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=== Transition to streaming services (2007–2012) ===
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.<ref>{{cite news |url=https://arstechnica.com/uncategorized/2007/01/8627/ |title=Netflix offers streaming movies to subscribers |url-status=live |archive-url=https://web.archive.org/web/20170902141413/https://arstechnica.com/uncategorized/2007/01/8627/ |archive-date=September 2, 2017 |date=January 16, 2007}}</ref> 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
In February 2007, Netflix delivered its billionth DVD, a copy of ''[[Babel (film)|Babel]]'' to a customer in Texas.<ref>{{cite news |url=https://www.nbcnews.com/id/wbna17331123 |title=Netflix delivers 1 billionth DVD |agency=[[Associated Press]] |publisher=[[NBC News]] |date=February 25, 2007 |access-date=September 9, 2021 |archive-date=September 9, 2021 |archive-url=https://web.archive.org/web/20210909162614/https://www.nbcnews.com/id/wbna17331123 |url-status=live}}</ref><ref>{{Cite news |url=https://www.reuters.com/article/netflix-billion-idUSN2333114720070226 |title=Texas woman takes one-billionth Netflix delivery |work=[[Reuters]] |date=February 26, 2007 |access-date=September 9, 2021 |archive-date=September 9, 2021 |archive-url=https://web.archive.org/web/20210909162614/https://www.reuters.com/article/netflix-billion-idUSN2333114720070226 |url-status=live}}</ref> In April 2007, Netflix recruited [[ReplayTV]] founder [[Anthony Wood (businessman)|Anthony Wood]], to build a "Netflix Player" that would allow streaming content to be played directly on a television rather than a desktop or laptop.<ref>{{cite news |url=https://www.cnet.com/news/netflix-appoints-vp-of-internet-tv/ |title=Netflix appoints VP of Internet TV |first=Erica |last=Ogg |publisher=[[CNET]] |date=April 16, 2007 |access-date=September 11, 2021 |archive-date=September 11, 2021 |archive-url=https://web.archive.org/web/20210911215439/https://www.cnet.com/news/netflix-appoints-vp-of-internet-tv/ |url-status=live}}</ref> Hastings eventually shut down the project to help encourage other hardware manufacturers to include built-in Netflix support, which would be spun off as the [[digital media player]] product [[Roku]].<ref>{{Cite news |url=https://fortune.com/2012/11/01/rokus-anthony-wood-looks-beyond-the-box/ |title=Roku's Anthony Wood looks beyond the box |first=JP |last=MANGALINDAN |work=[[Fortune (magazine)|Fortune]] |date=November 1, 2012 |access-date=September 11, 2021 |archive-date=September 11, 2021 |archive-url=https://web.archive.org/web/20210911215456/https://fortune.com/2012/11/01/rokus-anthony-wood-looks-beyond-the-box/ |url-status=live}}</ref><ref>{{cite news |url=https://www.forbes.com/sites/angelauyeung/2019/12/16/how-billionaire-anthony-wood-quit-his-netflix-job-founded-roku-and-then-quadrupled-his-fortune-in-the-past-year/ |title=How Billionaire Anthony Wood Quit His Netflix Job, Founded Roku—And Then Quadrupled His Fortune In The Past Year |first=Angel |last=Au-Yeung |work=[[Forbes]] |date=December 31, 2019 |url-access=limited |access-date=September 11, 2021 |archive-date=September 11, 2021 |archive-url=https://web.archive.org/web/20210911215431/https://www.forbes.com/sites/angelauyeung/2019/12/16/how-billionaire-anthony-wood-quit-his-netflix-job-founded-roku-and-then-quadrupled-his-fortune-in-the-past-year/ |url-status=live}}</ref><ref name="Fastcompany">{{cite web |last=Carr |first=Austin |date=January 23, 2013 |title=Inside Netflix's Project Griffin: The Forgotten History Of Roku Under Reed Hastings |url=https://www.fastcompany.com/3004709/inside-netflixs-project-griffin-forgotten-history-roku-under-reed-hastings |url-status=live |archive-url=https://web.archive.org/web/20130123131157/https://www.fastcompany.com/3004709/inside-netflixs-project-griffin-forgotten-history-roku-under-reed-hastings |archive-date=2013-01-23 |access-date=21 June 2020 |website=Fast Company}}</ref>
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