Netflix discontinues DVD mailing to subscribers after 25 years.

By September’s end, the streaming company will cease DVD-by-mail service.

Netflix, under the leadership of co-CEO Ted Sarandos, has revealed its decision to bid farewell to the iconic red envelopes that have long been associated with mailing DVDs to subscribers. Sarandos acknowledged the significance of DVD mailing in the company’s transition to streaming, but after an impressive 25-year run, Netflix has made the difficult choice to discontinue this service by the end of September.

Sarandos emphasized that as the business contracts, maintaining optimal service for members will become increasingly challenging. Netflix originally emerged as an innovative alternative to traditional video rental stores, offering customers the convenience of renting DVDs delivered to their homes by mail. The inaugural DVD dispatched by the company to a customer was Tim Burton’s 1988 film,

The success of the business strategy had a significant impact, leading to challenges for Blockbuster, the largest chain of video rental stores, and its rivals.

Netflix’s decision to discontinue its DVD-by-mail service aligns with the release of its first-quarter results, which presented a blend of positive and negative developments. While the company’s revenues for the quarter amounted to $8.18 billion, slightly below analysts’ projections, it successfully attracted 1.75 million new subscribers, expanding its total customer base to 232.5 million.

In the previous year, Netflix disclosed its first subscriber decline in a decade, leading to a reduction in the company’s stock value. Faced with intense competition from rivals such as Apple, Disney, and Hulu, Netflix is rolling out new ad-supported subscription plans and taking measures to curb password-sharing, with the initiative being tested in Chile, Costa Rica, and Peru.

Nevertheless, on Tuesday, the company announced a delay in the broader adoption of its password-sharing restrictions, originally slated for late Q1. Instead, it plans to implement the rules more extensively by the conclusion of June.