# What would be the present value of a $1,000 Netflix investment made two decades ago?
If you had put $1,000 into Netflix (NFLX) two decades ago, you would have noticed an amazing return today as a result of the company’s considerable expansion. Netflix has evolved from a DVD rental business to a global streaming behemoth, completely revolutionizing how we watch entertainment.
### Important aspects
* An investment of $1,000 in Netflix stock two decades ago would be worth more than $186,000 now, demonstrating the remarkable returns that early investment can provide.
* Netflix’s successful transition from a DVD rental service to a global streaming leader is attributable to its substantial expansion, which stems from its business model modifications and investment in unique content.
* While Netflix’s stock split in 2015 made it easier for retail investors to acquire shares, its long-term success is primarily due to its global growth strategy and content investment, rather than financial resources.
## Netflix’s operating structure
Netflix has transformed the way we consume content by implementing a subscription-based streaming paradigm. The company, which began as a DVD rental service, has now grown into a streaming giant with arguably one of the greatest video-on-demand platforms and a growing selection of original content.
The company’s business strategy is predicated on subscription revenue streams and provides tiered plans based on features such as video quality and the number of screens. Its vast content collection, which includes licensed material and Netflix Originals such as “Squid Game” and “Stranger Things,” has been critical to its expansion.
Netflix has invested substantially in original programming, spending $16 billion alone in 2024, to diversify its offerings and appeal to audiences in 190 countries around the world.
If you had put $1,000 into Netflix (NFLX) shares two decades earlier, your holdings would be valued at about $186,436 now. That is a considerable return on investment!
