A Netflix DVD envelope is shown in 2022 in San Francisco. Netflix is poised to shut down its DVD-by-mail rental service. Michael Liedtke/AP hide caption
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Michael Liedtke/AP
A Netflix DVD envelope is shown in 2022 in San Francisco. Netflix is poised to shut down its DVD-by-mail rental service.
Michael Liedtke/AP
SAN FRANCISCO — Netflix is poised to shut down the DVD-by-mail rental service that set the stage for its trailblazing video streaming service, ending an era that began a quarter century ago when delivering discs through the mail was considered a revolutionary concept.
The DVD service, which still delivers films and TV shows in the red-and-white envelopes that once served as Netflix's emblem, plans to mail its final discs on Sept. 29.
Netflix ended March with 232.5 million worldwide subscribers to its video streaming service, but it stopped disclosing how many people still pay for DVD-by-mail delivery years ago as that part of its business steadily shrank. The DVD service generated $145.7 million in revenue last year, which translated into somewhere between 1.1 million and 1.3 million subscribers, based on the average prices paid by customers.
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Netflix, The Streaming Wars, And The Future Of American Entertainment
The growth of Netflix's video streaming service has been slowing down over the past year, prompting management to put more emphasis on boosting profits. That focus may have also contributed to the decision to close an operation that was becoming a financial drain.
But the DVD service was once Netflix's biggest money maker.
Shortly before Netflix broke it off from video streaming in 2011, the DVD-by-mail service boasted more than 16 million subscribers. That number has steadily dwindled and the service's eventual demise became apparent as the idea of waiting for the U.S. Postal Service to deliver entertainment became woefully outdated.
But the DVD-by-mail service still has die-hard fans who continue to subscribe because they treasure finding obscure movies that are aren't widely available on video streaming. Many subscribers still wax nostalgic about opening their mailbox and seeing the familiar red-and-white envelopes awaiting them instead of junk mail and a stack of bills.
"Those iconic red envelopes changed the way people watched shows and movies at home — and they paved the way for the shift to streaming," Netflix co-CEO Ted Sarandos wrote in a blog post about the DVD service's forthcoming shutdown.
The service's history dates back to 1997 when Netflix co-founder Marc Randolph went to a post office in Santa Cruz, California, to mail a Patsy Cline compact disc to his friend and fellow co-founder Reed Hastings. Randolph, Netflix's original CEO, wanted to test whether a disc could be delivered through the U.S. Postal Service without being damaged, hoping eventually to do the same thing with the still-new format that became the DVD.
The Patsy Cline CD arrived at Hastings' home unblemished, prompting the duo in 1998 to launch a DVD-by-mail rental website that they always knew would be supplanted by even more convenient technology.
"It was planned obsolescence, but our bet was that it would take longer for it to happen than most people thought at the time," Randolph said in an interview with The Associated Press last year across the street from the Santa Cruz post office where he mailed the Patsy Cline CD. Hastings replaced Randolph as Netflix's CEO a few years after its inception, a job he didn't relinquish until stepping down in January.
With just a little over five months of life remaining, the DVD service has shipped more than 5 billion discs across the U.S. — the only country in which it ever operated. Its ending echoes the downfall of the thousands of Blockbuster video rental stores that closed because they couldn't counter the threat posed by Netflix's DVD-by-mail alternative.
Even subscribers who remain loyal to the DVD service could see the end coming as they noticed the shrinking selection in a library that once boasted more than 100,000 titles. Some customers also have reported having to wait longer for discs to be delivered as Netflix closed dozens of DVD distribution centers with the shift to streaming.
"Our goal has always been to provide the best service for our members but as the business continues to shrink that's going to become increasingly difficult," Sarandos acknowledged in his blog post.
Netflix rebranded the rental service as DVD.com — a prosaic name that was settled upon after Hastings floated the idea of calling it Qwikster, an idea that was widely ridiculed. The DVD service has been operating from a non-descript office in Fremont, California, located about 20 miles (32 kilometers) from Netflix's sleek campus in Los Gatos, California.
FAQs
Netflix will send out its last red envelope on Friday, marking an end to 25 years of mailing DVDs to members. 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.
Is Netflix going to stop mailing DVDs? ›
"After an incredible 25 year run, we've decided to wind down DVD.com later this year," Netflix co-CEO Ted Sarandos wrote in the message. "Our goal has always been to provide the best service for our members but as the business continues to shrink that's going to become increasingly difficult.
