By The TV Answer Man team
TV Answer Man, can you explain why Netflix will stop renting DVDs and Blu-rays? We have nowhere else to turn for disc rentals and it was a great service for so many years. Why can’t they just keep doing it with streaming, too? — Shelley, Fort Lauderdale, Florida.
Shelley, Netflix on Friday (September 29) will mail its final red envelope containing a DVD rental. The company previously announced that it’s shuttering the DVD/Blu-ray rental biz after roughly 26 years. It’s a sad day for disc enthusiasts who still prefer hard media over streaming. But it’s also an enviable day. Why is that? Why is Netflix closing its DVD rental shop? Six reasons:
1. Shifting Consumer Preferences
One of the primary reasons behind Netflix’s departure from the DVD rental business is the shift in consumer preferences. In recent years, streaming services have become the dominant mode of content consumption. With the convenience of on-demand streaming, viewers can access a vast library of movies and TV shows at their fingertips, making the concept of renting physical DVDs seem outdated and cumbersome.
2. Declining DVD Market
The DVD market has been in a state of steady decline for years. Physical media sales have been shrinking as digital streaming continues to gain traction. Consumers increasingly prefer the ease of streaming content without the need for physical discs and the hassle of returning DVDs by mail. This decline in demand for DVDs has made it financially unviable for Netflix to continue operating its DVD rental service.
3. Cost-Efficiency
Managing a DVD rental service involves significant operational costs. Netflix must purchase, store, and maintain a vast inventory of DVDs, while also handling shipping logistics and customer support for damaged or lost discs. By exiting the DVD rental business, Netflix can redirect these resources into expanding and enhancing its streaming library and technology infrastructure, which aligns better with the changing media landscape.
4. Focus on Original Content
Netflix has been investing heavily in producing original content to differentiate itself from competitors in the streaming market. This strategy has paid off, with popular series like Stranger Things, The Crown, and Ozark drawing in millions of subscribers worldwide. By divesting from the DVD rental business, Netflix can concentrate more on creating compelling original content that keeps subscribers engaged and attracts new ones.
5. Global Expansion
Netflix’s long-term vision involves global expansion, and streaming services are more adaptable to international markets than DVD rentals. Licensing and distributing physical DVDs across different regions require significant effort, whereas streaming allows Netflix to reach a global audience with a single digital platform. By shedding the DVD business, Netflix can focus on expanding its streaming services into more countries and tailoring content to diverse markets.
6. Environmental Considerations
In an era when environmental concerns are at the forefront of public consciousness, the DVD rental model can be seen as wasteful. Manufacturing, shipping, and disposing of DVDs generate a significant carbon footprint. By discontinuing the DVD rental service, Netflix can position itself as a more environmentally responsible company, aligning with the values of eco-conscious consumers.
Shelley, hope that makes sense. Happy viewing!
Have a question about new TV technologies? Send it to The TV Answer Man at swann@tvanswerman.com Please include your first name and hometown in your message.
