After 23 years, Netflix has announced that it will be ending its DVD rental service, which was the foundation of the company when it launched in 1998.
The last discs will be sent out on September 29th, marking the end of an era.
In a blog post, Netflix co-CEO Ted Sarandos acknowledged the significance of the DVD rental service, stating that it “changed the way people watched shows and movies at home – and they paved the way for the shift to streaming.”
However, with revenue dropping 50% to $100 million by the end of 2022, the company has decided to wind down the service.
Netflix co-founders Marc Randolph and Reed Hastings had initially considered challenging Blockbuster Video with mail-order VHS cassettes, but instead opted for DVDs sold and rented online, which proved to be a calculated risk that paid off.
The DVD rental service allowed Netflix to challenge an entrenched competitor and ultimately led to Blockbuster’s bankruptcy in 2010.
While the DVD rental service may be coming to an end, Netflix remains committed to providing entertainment to its subscribers through its streaming service.
Article updated 2 months ago. Content is written and modified by multiple authors.
