Netflix exiting disc-mailing business after 25 years
Justin Sullivan
Netflix (NASDAQ:NFLX) is getting out of the disc-mailing business after 25 years, an activity that revolutionized movie rentals for a generation of Americans.
The news came just a half-hour before the company reported its quarterly earnings.
"On September 29th, 2023, we will send out the last red envelope," the company said via its DVD.com site. "It has been a true pleasure and honor to deliver movie nights to our wonderful members for 25 years. Thank you for being part of this incredible journey, including this final season of red envelopes."
The company will cancel DVD subscriptions, and those that were signed up for both streaming and DVDs will change to streaming-only.
The practice of mailing subscribers DVDs with prepaid return envelopes had disrupted large video-rental companies like Blockbuster, but the physically mailed discs had become an increasingly small part of Netflix's business.
"Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that's going to become increasingly difficult," the company said. "Making 2023 our Final Season allows us to maintain our quality of service through the last day and go out on a high note."
Take a look at what to watch for in NFLX earnings.