On Friday, the last red envelopes from Netflix will mark the end of a 25-year period of sending DVDs to its members.
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The company announced earlier this year that it would discontinue its service , after 16 years of gradually expanding its presence in the digital content space online. Netflix will continue to accept returns for remaining DVDs from its customers until October 27.
When Netflix first launched in 1998, the DVD service promised a more convenient rental experience than having to go to the nearest DVD club. The red envelopes, long associated with Netflix itself, were distributed to homes and offices across the country.
Although the idea of sending a DVD through the mail now may sound outdated, some of our long-time customers have reported that they still find value in the DVD option.
Colin McEvoy, a father of two from Bethlehem, Pennsylvania, and a self-proclaimed movie buff, says he recently tried to binge-watch 40 movies before subscription . McEvoy has stuck with Netflix's DVD service so he can continue to watch Bollywood and independent films that are rarely found on streaming services.
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Some Netflix users have opted to use the DVD service, not only for the variety of content, but also for the added perks it offers. Brandon Cordy, a 41-year-old graphic designer from Atlanta, previously expressed in an interview with CNN that he preferred DVDs, as many digital DVD rentals do not include special features or audio commentaries.
Michael Inouye, an analyst at ABI Research, said that some consumers still don't have access to reliable or fast enough broadband connections. They either prefer traditional media to play content, or simply choose to buy and collect CDs and records, as some enjoy the rich audio experience they offer.
The company’s move away from shipping DVDs could help Netflix better allocate its resources as it expands into new markets, such as gaming, as well as live and interactive content. Its DVD business has declined significantly in recent years. In 2021, Netflix’s non-streaming revenue — mostly from DVDs — amounted to just 0.6% of total revenue, or just over $182 million.
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The cost of running a DVD business could be a significant factor, especially as Netflix reexamines its overall budget expenses during a time of increased competition from streaming and broader economic uncertainty.
