Netflix shutters its DVD rental business, marking the end of the red envelope era

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Netflix will send out its last red envelope on Friday, marking an end to 25 years of mailing DVDs to members.

The company announced earlier this year it is shutting down its DVD-by-mail service, 16 years after it gradually shifted its focus to streaming content online. Netflix will continue to accept returns of customers' remaining DVDs until Oct. 27.

"I was basically watching them as soon as I got them, and then returning the discs as quickly as possible to get as many as I could," said McEvoy, who has been using Netflix's DVD-by-mail service since 2001, just three years after it launched. There are other factors, too. Michael Inouye, an analyst at ABI Research, said some consumers may still not have access to reliable or fast enough broadband connections, or simply prefer physical media to digital, much in the way that some audio enthusiasts still purchase and collect CDs and records.For Netflix, however, the offering has made less sense in recent years.

 

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