Netflix is shutting down its DVD/blu-ray disc-by-mail service, the initial product that the service was founded on.
In a statement released today, Netflix stated that after twenty-five years of sending out its iconic red envelopes with physical media discs for subscribers it will be shuttering that service this fall. The last day they will send out discs is scheduled for September 29.
After an incredible 25 year run, we’ve made the difficult decision to wind down at the end of September. 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. Making 2023 our Final Season allows us to maintain our quality of service through the last day and go out on a high note.
The move is perhaps the inevitable next step in the ongoing of home video entertainment. The introduction of the home video recorder/player and studios making their back catalog available on cassette for consumers led to the rise of small business rental outlets. In time, those small mom-and-pop shops begat larger, franchised chains of rental stores which drove the smaller businesses out of the marketplace. Those rental chains battled for dominance with Blockbuster becoming the ultimate winner in the space until the ease of use Netflix’s DVD by mail proved more popular with consumers. Blockbuster tried to launch a competing service but were too late and ultimately followed mom-and-pop stores into the mists of business history. (Ironically, Blockbuster once had a chance to acquire the fledgling Netflix company but passed.)
But Netflix’s founder Ted Sandros already had his eye on the future, just waiting for the infrastructure to be able to support his vision of delivering film and television directly to consumers via internet. And once he was able to make that happen, Netflix’s founding business model was relegated to the backseat.
