End of an Era: Netflix shutting down DVD mail service

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Wow, has it been 25 years since Netflix launched their DVD by mail service? To me, it seems longer. 

After putting Blockbuster, Family Video, and your local mom & pop DVD stores out of business, Netflix is taking an axe to what made the company successful in their early days: the DVD by mail business.

Netflix got its start in 1997 as a DVD mail rental business. The concept was revolutionary because it meant you no longer had to drive to a video store and spend time walking up and down aisles looking for something to rent and then getting pissed off it wasn't available.

The concept of renting DVDs by mail took a while for consumers to warm up to. Netflix had a tough go at it in the beginning - so much so they offered to sell themselves to Blockbuster. But Blockbuster execs said, "Nah- we don't need you loser - we're king of the rental business". This decision would later be regretted by Blockbuster and go down in the annals of business as one of the biggest missed opportunities by a company.  Netflix ended up having the last laugh as Blockbuster went out of business. 

Anyway, Netflix continued to promote the DVD rental by mail and eventually it took off like gangbusters when consumers realized  the convenience of having a DVD movie arrive by mail - instead of dragging your ass to a store to rent one.

Netflix's DVD by mail service began to decline when the company introduced digital streaming service in 2007. Over the years, the decline of rental and purchase of DVDs has put them on the endangered list. Nowadays, the only time I see DVDs for sale are at used book stores, the occasional bargain bin at big box, or at a garage sale. I seldom see a Redbox rental kiosk any more. I still have my extensive DVD collection. It's my safeguard in case the internet goes out and my dog and I are stuck staring at each other.

On September 29, Netflix will shutter their DVD mail service, ending an era. To mark the occasion, the company is offering 10 free DVDs to their mail service subscribers. This is a genius idea because it's an easy way to clean out their closets of DVDs instead of sending them to the landfill.

Photo: Investors Business Daily

 

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