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Netflix's DVD-by-mail service to finally end after 25 years

Stellar Snippets

The Netflix DVD-by-mail service revolutionized video renting, putting blockbuster video stores out of business when they began in 1998.

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The five remaining distribution centers in California, Texas, Georgia, and New Jersey will be mailing out the final envelopes on Friday.

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The less than one million Netflix DVD subscribers can keep these final deliveries, with some loyal ones getting up to 10 discs as a going-away present.

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Reports state that the DVD service had over 20 million subscribers at its peak, with more than 100,000 titles to choose from.

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The DVD service generated only $146 million in revenue last year, leading to its inevitable closure. 

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Marc Randolph, Netflix’s CEO,  tested out mailing DVDs by mailing Patsy Cline’s greatest hits in a pink envelope to cofounder Reed Hastings, paying just 32 cents for the stamp.

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At one point, the novel idea of a DVD rental subscription was so popular that Netflix was the U.S. Postal Service's fifth largest customer.

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Netflix shipped its first DVD "Beetlejuice" in April 1998. CEO Marc Randolph calls it "miraculous" that this day "didn't come 15 years ago."

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