What will happen to the Netflix DVD library? ›
Netflix is shutting down its DVD rental business, and the last disc would be mailed on September 29. Netflix announced on Monday that after the deadline its subscribers have the option to keep any DVDs, telling subscribers, “Please enjoy them for as long as you like!
Does Netflix still have a DVD-by-mail service? ›
The DVD service that has been steadily shrinking in the shadow of Netflix's video streaming service will shut down after its five remaining distribution centers in California, Texas, Georgia and New Jersey mail out their final discs Friday.
Will Netflix get rid of DVDs? ›
Billing for DVD
Your last bill for DVD service was in August and DVD subscriptions were automatically canceled on September 29, 2023. If you had both a streaming and DVD subscription, your streaming subscription isn't affected. View your billing history here. Was this article helpful?
Can I keep my last Netflix DVD? ›
As a parting gift to its loyal DVD-by-mail members, Netflix will let them keep any discs they still have out. The company, which launched as a DVD subscription service 25 years ago, announced this spring that it would wind down the business — which, superseded by streaming, has been dwindling for years.
What is an alternative to Netflix DVD service? ›
2023 Top DVD Rental Services Alternative to Netflix
| Whre to Rent DVDs like Netflix | Price | Maximum Rental Period |
|---|
| Redbox | $1.80 per night for DVDs, $2.00 for Blu-ray. | 7 days |
| 3D-BlurayRental | Starting from $8.99/1 month for 2 DVDs. | As long as you want. |
| Gamefly | Starting from $8.95 one movie per month (no 4k). | As long as you want. |
6 more rowsOct 25, 2023
A Netflix spokesperson told CNN it has no plans to sell the DVD business and will be recycling the majority of its DVDs through third-party companies that specialize in recycling digital and electronic media. It will also donate some of its inventory to organizations focused on film and media.
Can I share my Netflix account with family in a different home? ›
A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to sign up for their own account to watch Netflix. You can manage who uses your account by setting a Netflix Household.
How much is a Netflix DVD plan? ›
Netflix's DVD Plans
The only difference between these plans is the number of discs you can have at once: Basic: $9.99 /month; one disc at a time. Standard: $14.99 /month; two discs at a time. Premium: $19.99 /month; three discs at a time.
Netflix shipped a billion DVDs by mail between 2007 and 2009 alone, with its loyal fans overwhelming the US Postal Service by returning 1.6 million discs every single day.
Why did Netflix change from DVD to streaming? ›
Netflix started out with the idea to make it easier and less expensive for people to watch movies. But they didn't want to stay in the DVD game forever. They had the foresight to predict that consumer behaviors would continue to shift. And, they wanted to stay ahead of the competition.
Is Netflix giving away DVDs? ›
It included a link inviting customers to potentially receive up to 10 extra discs on Sept. 29 — when Netflix's 25-year-old delivery service goes dark. Netflix is marking an end to the era of mailing out DVDs in red envelopes to subscribers by offering to send them these extra discs.
What was the last Netflix DVD shipped? ›
The company also revealed the contents of the final delivery, with the Netflix DVD account writing on X (formerly Twitter), "Inside the last-ever red envelope that we shipped out was… the Blu-ray disc of True Grit (2010)."
Did anyone get extra DVDs from Netflix? ›
Netflix will send 10 extra DVDs to customers, and now says you can keep them. Since this story was first published, Netflix has said its DVD-by-mail customers will not be required to return the 10 DVDs it offered to send them before the service ends in September.
Can you still rent DVDs from Redbox? ›
Rent or Own on DVD, Blu-Ray, 4K, OnDemand, Free Live TV. Redbox.
What was the last DVD mailed by Netflix? ›
The company also revealed the contents of the final delivery, with the Netflix DVD account writing on X (formerly Twitter), "Inside the last-ever red envelope that we shipped out was… the Blu-ray disc of True Grit (2010)."
Will Netflix ever put their movies on DVD? ›
In April, a little more than 25 years after Netflix shipped its first DVD, co-CEO Ted Sarandos announced that the company would be shutting down its disc-mailing business for good at the end of September.
What happened to my Netflix DVD queue? ›
However, Netflix has exited the market and sent out its last DVD shipments on September 29, 2023. After that, the Netflix DVD queue is invalid and you can no longer get DVDs and Blu-rays from Netflix. Don't be frustrated. You still have a chance to save your favorites with the following 2 methods.
