Netflix, which is now known predominantly as a streaming service giant, is shutting down its original business plan. The company has announced that it will officially be winding down its DVD rental service.
There’s no dramatic reason behind the change, with the decision coming from a shrinking demand for physical rentals. The company says that it has become “increasingly difficult” to offer quality service that meets Netflix’s standards.
Netflix broke into the DVD mailing market all the way back in 1998 and since then has managed to mail over 5.2 billion movies to nearly 40 million customers. It wasn’t until 2007 that Netflix jumped on the on-demand video streaming trend and by 2009, it was the company’s preferred offering. However, the company didn’t offer this service in Canada.
By 2016, with Netflix already well into producing Netflix Original content, the company moved the mailed rentals to DVD.com and began to offload the mailing operations. This included the move to stop mailing DVDs on Saturdays.
The decision could also be a way of rejuvenating what has been a slow start to the year for Netflix, with the first quarter showing low profits and modest subscriber growth. By ditching DVD mailing, Netflix could cut some costs, even if it’s not enough to make any drastic changes.
Netflix’s last movie discs will be shipping out on September 29th, 2023. After that, those looking for physical movie rentals will have to make a run for the nearest Redbox kiosk.
Curious about what’s good on Netflix this month? Find out here.