Netflix is ending it’s DVD rental business after 25 years of service, as announced by the company’s CEO Ted Sanders on Tuesday.
This is due to the steady decline in demand for physical rentals, while it’s digital streaming business continues to grow. Netflix’s revenue from DVD rentals contributes to less than 1% of it’s total inflows, with a subscriber base of around 1.5 million.
Closing Shop After 25 Years
The red team in the OTT space, Netflix is ending it’s DVD business after a long career – and finally deciding to focus only on the digital streaming service. This comes from the CEO Ted Sarandos, who stated that DVD.com will close on September 29, citing “continuous shrink” for the demand for DVDs.
The company started shipping them, in their iconic red postages in 1998, with Beetlejuice being their first one and The Blind Side being their most-popular title of all time. Over the years, the company shipped more than 5.2 billion DVDs to over 40 million unique subscribers.
But watching this grand business fall due to the rise of the internet and online streaming platforms, Netflix introduced it’s digital streaming service in 2011 – and has been leading the space since then. While it’s running successfully, Netflix decided to close the DVD service later this year, in September.
Associated Press reported Netflix has 1.5 million DVD subscribers as of November 2022, representing a small fraction of the whole 232.5 million paid subscribers base. And with revenue from DVD rentals being less than 1%, Netflix decided to shut it for good.
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