Netflix to End DVD Rental Service After 25 Years
LOS GATOS, Calif. – Netflix announced Tuesday it will officially discontinue its DVD rental service this fall, bringing an end to a quarter-century run that helped establish the streaming giant as a household name. The final red envelope will be mailed on September 29, 2023.
For 25 years, Netflix revolutionized home entertainment by mailing DVDs directly to customers, offering a convenient option to video stores. While the company successfully transitioned to a dominant streaming platform, the DVD service-and its iconic red envelopes-maintained a loyal customer base. However, declining demand has made sustaining the service increasingly difficult. “On September 29th, 2023, we will send out the last red envelope,” the company tweeted. “It has been a true pleasure and honor to deliver movie nights to our wonderful members for 25 years.”
the decision comes as Netflix navigates a changing entertainment landscape and reported a miss for its second-quarter earnings Tuesday,wiht shares falling approximately 6%. co-CEO Ted Sarandos explained the move in a blog post, stating, “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.” He added, “Making 2023 our Final Season allows us to maintain our quality of service through the last day and go out on a high note.”