Netflix closes its DVD service after 25 years and 5.2 billion sold

Netflix announced on Tuesday the closure of its service for selling movies and series in DVD format at home after 25 years in operation and 5,200 million discs sold.

“After 25 years of incredible trajectory, we have decided to close DVD.com at the end of this year. (…) We want to say goodbye in style and we will ship our last discs on September 29, 2023,” the company detailed in a statement. signed by his co-CEO Ted Sarandos.

Netflix’s revenue from the DVD business fell progressively in the last decade to the point that last year it barely billed 146 million dollars, 20% less than in 2021, which represented only 0.5% of its revenues. Total revenue.

In 2010, the Netflix DVD service reached 20 million subscribers, but it gradually lost strength in subsequent years.

“Our goal has always been to offer the best service to our members, but as business slowed down, it became more and more difficult. (…) To everyone who has ever added a DVD to their shopping cart or waited by the mailbox for a red envelope to arrive: Thank you,” Sarandos continued.

Before “streaming” became a lucrative industry approached by entrepreneurs from various sectors, Netflix was a company whose profits revolved around sending DVDs through the mail in easily recognizable red and white envelopes.

In fact, it was these that led to the first foray of the now platform into the world of video on demand back in 2007 and a year earlier in original programming, with titles from the production company Red Envelope Entertainment -in honor of those red envelopes- like “Sherrybaby” and “Zach Galifianakis Live at the Purple Onion.”

A VIDEO CLUB FINE AS THE ORIGIN OF NETFLIX

When the Americans Reed Hastings and Marc Randolph founded a DVD movie rental company called Netflix 25 years ago, no one could have imagined that this company would accumulate a capital of 36,000 million dollars for the distribution of audiovisual content.

Hastings often tells a story that stems from his anger after paying a $30 fine for late returning the “Apollo 13” tape to his trusted video store.

The rise of DVD, an initial catalog of about a thousand titles and the flexibility to return movies up to a week later gave shape to a business idea that skyrocketed into a giant with derivative products and more than 11,500 employees.

“We feel very privileged to have been able to share movie nights with our DVD partners for so long (…) and very excited to continue pleasing entertainment fans for many decades to come,” completed the statement from the first service of ” streaming” worldwide.

Source-listindiario.com