End of an Era: Netflix Sends Its Last DVDs
After more than 25 years, Netflix is bidding farewell to its mail-order DVD service. In a move experts are calling “the end of an era,” the final DVD discs will be shipped out today from the company’s five remaining distribution centers in California, Texas, Georgia, and New Jersey.
For most Netflix customers who rely on the streaming version of the service, this change won’t affect them at all. However, for the few who are still awaiting their Netflix discs, there’s a silver lining – they get to keep the final DVDs as souvenirs.
Why is This Happening?
Netflix made this significant decision because its DVD rental business has been steadily shrinking, mainly due to the growing popularity of online video streaming. The company, which had 14 million DVD subscribers in 2011, saw this number drop to just two million in 2019 and 1.5 million last year. While the DVD rental business generated $126 million in revenue for Netflix last year, it constituted only 0.4% of the company’s total earnings.
A Fond Farewell
Netflix’s Managing Director, Ted Sarandos, said, “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.”
The iconic red envelopes that once revolutionized how people watched shows and movies at home have played a vital role in paving the way for the shift to streaming.
Mixed Reactions
Fans have expressed their nostalgia and disappointment on social media. Some were surprised that Netflix was still delivering DVDs, while others lamented the decline of physical media in an era dominated by video streaming. Tech experts see it as the “end of an era” for DVD businesses in general, as streaming takes over.
Netflix’s DVD service is an integral part of its early history, having been founded in 1997 as a way to sell or rent items over the internet and mail them to customers’ homes. They initially considered mailing VHS tapes but opted for DVDs when they were introduced in 1997 due to their compact size and light weight.
Streaming’s Ascendancy
While DVDs had their heyday, Netflix also adapted to the changing times. In 2007, they introduced online streaming, a move that marked a significant shift in the industry. Streaming became so popular that, in 2011, Netflix separated DVD rentals and streaming into two platforms. The company’s name, “Netflix,” was chosen with the expectation that DVDs would eventually become obsolete as streaming technology advanced.
So, as Netflix says farewell to its DVD service, it marks the end of a chapter in entertainment history, a chapter that introduced many to the concept of convenient, mail-order movie rentals.