Netflix, the streaming giant, has announced it will officially cease its DVD rental service, a business that played a pivotal role in establishing the company as a household name. The final red envelopes, a hallmark of the service, are scheduled to be dispatched on September 29, 2023.
Co-CEO Ted Sarandos addressed the decision in a blog post on Tuesday, explaining the rationale behind ending the 25-year-old service. “Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” Sarandos stated. He added that “Making 2023 our Final Season allows us to maintain our quality of service through the last day and go out on a high note.”
The company also took to Twitter on Tuesday to confirm the impending closure, tweeting, “On September 29th, 2023, we will send out the last red envelope. It has been a true pleasure and honor to deliver movie nights to our wonderful members for 25 years.”
The announcement coincided with Netflix reporting a miss for its second-quarter earnings after the market closed on Tuesday, leading to a decline in shares by approximately 6%.
