Netflix is ​​shutting down its DVD rental business after 25 years


Netflix announced today that it is shutting down its DVD rental business called ‘DVD-by-Mail’ this year. The company began its DVD-by-mail rental business in 1997. Now, almost 25 years later, the company has decided to discontinue the service.

Explaining the reason behind the company’s decision, Netflix co-CEO Ted Sarandos said that the DVD rental market continues to shrink, making it difficult for the company to continue serving its customers.

“After an incredible 25 years running, we have decided to close at the end of this year. Our goal has always been to provide the best service possible for our members, but as businesses shrink, that becomes increasingly difficult. Therefore, we want to go out on a higher level,” the Netflix co-CEO wrote in a blog post.

“Those iconic red envelopes changed the way people watched shows and movies at home — and they paved the way for a change in streaming,” Sarandos said in a blog post.

“We feel able to share movie nights with our DVD members for so long, are extremely proud of what our staff has accomplished and look forward to delighting entertainment fans for many decades to come,” he added. Excited for.”

Interestingly, Netflix co-founder Mark Randolph also talked about Netflix’s DVD-by-mail business in his autobiography, describing how he and co-founder Reed Hastings started selling blockbuster videos by mail-order. had toyed with the idea of ​​doing the challenge with VHS cassettes, but it would have cost too much. Instead they landed on a more cost-effective proposition: DVDs sold and rented online, Reuters reported.

“Betting on DVD was a risk,” writes Randolph in his book, “That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea … But it could also be our way of finally cracking that category.” Is.

Netflix said it would be shipping its final discs on September 29, 2023.

The post Netflix is ​​shutting down its DVD rental business after 25 years appeared first on Techlusive.

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