Netflix Is Shuttering a Beloved, Old-School Service — And Giving Customers Something for Free The company has been mailing DVDs to customers for 25 years. But not anymore.

By Emily Rella

It's the end of an era at Netflix as the streaming giant announced that it's shuttering the service that put it on the map — renting DVDs via mail.

For the last 25 years, Netflix subscribers have had the option of renting DVDs and mailing the discs back, a model that was revolutionary when the company launched in 1998.

But now, Netflix is telling subscribers who haven't yet returned rented films to simply keep them—without any late fee or replacement charges.

Related: All the Details of the Netflix Password-Sharing Update Nobody Wanted

"We are not charging for any unreturned discs after 9/29," the company wrote on the X account associated with its DVD mailing plan, @DVDNetflix. "Please enjoy your final shipments for as long as you like!"

The decision to sunset the DVD service was first announced in April during an earnings report for Q1 2023.

"Our goal has always been to provide the best service for our members but as the DVD business continues to shrink that's going to become increasingly hard. So we want to go out on a high, and will be shipping our final DVDs on September 29, 2023," the company said. "DVD paved the way for streaming, ensuring that so much of what we started will continue long into the future."

Subscribers have until October 27 to return discs to the company, and the last round of DVD shipments will go out to customers on September 29.

Related: This Streaming Service Beat Netflix as the No. 1 One Market Leader in the U.S.

The company also noted that customers will receive their final bill at the end of August, and if they also have a membership plan with Netflix's streaming service, it will not be impacted.

In May, Netflix decided to crack down on password-sharing with people outside of one household, a move that angered many subscribers and critics but may have paid off big time for the company.

Last month, Netflix announced it gained almost six million new paid subscribers in Q2 of 2023.

"Most of our revenue growth this year is from growth in volume from new paid memberships and that's largely driven by our paid sharing rollout," Netflix's chief financial officer, Spencer Neumann, said in an earnings call.

Netflix was up an impressive 85.4% year-over-year as of Monday afternoon.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Editor's Pick

Related Topics

Franchise

Free Webinar | November 8: Unlocking Financial Freedom: The Side-Hustle Franchise Path

Your aspirations to have an additional source of income can become a reality as a side-hustle business owner — and this free webinar will show you exactly how to do it. Register now →

Business Plans

Unlocking Growth — The Power of KPIs in Driving Franchise Brand Success

Why it's critical to track your franchise goals and objectives.

Business Models

Pros or Pretenders? How to Choose a Reliable PR Agency in 6 Steps

With a multitude of names vying for clients' attention, how can you be certain that you're selecting a dependable PR contractor?

Business News

These Great-Grandparents Booked 51 Back-to-Back Cruises Because It's 'Cheaper Than a Retirement Home'

Retirees Marty and Jess Ansen hopped on a cruise ship nearly two years ago and never left.

Business Culture

3 Valuable Business Lessons from Harvard's Unabomber College Reunion Controversy

In 2012, Harvard mailed out a questionnaire to its alumni. One of their alum, Theodore Kaczynski (The Unabomber), mailed back a response from prison... and Harvard published it, hurting their reputation. Here are three business risk mitigation lessons to learn from the debacle.