Netflix has announced that it will be discontinuing its DVD rental service by the end of 2023 due to the decreasing demand for physical discs and the rising popularity of streaming services. The service was launched in 1998 and at its peak in 2010, it had over 20 million subscribers. However, as Netflix continued to expand its streaming library and faced competition from other online platforms, the DVD rental business lost its appeal.
As of April 2023, only approximately 2 million customers continue to use the DVD rental service, with most of them residing in rural areas where internet access is limited or expensive. Netflix has stated that it will continue to cater to these customers until December 31, 2023, and provide them with a free trial of its streaming service if they choose to switch.
Netflix has also announced that it will donate its remaining inventory of DVDs and Blu-rays to libraries, schools, and non-profit organizations across the country, as well as sell some of them on its website. The company expressed gratitude towards its loyal DVD customers for their support over the years and acknowledged its pride in the service it provided.
Ted Sarandos, Netflix’s co-CEO and chief content officer, said, “We are grateful to our DVD members for their love of movies and TV shows. We hope they will enjoy our streaming service, which offers a wider variety of content and more convenience than ever before.”
