“Removing and replacing damaged and lost inventory are also cost considerations.”Įven before Netflix announced the news, some longtime subscribers said they could see the writing on the wall. “Moving plastic discs around costs far more money than streaming digital bits,” said Eric Schmitt, senior director analyst at Gartner Research. The cost to operate its DVD business may also be a factor, especially as Netflix rethinks expenses broadly amid heightened streaming competition and broader economic uncertainty. In 2021, Netflix’s non-streaming revenue – mostly attributable to DVDs – amounted to 0.6% of its revenue, or just over $182 million. Its DVD business has also declined significantly in recent years. Shutting down its DVD business could help Netflix better focus resources as it expands into new markets such as gaming as well as live and interactive content. “Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” co-CEO Ted Sarandos wrote in a blog post in April. Michael Inouye, an analyst at ABI Research, said some consumers may still not have access to reliable or fast enough broadband connections, or simply prefer physical media to digital, much in the way that some audio enthusiasts still purchase and collect CDs and records.įor Netflix, however, the offering has made less sense in recent years. Brandon Cordy, a 41-year-old graphic designer from Atlanta, previously told CNN he stuck with DVDs because many digital rentals don’t come with special features or audio commentaries. Some other Netflix users stood by its DVD service not only for the selection but for added perks. “Now I have friends who’ve seen my red Netflix envelopes arrive in the mail, and either didn’t remember what they were or couldn’t believe that I still got the DVDs in the mail.” “I remember I was in high school when I first signed up for it, and the concept was so novel I had to really convince my dad that it was a legit service and not some sort of Internet scam,” said McEvoy, who uses an old Xbox 360 to play his Netflix DVDs.

“I was basically watching them as soon as I got them, and then returning the discs as quickly as possible to get as many as I could,” said McEvoy, who has been using Netflix’s DVD-by-mail service since 2001, just three years after it launched. McEvoy has remained faithful to Netflix’s DVD service so he can keep watching Bollywood and obscure independent films not often found on streaming services. The red envelopes, which have long been synonymous with Netflix itself, littered homes and dorm rooms across the country.Īlthough the idea of receiving a DVD in the mail now may sound almost as outdated as dial-up internet, some longtime customers told CNN they continued to find value in the DVD option.Ĭolin McEvoy, a father of two from Bethlehem, Pennsylvania and a self-described film fanatic, said he rushed through 40 movies in the last few weeks to get through the remainder of his queue before the service ends.

Introduced in 1998 when Netflix first launched, the DVD service promised an easier rental experience than having to drive to the nearest Blockbuster or Hollywood Video. Netflix will continue to accept returns of customers’ remaining DVDs until October 27. The company announced earlier this year it is shutting down its DVD-by-mail service, 16 years after it gradually shifted its focus to streaming content online. Netflix will send out its last red envelope on Friday, marking an end to 25 years of mailing DVDs to members.

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