Netflix DVD business dwindling to the die-hards

Netflix still operates a DVD-by-mail service in the U.S. but its subscriber base has dwindled as users switch to streaming services. Netflix also doesn’t put any real marketing efforts into its legacy DVD service.
Netflix ended the second quarter with 2.41 million subscribers to its DVD service. That’s down from 3 million a year ago. Two years ago, it had 3.76 million subscribers. Three years ago, it had 4.53 million. You can see the trend.
With movies being divvied up among a growing number of streaming video services, Netflix’s DVD service now should be more vital to film fans. For instance, while Netflix streaming is losing Disney movies, Netflix DVD will still carry them. Same goes for movies from Universal, Paramount, Warner Bros. and others.
Netflix would be wise to continue investing in its DVD service to take advantage of the situation. But I doubt that it will. The company has gone all-in on streaming.
In the June quarter, the Netflix DVD business generated nearly $46 million in profit on revenue of $76 million. That’s a rounding error compared with the size of its streaming business.

Photo: Netflix DVD mailer (Netflix)