- In addition to streaming, Netflix also offers a DVD subscription in the United States
- But the company has finally decided to end this activity
- Netflix may be more focused on its low cost subscription and the end of password sharing
Netflix and DVDs are almost over. Today, the American company is known worldwide for its streaming activity. But in its early days, Netflix was a DVD rental specialist in the United States. Moreover, despite the arrival of the streaming platform, it continued to deliver its famous red envelopes. However, everything has an end. And in a post published this week, Netflix announces the end of its DVD business.
It was Ted Sarandos, the co-CEO of the SVOD giant, who made the announcement. After 25 years of existence, Netflix’s DVD rental platform, DVD.com, will cease operations on September 29, 2023. “These iconic red envelopes changed the way people watched shows and movies at home – and they paved the way for the shift to streaming. From the start, our members loved the choice and control offered by direct-to-consumer entertainment: the wide variety of titles and the ability to watch entire series”did he declare.
5.2 billion DVDs later
Netflix thanked the users of this service, and shared some data that shows the importance of this service. Indeed, in 25 years, the company has shipped more than 5.2 billion DVDs. And in all, this service has had more than 40 million unique subscribers. The first DVD released on March 10, 1998 was Beetlejuice, while the most popular title was The Blind Side. It is not known precisely why Netflix is ending this activity. But in any case, it is important to specify that despite the popularity of streaming, Americans still use the DVD.com subscription.
Some use it because they are not tech savvy, others because they have a bad connection. And DVD rental was also a kind of complement to streaming, because it allows access to titles that are not in the SVOD catalog. However, the end of this historic activity of Netflix was foreseeable. Indeed, in 2018, the former CEO of the platform had already suggested that it could end it in 2023.
It is likely that Netflix has decided to do away with DVDs in order to focus on the streaming platform, which is its main activity today. Netflix has just released its quarterly results. And if the number of subscribers to the streaming platform increased by 1.75 million, this is below analysts’ expectations, according to the explanations of the MarketWatch site. Thus, the Netflix action fell after the publication of these results.
Netflix wants to boost its growth
Fortunately, Netflix then saved the day by announcing the progress of its new affordable, partially ad-supported subscription. In the United States, the company is satisfied with the progress of this subscription, whose average total revenue per subscription already exceeds that of the standard paid subscription without advertising. In addition, the catalog of films and series offered on this subscription is now almost the same as the catalog offered on the subscription without ads.
To reassure investors, Netflix also announced a timetable for the end of password sharing in the United States. Combined with the launch of the affordable subscription with advertising, the end of password sharing should allow the platform to increase its number of subscriptions. And the additional revenue generated from these new subscriptions will allow the company to invest even more in content.
