The company said its DVD rental business had been shrinking and it will not be able to continue to offer quality service. Netflix will ship the last discs on Sept. 29.
Netflix co-founder Marc Randolph described in his autobiography how he and co-founder Reed Hastings had flirted with the idea of challenging Blockbuster Video with mail-order VHS cassettes, but it would have cost too much. They instead landed on a more cost-effective proposition: DVDs sold and rented online.
"Betting on DVDs was a risk," Randolph wrote in his book,"That Will Never Work: The Birth of Netflix and the Amazing Life of an Idea." He added:"But it might also be our way to finally crack that category."
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