Netflix Can't Keep Mailing Out DVDs Forever
You never forget where you came from, but it's time for Netflix (NASDAQ: NFLX) to consider cutting ties with the platform that put it on the map. Renting DVDs by mail? In 2020? You can't be serious.
The market darling is booming on the merits of its now ubiquitous streaming service. It has 182.9 million paying digital accounts worldwide, and it expects to top 190 million by the end of next month. Compare that to the 2.1 million (and shrinking) subscribers still receiving physical discs, and it doesn't make sense to keep its original platform operating.
A decade ago, Netflix was still seen largely as a company offering DVD and Blu-ray discs in its signature red mailers. Streaming was a nascent platform with a limited catalog that Netflix included with its most popular DVD plan at no additional cost. The business of renting discs by mail peaked at roughly 20 million subscribers in 2010, but it's been shrinking ever since. Here we are, a decade later, and the number of members still receiving DVDs has plummeted by nearly 90%. How much longer can Netflix keep its diminishing legacy business going? It's probably not as long as you think.
Source Fool.com
