Unanswered questions as Netflix ends DVD-by-mail rental business

Internet television network Netflix announced April 18 that it will end its U.S.-only DVD-by-mail rental service this fall. But the announcement left subscribers and industry watchers with a few unanswered questions.
Netflix’s decision to end its legacy service after 25 years was not surprising, given the company’s focus on streaming video. Since its pivot to online video, Netflix has done no promotion of its DVD service, other than through a modest social media presence.
Netflix declined to say how many subscribers the DVD service now has. Estimates put the subscriber count at roughly 1 million.
Last year, the DVD business generated $145.7 million in revenue, or less than half of 1% of Netflix’s total revenue. It was literally a rounding error for the company.
Faced with a declining user base and diminished economics, Netflix figured the time was right to pull the plug. (Also, Netflix co-founder and longtime chief executive Reed Hastings stepped down as co-CEO in January. His successors were likely less emotionally attached to the legacy business.)
But what’s going to happen to its inventory of thousands of movies and episodic TV series on DVD and high-definition Blu-ray Disc? Netflix won’t say.
The parent company of Redbox, operators of DVD rental kiosks, reportedly tried to buy Netflix’s DVD operations several times but its offers were ignored.
I suspect that Netflix didn’t want to sell the business to a competitor, which might be able to revitalize it through marketing and promotion.
My hope is that Netflix doesn’t trash of its inventory of DVDs. That would be environmentally negative. They could auction off the movies (to Redbox, GameFly or others) or even donate the movies to a library. They still have value.
Netflix will ship its final discs to subscribers on Sept. 29. It will continue to accept returns until Oct. 27, the company said.

Related articles:

Why Netflix Hit Eject on DVDs (The Wall Street Journal; April 21, 2023)

Netflix Is Mailing Its Last DVD. The Die-Hards Are in Mourning. (The Wall Street Journal; April 20, 2023)

No Room for Nostalgia: Netflix Ejects DVD Business (Statista; April 20, 2023)

Redbox Owner Interested in Buying Netflix’s DVD Business (The Hollywood Reporter; April 19, 2023)

By Killing DVD Rentals, Netflix Is Sending an Elitist Message to Middle America (Media Play News; April 19, 2023)