Netflix started in 1997 as a U.S.-only DVD-by-mail business. But now that the company is a global streaming video giant, its legacy DVD business barely merits a footnote in its financial reports.
In its latest quarterly report to the U.S. Securities and Exchange Commission (SEC), Netflix said its DVD revenue fell 23% year over year to $50 million in the first quarter. Meanwhile, its streaming video revenue rose 25% to $7.11 billion. Netflix’s DVD business made up just 0.7% of Netflix revenue in the first quarter.
In its SEC filing, Netflix made only a couple of references to its DVD business in the text. “Additionally, we continue to offer our DVD-by-mail service in the United States,” it said at one point in the 49-page 10-Q report.
I love the Netflix DVD business because of its great movie selection. If it’s available on disc, Netflix likely has it for rental. But there’s no denying that the world is shifting to streaming video.
In the same way that AT&T no longer sells telegraphs, the Netflix DVD business will eventually be retired.
That will be a sad day for movie fans.
Netflix DVD plans start at $7.99 a month for one disc out at a time and $11.99 a month for two discs out at a time. The plans for Blu-ray Discs are $9.99 for one disc out at a time and $14.99 for two discs out at a time.
Enjoy it while it lasts.
Photo: “Tenet” on Netflix DVD.
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