Netflix’s legacy DVD-by-mail business barely manages a footnote in the streaming video giant’s financial statements these days. But the U.S.-only business, now called DVD.com, is still hanging in there.
This week, Netflix said its DVD business generated $59 million in revenue in the third quarter. That’s down 18% from the same period last year.
The pace of revenue decline has been slowing this year. Revenue in the DVD unit dropped 20% year over year in the first quarter and 19% in the second quarter.
Netflix stopped giving subscriber numbers and profit figures for the DVD business at the end of 2019. As of Dec. 31, 2019, the Netflix DVD service had 2.15 million subscribers.
Netflix is clearly letting the DVD business wither on the vine. The company doesn’t promote the service, other than through social media accounts.
Netflix likely would shut down the business rather than sell it to someone who could reinvigorate it. The big question is when that will happen. The main determining factor is the profitability of the business. But Netflix is keeping that information to itself now.
So long as Hollywood studios keep producing movies on physical media, there will be a place for DVD.com and Redbox. But once they go all digital, that will be the end for sure.
Related articles:
Netflix Generated $59 Million in Q3 Legacy Disc Rental Revenue (Media Play News; Oct. 20, 2020)
Why Are 2 Million People Still Getting Netflix DVDs by Mail? (Wired; Sept. 16, 2020)
Will Netflix’s DVD Rental Biz Finally Succumb to the ‘Kneecapping’ of the U.S. Postal Service? (Next TV; Sept. 16, 2020)
Photo: Ice cream from Ben & Jerry’s called Netflix & Chill’d. (Netflix)
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