Netflix flinging out DVDs like frisbees as night comes for legacy business
- Reference: 1692796894
- News link: https://www.theregister.co.uk/2023/08/23/netflix_dvd_twilight/
- Source link:
It's all too easy to forget this is how the eminent movie and TV streaming biz arrived on the scene, though only in the US, as a harebrained scheme by two colleagues after their software company was acquired.
There are differing accounts of Netflix's founding. Executive chairman Reed Hastings once said it was inspired by a [1]$40 late fee for Apollo 13 from Blockbuster , yet co-founder and first CEO Marc Randolph claimed this was [2]"crap" to market the fledgling company. The canonical spark was the desire to be the [3]"Amazon.com of something" – and that something ended up being DVDs by virtue of their slim profile and durability for mail order.
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Incidentally, during hard times in the early days, Netflix asked Blockbuster to buy it for $50 million, which was [5]taken as a joke . Netflix now has a market capitalization of $183 billion and Blockbuster is a lifeless husk.
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What's surprising is how long the DVD portion of the business (a [8]0.5 percent portion ) has endured, though it's easy to see why CEO Ted Sarandos [9]said back in April that the service would be wound down on September 29.
In fact, Netflix places so little value on the segment that it doesn't want its last shipments back. Strange DVD subscriber people in the US received an email offering the chance for up to 10 extra discs rather than the usual maximum of three if they opted in before August 29.
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"After 25 years of movies in the mail, we're approaching the end of our final season," it read. "We really appreciate that you're sharing movie nights with us until the last day. Let's have some fun for our finale!"
[11]LG's $1,000 TV-in-a-briefcase is unlikely to travel much further than the garden
[12]Netflix offers up to $900,000 for AI product manager while actors strike for protection
[13]'Joan Is Awful' Black Mirror episode rebounds on Netflix
[14]No more free love: Netflix expands account sharing restrictions
After entering, the customer is told: "You might find up to 10 extra red envelopes in your mailbox after September 29th. You won't know if any are headed your way until they arrive. Keep an eye out and happy viewing!"
This was followed up by the DVD Netflix X (née Twitter) account [15]saying : "We are not charging for any unreturned discs after 9/29. Please enjoy your final shipments for as long as you like!"
Is it a sad end to what was once Netflix's entire business model? For this writer, who long ago moved to Blu-ray and doesn't even buy those anymore, it's a bizarre state of affairs that a small group of people have clung to the service. Increasing internet speeds have made physical formats for film and music essentially obsolete – taking some bricks-and-mortar retail chains with them – yet it is also easy to see why it could be a lifeline for avid film fans in remote areas where connections are spotty.
The shortcoming of Netflix as a streaming service, however, is that there is so rarely anything you actually want to watch on it, algorithms be damned. Tapping in the name of a specific film is usually met with titles that are vaguely in the same ballpark, but resolutely not what you were hoping for. This is because streaming rights are expensive and don't offer much of a return, so Netflix now leans far more toward producing "bingeable" original content it hopes can draw in new subscribers and keep them there.
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The irony is that Netflix's DVD hoard has far more and better films in stock than its mainstream incarnation ever will, and very soon it will be gone. ®
Get our [17]Tech Resources
[1] https://www.cnet.com/tech/services-and-software/dvd-service-delivers-online/
[2] https://www.cnet.com/tech/services-and-software/netflixed-author-talks-hastings-glory-hubris-white-lies-q-a/
[3] https://www.washingtonpost.com/opinions/five-myths-about-netflix/2014/02/21/787c7c8e-9a3f-11e3-b931-0204122c514b_story.html
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOYtJ7ePCC--odqg2utGjQAAA1Y&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://www.inc.com/minda-zetlin/netflix-blockbuster-meeting-marc-randolph-reed-hastings-john-antioco.html
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOYtJ7ePCC--odqg2utGjQAAA1Y&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOYtJ7ePCC--odqg2utGjQAAA1Y&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[8] https://www.statista.com/chart/29775/netflix-revenue/
[9] https://about.netflix.com/en/news/netflix-dvd-the-final-season
[10] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOYtJ7ePCC--odqg2utGjQAAA1Y&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[11] https://www.theregister.com/2023/08/18/lg_briefcase_tv/
[12] https://www.theregister.com/2023/07/26/netflix_ai_manager/
[13] https://www.theregister.com/2023/06/26/joan_black_mirror_terms/
[14] https://www.theregister.com/2023/02/09/netflix_sharing_restrictions/
[15] https://twitter.com/dvdnetflix/status/1693794419659653517
[16] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOYtJ7ePCC--odqg2utGjQAAA1Y&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[17] https://whitepapers.theregister.com/
Re: bizarre state of affairs
Why would anyone want Netflix over a DVD? Really?
Takes you longer to find something to watch on a streaming service than it does to pick out a DVD - and that's if you find it on the service. You might have to sign up to yet another streaming service just to see it in (sometimes) poorer quality.
Re: bizarre state of affairs
We just buy DVDs second hand for a £ or so. Rip HDD to watch on the big screen.
Only downside is that some older DVDs are at a lower quality.
Re: bizarre state of affairs
Ha yeah, I remember when DVDs started to become a thing, and the likes of Warner Bros would put out bare minimum on their DVDs in order to fill the shelves. I still have Passenger 57 - a DVD with just the movie (at "acceptable" quality), and a static menu, nothing else.
Re: bizarre state of affairs
We do the same thing. The only issue for us is that there isn't really a local place to buy them. We live in a fairly remote small town.
I buy used DVDs from Amazon (or eBay) sometimes, but everyone gets you with the $3.99 or $4.99 shipping. The actual media mail shipment costs them about $1.30, so sellers are making up with additional profit on the shipping. Box sets are a better deal when it comes to shipping.
We used the Netflix DVD by mail service until just recently. I won't pay for streaming, especially now with so much fragmentation. I refuse to subscribe to 4 or 5 different services.
...streaming rights are expensive and don't offer much of a return
What happened to the "long tail" theory? It costs virtually nothing to store content and the provider pays royalties to the content owner when movie is streamed by a customer.
I guess each content owner wants their own subscription model, which would be fine if it was a fraction of the price of e.g. Netflix, to reflect their limited content.
In a ridiculous related example, Amazon Prime wanted £2 to stream an episode of Firefly, so I bought the Collectors edition series on DVD for £3, watched them all, then gave the DVD to a friend to screw Amazon over again XD
Re: ...streaming rights are expensive and don't offer much of a return
IIRC they are running out of DVDs. Most of their DVD customers now are art film fans who want obscure criterion collection disks that are getting hard to get.
They other DVD customers are people that live in deeply rural areas with bad internet, and it's hard to profitably monetize people who watch Deliverance every night
One advantage with DVD's
Your films and shows don't magically disappear next time two rights holders have a public spat, or someone decides to junk our culture as a tax writeoff.
bizarre state of affairs
That a small group of people have clung to the service to have access to movies that aren't on streaming, or without having to go through a dozen services to find out who owns the rights to something this week.
To watch a movie in Blueray rather than in the revolutionary compressor blocky format.
To have directors commentary rather than unskipable ads on a service they are paying for.