Netflix is saying goodbye to physical DVDs 25 years after its mail service irrevocably disrupted the movie rental industry.
in a series of ads On Tuesday, Netflix officials thanked users who have supported the program that has led to the company’s massive success today and at one point had more than 20 million subscribers.
“Those iconic red envelopes changed the way people watch shows and movies at home – and paved the way for the transition to streaming,” Netflix’s statement reads.
The decision didn’t go over well on social media, with many users calling for the company to abandon its roots.
‘Garbage decision’. I still get DVDs. Much better than the Netflix streaming selections. Commit to superior service: @criterionchannl, one person wrote.
After 25 years, Netflix is saying goodbye to the feature that made it famous: the mail-in DVD rental service that once had 20 million subscribers receiving copies of TV shows and movies.
“These iconic red envelopes changed the way people watch shows and movies at home – and paved the way for the transition to streaming,” Netflix said in a statement.
In the statement shared on Twitter, the company acknowledged its “incredible 25-year run” as well as always pursuing the company’s interests.
“Our goal has always been to provide the best service to our members, but as business continues to shrink, this will become increasingly difficult,” the book says.
The company will ship the finished discs to customers on September 29th.
The statement concluded, “We feel proud that we have been able to share movie nights with our DVD members for so long, we are very proud of what our employees have achieved and excited to continue to please entertainment fans for many more decades to come.”
Twitter users were quick to criticize the decision, as well as asking more questions about the logistics of the severance plan.
‘NOOOOOOOOO! I have 221 movies in my queue and maybe 10 of them are available via streaming. What should I do?’ Another user’s request.
“So if we have a couple outside right now, should we bother to bring them back?” one person joked.
“The end of an era,” one person wrote.
In the statement shared on Twitter, the company acknowledged its “incredible 25-year run” as well as always pursuing the company’s interests. Pictured: Netflix founder Reed Hastings
The statement concluded, “We feel proud that we have been able to share movie nights with our DVD members for so long, we are very proud of what our employees have achieved and excited to continue to please entertainment fans for many more decades to come,” the statement concludes.
Alongside the DVD announcement, Netflix shared its earnings report and new subscriber numbers.
Netflix added 1.5 million new subscribers in the first quarter, bringing the total number of primary subscribers to 232.5 million worldwide.
And while the number was high, it was down significantly from Q4’s 7.7 million new subscribers. First-quarter numbers also fell short of Wall Street’s expectations.
Sarandos said the results were “a normal quarter for us.”
According to an analyst at Insider Intelligence, the numbers may reflect future problems for the company.
Paul Verna told the Wall Street Journal that the findings “leave open questions about the company’s ability to reinvigorate its business with an ad layer and paid password-sharing program.”
The company’s revenue forecast for the second quarter is also lower than expected.
“These are troubling signs of a company that, despite being a market leader, is struggling to regain its magic,” Verna said.
The “worrying signs” come as Netflix also grapples with news about the Writers Guild of America The strike vote was authorized If no new agreement is reached by May 1.
In addition, the streaming device is dealing with increased competition from other platforms.
Netflix Co-CEO Ted Sarandos (left) and Co-CEO Greg Peters (right)
Company officials on Tuesday also commented on the password-sharing campaign, which was recently enforced in Portugal, Spain, New Zealand and Canada.
Netflix said it plans to expand the campaign to the United States this quarter.
Officials said the plan worked and profits were strong.
