Netflix has officially announced that it’s ending its DVD mailing service, which used to go by the name DVD.com.
They first hinted at this back in April 2023, and now, on September 29, 2023, Netflix will be mailing out its last red DVD envelope to customers.
Initially, Netflix had planned to collect the DVDs back from customers, but they’ve changed their minds, and customers can now keep their final DVD shipment.
Why Did They Decide To Discontinue DVD Mailing Service After All These Years?
Here’s why Netflix decided to stop sending DVDs by mail after 25 years:
- Focus on Streaming: Netflix has been putting more effort into streaming videos as its main business. These days, most folks prefer watching content through streaming, so Netflix spent a lot of time and money on improving their streaming service. Mailing DVDs didn’t fit this new focus.
- Historical Importance: Netflix started with mailing DVDs before streaming became big. It was a replacement for DVD rental stores. But as more people started streaming, mailing DVDs became less important for their business.
- Qwikster Trouble: In the past, Netflix tried to make a new company called Qwikster just for DVDs. Customers didn’t like this idea, and it caused problems. So, Netflix decided to keep DVDs with their main service.
- Fewer DVD Customers: Even though some folks loved the DVD service, fewer and fewer people were using it. People were moving away from physical DVDs and Blu-rays. This made it hard for Netflix to keep offering a great service to a small group of DVD fans.
- Less DVD Content: Netflix’s streaming library has a lot of shows and movies, but some older or special titles were only on DVD. But because fewer people were using the DVD service, it got tough for Netflix to keep all those titles available.
Note: Netflix had an estimated 1.1 million to 1.3 million DVD rental subscribers at the time of the announcement to shut down the DVD mailing service.
However, Netflix stopped disclosing how many people still pay for DVD-by-mail delivery years ago as that part of its business steadily shrank.
The DVD service generated $145.7 million in revenue last year, which translated into somewhere between 1.1 million and 1.3 million subscribers, based on the average prices paid by customers.
What Will Happen To The Physical Media Rental Industry As a Whole?
Firstly, this is good news for small and medium-sized DVD rental businesses because they will have more customers and less competition.
The DVD rental market in the US is expected to drop by one-third as a result of Netflix’s decision.
But, on the other hand, Netflix’s DVD delivery service was known for offering access to smaller, lesser-known movies that you couldn’t find anywhere else.
Now that this service is gone, it might be tougher for movie enthusiasts to discover these kinds of films, and it could also be the start of the decline for DVD production companies.
But, only time will tell what will happen, so let’s wait and see!