How Netflix's DVD Business Fundamentally Changed Home Entertainment Before Paving the Way for Streaming

Netflix shipped over a billion DVDs by mail from 2007-2009, overwhelming USPS with 1.6 million returns daily. This redefined how people watched movies before streaming.
Netflix automated DVD processing with machines that opened returns, scanned discs, and prepared them to be mailed again. This replaced much manual labor.
Machine learning algorithms improved scanning accuracy, virtually eliminating customer complaints about unplayable discs.
DVD profits funded streaming content like House of Cards in the 2010s until streaming became profitable itself.
As DVD declined, Netflix closed redundant hubs and salvaged machines for parts. Final DVD shipments are occurring now before the business ends.

theverge.com

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1/23/2023

Netflix’s New Chapter

This article discusses the early battle between Netflix and Blockbuster and how Netflix emerged as the dominant player in the streaming industry. It highlights the challenges Netflix faced from Blockbuster's online service and how Netflix strategically waited for Blockbuster to collapse. The article also examines Netflix's current challenges, including competition from other streaming services and the need to produce compelling content at scale. It concludes by suggesting that Netflix's future success will depend on its ability to be creative and produce high-quality content.

1/23/2023

Netflix’s New Chapter

The main topic is Netflix's battle with Blockbuster and its current challenges in the streaming industry. 1. Netflix faced a serious challenge from Blockbuster in the mid-2000s, but ultimately outperformed and bankrupted the brick-and-mortar giant. 2. Netflix correctly predicted the growth of online rentals and the decline of video stores, leading to Blockbuster's downfall. 3. Netflix is now facing new challenges, including saturation and stiff competition from other streaming services. 4. Despite these challenges, Netflix has a strong advantage with its large user base and profitability compared to its competitors. 5. The future success of Netflix will depend on its ability to produce compelling content at scale and maintain its position as a leading streaming service.

8/27/2023

Netflix will allow customers to keep physical DVDs and get 10 more free before the company completely shuts down its rental service

Netflix will be shutting down its physical DVD rental service on September 29, allowing customers to keep any unreturned discs and offering the chance to receive up to 10 additional discs at no charge.

10/16/2023

Netflix to Drop Support for Older TVs and Devices Starting October 2023

Netflix is discontinuing support for older devices, prompting users to upgrade or get new devices to continue streaming the platform.

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Posted 9/25/2023, 2:00:00 PM

How Netflix's DVD Business Fundamentally Changed Home Entertainment Before Paving the Way for Streaming

Netflix shipped over a billion DVDs by mail from 2007-2009, overwhelming USPS with 1.6 million returns daily. This redefined how people watched movies before streaming.
Netflix automated DVD processing with machines that opened returns, scanned discs, and prepared them to be mailed again. This replaced much manual labor.
Machine learning algorithms improved scanning accuracy, virtually eliminating customer complaints about unplayable discs.
DVD profits funded streaming content like House of Cards in the 2010s until streaming became profitable itself.
As DVD declined, Netflix closed redundant hubs and salvaged machines for parts. Final DVD shipments are occurring now before the business ends.

theverge.com

Relevant topic timeline:

1/23/2023

Netflix’s New Chapter

1/23/2023

Netflix’s New Chapter

8/27/2023

Netflix will allow customers to keep physical DVDs and get 10 more free before the company completely shuts down its rental service

10/16/2023

Netflix to Drop Support for Older TVs and Devices Starting October 2023

Netflix is discontinuing support for older devices, prompting users to upgrade or get new devices to continue streaming the platform.