02 Oct Netflix shuts down its DVD rental operation
After 25 years of mailing DVDs to its customers, Netflix is saying goodbye to its DVD-by-mail service. The company announced earlier in the year that it would be shutting down this service, as it has shifted its focus to streaming content online over the past 16 years. You can still return your remaining DVDs to Netflix until October 27.
Back in 1998, when Netflix first started, this DVD service was a convenient alternative to driving to physical video rental stores like Blockbuster. Those iconic red envelopes from Netflix became a common and recognizable site in college dorm rooms and homes across the country.
While receiving DVDs in the mail may sound old-fashioned today, some long-time customers still find tremendous value in it. For instance, Colin McEvoy, a film enthusiast from Pennsylvania, hurried to watch 40 movies from his queue before the DVD service ended. He uses Netflix’s DVD service to access independent and Bollywood films that are hard to find on streaming platforms.
Other Netflix users also stuck with DVDs because they often come with special features and audio commentaries that may not be available in digital rentals.
There are several reasons why some people still prefer DVDs. Some customers don’t have reliable, fast internet connections, and others simply like having physical copies, similar to people who still buy records and CD’s.
For Netflix, however,the DVD service has seen declining profitability in recent times. Co-CEO Ted Sarandos mentioned that it’s challenging to maintain this service as the DVD business continues to shrink. In 2021, non-streaming revenue from DVDs made up only 0.6% of Netflix’s total revenue.
Operating the DVD business also comes with much higher costs compared to digital streaming. The process of moving, managing and replacing physical DVDs can be expensive.
Some long-time subscribers saw the writing on the wall, as the available DVD titles decreased, and receiving new movies took more time.
While some people hoped for a revival of DVD rentals, Netflix has no plans to sell the DVD business. Instead, they will recycle the majority of the DVDs through third-party recycling firms and contribute a portion to film and media-focused organizations.
As a farewell gesture, Netflix is offering subscribers the option to receive up to 10 DVDs selected randomly from their queue.
For Colin McEvoy and others, the end of Netflix’s DVD service means they’ll explore other streaming services to find hard-to-find content. Still, they acknowledge the role Netflix’s DVD service played in their cinematic journey.