops. Indeed, "some 35,000 different film titles are contained in the 1m DVDs it sends out every day."<ref>{{news reference | url=http://www.economist.com/displaystory.cfm?story_id=4149765 | title=Movies to go | org=The Economist | date=[[July 7]], [[2005]]}}</ref> According to [[SEC filing]]s, the company had attracted one million subscribers by the fourth quarter of [[2002]], two million by the second quarter of [[2004]], and three million by the first quarter of [[2005]]. [http://ir.netflix.com/Edgar.cfm]
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