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After 25 years of service with an idea that put Blockbuster video stores out of business, Netflix will be online only as the vast majority of its customers find it preferable to stream instead of insert. The company’s profitability, to the unending chagrin of Blockbuster executives who could have bought the company for a relative song once upon a time, has transformed it into an entertainment giant.
The Silicon Valley founders of the company factored in planned obsolescence, realizing the vast majority of people would take to getting their flicks over the net rather than wait for the mailman. That time has come, and the remaining million mail customers will have to get accustomed to another format for their video fix.
"It's sad," DVD subscriber Amanda Konkle said as she waited for the arrival of her final disc, "The Nightcomers," a British horror film featuring Marlon Brando. "It makes me feel nostalgic. Getting these DVDs has been part of my routine for decades." The mail service was attractive to many since they could get obscure films, such as the 1971 Brando flick, that aren’t readily available online.
The move was always part of the Netflix strategy as it now boasts 238 million worldwide streaming subscribers and generated $31.5 billion in revenue last year.
"Those iconic red envelopes changed the way people watched shows and movies at home — and they paved the way for the shift to streaming," Netflix co-CEO Ted Sarandos said.
"It is very bittersweet," said Marc Randolph, Netflix's CEO, when the company shipped its first DVD, "Beetlejuice," back in 1998. "We knew this day was coming, but the miraculous thing is that it didn't come 15 years ago."