Netflix, the popular streaming service, has decided to end its 25-year-old DVD mailing service, marking the end of an era.
According to co-chief executive Ted Sarandos, while the service was instrumental in paving the way for streaming, the decision to wind down was made because it had become increasingly difficult to provide the best service for subscribers as the business continues to shrink.
The company’s shift to streaming has been eating away at its DVD-by-post business, which accounted for only $126 million of Netflix’s $31.6 billion in revenues last year. Despite posting a slightly lower revenue of $8.18 billion than analysts had forecast for the first quarter of the year, Netflix added 1.75 million subscribers and now has a total of 232.5 million customers.
Facing stiff competition from rivals such as Apple, Disney, and Hulu, the company has also announced new ad-supported tiers and is cracking down on password-sharing, although the broader rollout of this measure has been delayed until the end of June.
By: Raja M Azeem