The end of an era: Netflix closes its DVD rental service

Netflix is shutting down its DVD-by-mail service after 25 years, marking the end of the red envelope era. The company will continue to accept returns of customers' remaining DVDs until October 27. Some longtime customers expressed value in the DVD option for its selection and added perks, such as special features and audio commentaries. However, for Netflix, the DVD business has become less viable as streaming dominates the market. Shutting down the DVD business will allow Netflix to focus resources on expanding into new markets. The cost of operating the DVD business and the decline in revenue also contributed to the decision. Netflix has no plans to sell the DVD business and will recycle the majority of its DVDs.