The streaming market is increasingly competitive, raising questions about how Netflix has gained its edge and whether it will maintain its hegemony. Barry Diller, an influential entrepreneur, said Netflix won this battle years ago thanks to its scale and ability to maintain large investments in content. Netflix started its streaming service in 2007, after a decade without significant competitors, similar to Amazon's AWS. Before that, Netflix competed with Blockbuster in DVD rental by mail, offering advantages such as no late fees.

In 2000, Netflix attempted to sell itself to Blockbuster for $50 million, but was rebuffed. Ten years later, Netflix became a giant while Blockbuster went bankrupt. Following Blockbuster's bankruptcy in 2011, Reed Hastings, CEO of Netflix, shifted his focus to streaming, investing in original content and expanding globally. This strategy resulted in continued growth and an international user base.

However, in 2022, Netflix experienced its first drop in subscribers in a decade, due to its exit from the Russian market and increased competition. This led to measures such as the end of password sharing and the introduction of an ad-supported plan. Despite these challenges and increased competition from the likes of Apple, Amazon, Warner and Disney, Netflix has gradually begun to recover in 2023.