Netflix is bringing an end to the DVD rental service that played a significant role in its rise to fame. This fall, the company will bid farewell to its DVD business and the iconic red envelopes associated with it.
The final shipment of DVDs will be sent out on September 29, 2023, marking the end of an era. The company expressed gratitude to its members, stating it has been a privilege to provide movie nights for 25 years.
Co-CEO Ted Sarandos explained in a blog post that while their aim has always been to offer top-notch service, the declining DVD market makes it increasingly challenging. Concluding the service in 2023 ensures they can maintain high standards until the very end.
Following the announcement, Netflix reported lower-than-expected earnings for the second quarter, leading to a roughly 6% drop in its stock price.