The discontinuation of Netflix’s DVD rental service reflects the growing demand for digital streaming and the company’s focus on its streaming platform.
Streaming giant Netflix ends DVD rental service
Streaming giant Netflix has officially concluded its long-standing subscriber-based DVD rental service, marking the end of an era that began in 1998. The company shipped its final DVD rentals on September 29, 2023, after announcing in April its intention to discontinue the DVD rental business. This decision was driven by a declining demand for physical rentals, making it challenging for Netflix to maintain the desired level of service.
Over the years, Netflix had shipped a staggering 5.2 billion films in their iconic red envelopes to more than 40 million customers. In 2007, the company revolutionized the entertainment industry by introducing streaming on-demand, which quickly became their most popular offering by 2009. Netflix’s expansion into creating its original streaming content led to the platform amassing over 238 million subscribers globally.
While the end of the DVD rental service signifies a significant shift in the entertainment industry, Netflix has offered a silver lining for its customers. Those who still possess a rental disc can keep it, and they even have the option to request up to 10 more films to help the company clear out its remaining inventory. Netflix emphasized that it would not charge for any unreturned discs after September 29, allowing customers to enjoy their final shipments for as long as they wish.
Despite the discontinuation of the DVD rental service, Netflix continues to thrive in the digital streaming landscape. In the second quarter of the year, the company saw an increase of 5.9 million subscribers worldwide, with 1.17 million new members added in the US and Canada alone. Additionally, Netflix expanded its paid sharing feature to more than 100 countries, encompassing over 80 percent of its revenue base.
The decision to conclude the DVD rental service reflects the shifting landscape of the entertainment industry towards digital streaming, where Netflix has solidified its position as a global leader. As the company continues to focus on its streaming platform, it will be interesting to see how it further innovates and adapts to meet the evolving demands of its subscribers.
Inputs from IANS
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