Netflix, the streaming giant that has fundamentally changed the way we consume entertainment, is officially shutting down its DVD rental service today, September 29, 2023. This move symbolizes more than just the end of a service; it marks the conclusion of a transformative chapter in the world of home entertainment.
Netflix has sent out 5.2 billion red envelopes to over 40 million consumers
While the company’s announcement came earlier this year, stating that dwindling demand for physical rentals made it difficult to maintain service quality, today’s closure signifies Netflix’s full transition into a digital-first entertainment provider. A journey that began in 1998, with the shipping of its first DVD—Beetlejuice—reaches its finale today. Since then, Netflix has sent out an astonishing 5.2 billion red envelopes to over 40 million customers.
Although the advent of streaming in 2007 swiftly overshadowed DVD rentals, becoming the company’s dominant service by 2009, it’s crucial to remember that it was the DVD business that set the stage. Not only did it introduce on-demand entertainment to millions, but it also provided Netflix with the revenue and customer base needed to invest in the digital future we now take for granted. With over 238 million subscribers today, Netflix has become synonymous with streaming, but its roots in the DVD world were essential to its growth.
The decline in DVD popularity isn’t just a Netflix issue. Global sales for DVDs dropped by 19% from 2021 to 2022, and even Disney stopped DVD and Blu-ray production in Australia. However, Netflix is making this transition a bit sweeter for their remaining DVD aficionados. Subscribers can keep any rentals they currently have and even order up to 10 more movies to help the company clear out its remaining stock.
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(Via)
