We all know Netflix as the ‘streaming giant’ — offering exceptional streaming service to viewers with thousands of shows and movies on the platform. But way back in 1998, Netflix was popular for its iconic red envelopes where people could pay a monthly fee and rent an unlimited number of DVDs.
However, Netflix has recently announced that it is set to end its more than two-decade signature DVD delivery business and over 5 million mailings on September 29. The company’s co-CEO, Ted Sarandos took to social media on April 18, Tuesday to inform the public about the sad news.
After an incredible 25 year run, we’ve decided to wind down https://t.co/6h2lrcGg2b later this year.
— Netflix (@netflix) April 18, 2023
“After an incredible 25-year run, we’ve decided to wind down DVD.com later this year. 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. So we want to go out on a high, and will be shipping our final discs on September 29, 2023,” he wrote.
Mr. Sarandos also expressed his gratitude to their patrons for using the service over the years.
“To everyone whoever added a DVD to their queue or waited by the mailbox for a red envelope to arrive: thank you”, he said.
In 2007, Netflix launched its streaming service to the public. Shortly after introducing a more convenient way and easier access to different media content, the demand for DVD-by-mail service started to decline.
In 2011, the company tried to establish Quickster, a separate firm for its DVD rental business. After a fair amount of pushback from clients, the revenue from the red envelopes lowered abruptly. Based on Netflix’s financial report, the DVD business generated only $145.7 million last year, or about 0.5% of its total revenue.
Meanwhile, the firm has informed interested users, for the purposes of nostalgia, to download a copy of the data connected with their accounts, which will feature some videos the users have rented.
Goodbye, Netflix DVD rentals. You will be missed!
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