Netflix‘s DVD rental business is closing after 25 years.
The firm has announced that it would “wind down” DVD rental (DVD.com), with the last movie discs being mailed on September 29th. Simply said, the company’s desire for exceptional service is becoming “increasingly difficult” as demand for physical rentals declines.
According to co-CEO Ted Sarandos, “Our goal has always been to provide the best service for our members but as the business continues to shrink that’s going to become increasingly difficult.”
In 2022, the DVD industry produced $145.7 million (a 20% decrease from the previous year), accounting for only 0.5% of overall income. The decision to discontinue the DVD-by-mail service might help Netflix save money, even if the savings are minimal.
Sarandos also wrote, “From the beginning, our members loved the choice and control that direct-to-consumer entertainment offered: the wide variety of the titles and the ability to binge watch entire series.”