Netflix Bids Farewell to its DVD Rental Service After a Quarter of a Century
Netflix, a name synonymous with home entertainment, has confirmed its decision to phase out the DVD rental service that played a significant role in its rise to prominence. The renowned streaming platform plans to discontinue its DVD rental service, marked by its iconic red envelopes, this autumn.
The company shared on social media that it would dispatch the final red envelope on September 29, 2023, expressing its gratitude for having the privilege of providing movie nights to its valued subscribers for the past 25 years.
Co-CEO Ted Sarandos acknowledged in a blog post that although their objective has always been to offer the finest service to their members, the continuing decline of the DVD business makes this increasingly challenging. Hence, deciding to bring 2023 as the concluding year allows them to uphold their service quality till the very end and end on a positive note.
On a related note, Netflix's shares saw a decline of approximately 6% following a shortfall in its second-quarter earnings reported after the market closed on Tuesday.