
The company announced that Netflix will ship its final red DVD boxes in September, ending a 25-year lease for subscribers.
The streaming service said in a post that DVDs have changed the way people watch content at home, giving them choice and control over which shows and movies they watch.
The platform-supplied DVDs “paved the way for the transition to streaming,” Netflix co-CEO Ted Sarandos said in a blog post.
“Our goal has always been to provide the best service for our members, but as business continues to shrink, this will become increasingly difficult,” said Mr. Sarandos. The company will close dvd.netflix.com at the end of this year.
Netflix is expected to report first quarter earnings later on Tuesday.
In its “embryo” form, when the company sent the DVDs of their choice to customers in red envelopes won by mail 239,000 subscribers in the first year of operation alone. In essence, users have made a list of movies they would like to watch. Netlfix.com and the company will send them the next movie on their list as soon as they return the previous DVD. With this model, subscribers could keep each movie for as long as they wanted without being charged more than their monthly subscription.
According to the Wall Street Journal
Source: Kathimerini

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