Netflix, which started as a DVD rental service, will be winding down its original business later this year, after 25 years. The final discs from DVD.com will be shipped on September 29.
“After an incredible 25 year run, we’ve decided to wind down DVD.com later this year,” said Netflix in a blog post.
Netflix said it has aimed to provide the best service for its members. However, with the continued shrinkage of the business, the streaming company said that it has become increasingly challenging to maintain the level of service it provided earlier.
First started as a video library in 1997, selling and renting DVDs, Netflix pivoted into streaming on-demand video, in 2027. Then, the company tried to spin off its DVD rentals as Qwikster in 2011, but that failed. Netflix moved them to DVD.com in 2016. However, by then, the company had shifted focus to producing original shows and did away with mailing DVDs on Saturdays.
Netflix’s first DVD to be sent out was Beetlejuice, which was shipped in 1998. Since then, the company has mailed over 5.2 billion movies in iconic red envelopes to more than 40 million customers, although that stopped in 2019.
“We feel so privileged to have been able to share movie nights with our DVD members for so long, so proud of what our employees achieved and excited to continue pleasing entertainment fans for many more decades to come,” added Netflix.
“To everyone who ever added a DVD to their queue or waited by the mailbox for a red envelope to arrive: thank you.” wrote Ted Sarandos, CEO of Netflix, in the blog post.
Netflix’s decision to discontinue its DVD-by-mail unit seems to be a move to save costs amid mixed revenue. The disc market in the US has been consistently declining for years, with sales dropping by 19 per cent from 2021 to 2022, as per data from VideoScan/MediaPlayNews. This move could be a strategic measure by Netflix to cut costs in response to the declining demand for DVD rentals.
“After an incredible 25 year run, we’ve decided to wind down DVD.com later this year,” said Netflix in a blog post.
Netflix said it has aimed to provide the best service for its members. However, with the continued shrinkage of the business, the streaming company said that it has become increasingly challenging to maintain the level of service it provided earlier.
First started as a video library in 1997, selling and renting DVDs, Netflix pivoted into streaming on-demand video, in 2027. Then, the company tried to spin off its DVD rentals as Qwikster in 2011, but that failed. Netflix moved them to DVD.com in 2016. However, by then, the company had shifted focus to producing original shows and did away with mailing DVDs on Saturdays.
Netflix’s first DVD to be sent out was Beetlejuice, which was shipped in 1998. Since then, the company has mailed over 5.2 billion movies in iconic red envelopes to more than 40 million customers, although that stopped in 2019.
“We feel so privileged to have been able to share movie nights with our DVD members for so long, so proud of what our employees achieved and excited to continue pleasing entertainment fans for many more decades to come,” added Netflix.
“To everyone who ever added a DVD to their queue or waited by the mailbox for a red envelope to arrive: thank you.” wrote Ted Sarandos, CEO of Netflix, in the blog post.
Netflix’s decision to discontinue its DVD-by-mail unit seems to be a move to save costs amid mixed revenue. The disc market in the US has been consistently declining for years, with sales dropping by 19 per cent from 2021 to 2022, as per data from VideoScan/MediaPlayNews. This move could be a strategic measure by Netflix to cut costs in response to the declining demand for DVD rentals.
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