Which retail innovation by Netflix in 2007 transformed the film and television industry's distribution model before they moved to streaming?

The film and television industry has undergone massive transformation with the rise of streaming services, changing not just how content is delivered but also how it's marketed and monetized. This trivia question focuses on a groundbreaking retail innovation that fundamentally altered the entertainment landscape and consumer behavior patterns. Test your knowledge of how product innovation in this space disrupted traditional business models!

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Unlimited DVD rentals with no late fees through a monthly subscription model
The introduction of interactive movies where viewers could choose their own storyline
The first personalized recommendation algorithm based on viewing habits
Direct-to-consumer movie premieres bypassing theatrical releases