Streaming video services saw a huge boost in subscribers after the Covid-19 pandemic set in starting in early 2020. That includes internet television network Netflix. But Netflix’s legacy U.S.-only, DVD-by-mail service didn’t see a lift in business.
Revenue from Netflix’s DVD business dropped 19.5% year over year in 2020 to $239.4 million, according to a Jan. 28 filing with the U.S. Securities and Exchange Commission.
Sales dropped at a slightly quicker pace in 2020 than in the period year. In 2019, Netflix’s DVD business brought in $297.2 million, down 18.7% from the prior year. Netflix no longer gives subscriber numbers for the DVD service.
Meanwhile, Netflix’s global streaming service pulled in $24.76 billion in sales in 2020, up 25% year over year.
Despite having a much wider selection of movies than any streaming service, Netflix’s DVD business has been on the wane for years. The reasons are manifold.
For starters, people like the immediacy of streaming video services and there’s no shortage of programming to watch on them.
Also, Netflix doesn’t advertise or market its DVD service anymore. It has put its focus almost entirely on streaming.
Finally, and this is a small point, people might be wary of touching physical mail and media during the Covid age.
Photo: Netflix DVD mailers (Patrick Seitz)
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