Netflix is bringing an end to the service that played a crucial role in its rise to fame. This autumn, the company will bid farewell to its DVD rental service, along with the iconic red envelopes that were a staple of the business.
The final red envelope will be sent out on September 29, 2023, as announced by the company. They expressed gratitude for the opportunity to provide movie nights to their members over the past 25 years.
Co-CEO Ted Sarandos explained in a blog post that their aim has always been to offer the best service possible. However, as the demand for DVDs continues to decline, maintaining that level of service is becoming more challenging. Concluding the service in 2023 allows them to end on a high note while still ensuring quality.
Following the announcement, Netflix reported lower-than-expected earnings for the second quarter, leading to a roughly 6% drop in share prices.