DVD rental, which began roughly 25 years ago, was once a major source of revenue for Netflix, which now controls the majority of the global streaming industry.
Netflix has officially announced that it will finally closing down its DVD-by-mail operation, which began roughly 25 years ago and was once a significant source of revenue for the company.
Netflix stated in a blog post that its DVD rental business has been declining over time, requiring them to close locations. The company announced that it will no longer provide DVD rentals and will send out its final DVD on September 29th.
The DVDs, which were sent in red envelopes, tell us a lot about Netflix’s origins and humble beginnings. The company, which is now worth more than $150 billion, was previously reliant on revenue from its DVD rental programme until finding significant success in the digital market.
“Those iconic red envelopes changed the way people watched shows and films at home – and they paved the way for the shift to streaming,” said Netflix Co CEO Ted Sarandos, marking the DVD-by-mail service’s “final season.”
When Netflix first opened its doors in 1997, its main opponent was Blockbuster, a video rental service with locations throughout the United States. To avoid competition, Netflix’s founders sought to offer a unique offering and began home delivery for their DVDs.
The DVD home delivery operation, launched in 1998, was a calculated gamble that helped Netflix establish itself in the already crowded DVD market. According to Netflix co-founder Randolph, the company began with fewer than 1,000 titles.
“”From the start, our members appreciated the variety and control that direct-to-consumer entertainment provided,” Sarandos added.