No more red envelopes: Netflix discontinues its DVD mail order service after 25 years

The end of a generation! Netflix closes its service for selling movies and series in DVD format at home After 25 years of activity and over 5.2 billion records sold, a service distinguished by the red envelopes delivered to your home. The news announced on Tuesday, April 18 marks the end of an era in which the company was known for its iconic red and white DVD envelopes, but it goes further.

The decision is due gradual decline in income coming from the DVD business over the last decade. In 2022, Netflix had just $146 million in revenue, 20% less than in 2021, which accounted for just 0.5% of its total revenue. He featured dvd service with the most subscribers in 2010, with 20 million, but was losing steam in the following years.

Netflix has said goodbye to its DVD service with a statement from his co-CEO Ted Sarandos, in which he thanked everyone who added a DVD to their cart or waited for a red envelope by the mailbox. The last shipment of the DVD will be on September 29, 2023 and the company wants to “say goodbye in style”.

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Netflix begins a new phase for the digital service

Before “streaming” became a lucrative industry that would be approached by entrepreneurs from various industries, Netflix was a company whose profits revolved around mailing DVDs. These were what led to the now platform’s first foray into the world of video on demand in 2007 and a year earlier into original programming.

The history of Netflix began 25 years ago, when Americans Reed Hastings and Marc Randolph founded a DVD movie rental company. The idea came about after Hastings paid a $30 fine for late returning the “Apollo 13” tape to his local video store. The company, which began with an initial catalog of one thousand titles, has skyrocketed to become a behemoth with more than 11,500 employees and a capital of 36,000 million dollars for the distribution of audiovisual content.

Although the shutdown of the DVD service marks the end of an era, Netflix remains the leader in the streaming market, with more than 200 million subscribers All over the world. The company has won numerous awards and produced some of the most popular series and films of the past decade, including ‘Stranger Things’, ‘The Crown’, ‘House of Cards’ and ‘Roma’.

As Netflix continues to grow, it may continue to evolve in new directions. The company has invested in the production of original films and series and has signed agreements with some of the major Hollywood studios to ensure access to quality content. Over time, Netflix could continue to innovate in the entertainment industryoffering its users new visual experiences.

The shutdown of Netflix’s DVD service might be sad news for some hardcore users, but it’s also a reminder of how fast the world of entertainment is changing.