Netflix has announced it will end DVD rentals after 25 years.
DVD rental was the backbone of Netflix’s original business model when the company was founded in 1998. Initially, 925 titles were available, and the first to air was a copy of Tim Burton’s 1988 horror comedy. beetle juice.
The rise of Netflix led to the demise of companies like Blockbuster before it transitioned to streaming in the mid-2000s.
DVD rentals accounted for $126m (£101m) of Netflix’s $31.6bn (£25.4bn) revenue last year – just 0.4%.
The company announced revenue of $8.18 billion for the first quarter of 2023, slightly lower than analysts had forecast. However, he added 1.75 million followers after losing over 1 million in the first six months of 2022.
Netflix plans to increase revenue through the rollout of ads and password sharing, although that has been delayed until June.
“While this means that some of the expected growth and revenue benefits for members will decline in the third quarter rather than the second, we believe this will lead to better outcomes for both our members and our business,” the company said in a statement. .
Why is Netflix stopping DVD rentals?
Netflix CEO Ted Sarandos said the company will stop renting the DVD in September as it is less popular.
In a blog post titled “Netflix DVD – The Final Season” on Tuesday, he praised the DVD rental company for laying the foundation for today’s streaming service.
“After an incredible 25 years, we have decided to close DVD.com at the end of this year,” he said.
“Our goal has always been to provide the best service to our members, but as the business continues to shrink, that becomes more difficult. Therefore, we aim high and will release our latest CDs on September 29, 2023.
“These iconic red envelopes have changed the way people watch TV shows and movies at home and paved the way for the transition to streaming. We feel so privileged to be able to share long movie nights with our DVD members, we are so proud of what our staff has achieved and we look forward to continuing to delight entertainment fans for decades to come. To everyone who has ever stood in line for a DVD or waited in the mailbox for a red envelope: thank you.”
Is there a DVD rental in the UK?
Netflix does not offer DVD rentals in the UK, and DVD rentals in general are almost non-existent given streaming capture.
The once popular LoveFilm stopped DVD rentals in 2009 before being acquired by Amazon and merged with Prime Video in 2011.
A site called Cinema Paradiso still offers DVD rentals for at least £10.99 a month, the same as a standard Netflix subscription.
Source: I News
I am Harvey Rodriguez, an experienced news reporter and author with 24 News Reporters. My main areas of expertise are in entertainment and media. I have a passion for uncovering stories about the people behind the scenes that bring the entertainment world to life. I take pride in providing my readers with timely and accurate information on all aspects of the entertainment industry.