Netflix Shuts Down DVD Business: Who Will Take Over the DVD Rental Industry?

Netflix began its DVD rental-by-mail business 25 years ago.

Over the course of its service, Netflix shipped 5 billion DVDs.

There was a point in the late 2000s when almost every mailbox was stuffed with red envelopes.

Just in between 2007 and 2009 alone, Netflix shipped a billion DVDs by mail, with its loyal fans overwhelming the US Postal Service by returning 1.6 million discs every single day.


But now, after 25 years of success, Netflix has sent out its last batch of those famous red envelopes to the remaining DVD subscribers.

Today, on September 29, 2023, Friday, Netflix has officially closed its DVD mail service.

netflix dvd red envelopes

Now, a question arises:

“Who will take over this industry, or can the DVD industry survive?”

Let’s break it down…

Who Will Be The Successors in the DVD Rental Industry?

Who Will Be The Successors in the DVD Rental Industry

The DVD rental business in the US has been shrinking slowly.

Between 2017 and 2022, it went down by an average of 15.3% each year. Now, with Netflix deciding to quit, it’s expected to drop by one-third.

However, the DVD and Blu-ray Disc industry still makes about $1.34 billion every year in the US, selling 94 million units.

As for who will take over the DVD rental business, it’s not clear yet.

Redbox wanted to buy Netflix’s DVD business multiple times, but Netflix said no each time.

However, there are some potential successors:

  1. GameFly: You might know GameFly for mailing video games, but they’re also getting into DVD rentals. They let you pick from thousands of movies and games, and you don’t have to worry about late fees or long contracts. Plus, they give you free shipping and a chance to buy what you’ve rented at a discount.
  2. CafeDVD: CafeDVD is getting noticed because they offer good prices and have a growing collection of DVDs. If you want to keep renting DVDs by mail without spending too much, they’re an option.
  3. DVDInbox: DVDInbox is building up a waiting list, but they want to give you affordable DVD rentals. They might expand their services in the future.
  4. Redbox: You’ve probably seen Redbox’s DVD rental kiosks. They could also jump into the mail-based rental game if they want to.

They all have different prices, how many DVDs they have, and perks for members.

GameFly, for example, has lots of DVDs and games and lets you buy them for less. CafeDVD keeps things affordable, while FACETS has unique and rare films.

Picking the best one depends on what you like and need.

We’ll have to wait and see if other companies step in to fill the hole Netflix left in the DVD rental world.

Leave a Comment