Netflix’s shrinking DVD service faces uncertain future
SAN FRANCISCO — Originally cast in a starring role, Netflix’s original DVD-by-mail service has been reduced to a bit player — one that may eventually get killed off as the company focuses on its booming video streaming service.
Netflix’s fourth-quarter earnings report released Wednesday provided the latest glimpse at the DVD service’s descent into oblivion as the streaming service hogs the spotlight.
The DVD service shed 159,000 subscribers during the final three months of last year to end December with 4.1 million customers. That’s an 11-year low for a format that gave Netflix its initial shot at stardom, allowing it out-innovate and outmanoeuvr Blockbuster Video, then the king of home-video rentals.
Now, though, the DVD service operates mostly as an afterthought that caters to a shrinking audience of die-hards who prefer to watch movies and TV shows on discs instead of streaming or downloading them onto a mobile gadget.