With the technological innovations, we have come from VHS to DVD to streaming services such as Netflix. Many do not know that there are still almost 3 million subscribers who are waiting for their monthly signature red envelope from Netflix which contains a DVD. The company is now a huge name in the dot com era but for the first six months of the year, it still recorded 2.999 million subscribers of DVD in the domestic market. The mail-based service is not open to global customers.
Despite the fact that the number of subscribers have already decreased to less than 3 million, this is still considered a milestone for Netflix. The last time that the company reached this less than amount of subscribers was over 13 years ago in the first three months of 2005. The physical media might not be as enticing as before but Netflix believes that they will not phase out the service anytime soon. Their reasoning is that they still get the profit they desire and it still services the population of subscribers that are not still sold with their streaming service.
In 2010, the number of DVD subscribers under Netflix has reached a whooping 20 million but before the next year ends, the subscribers for their DVDs along with Blu-ray discs has dwindled down significantly to 11.2 million accounts.
Reed Hastings, the CEO of Netflix, was asked in an interview at the beginning of 2012 if the subscribers of their disc services are expected to bounce back on that same year but his answer was straightforward. According to him, the company expects that their DVD subscribers will continue to decline in a steady manner at every quarter of the year and the pattern will remain that way.
It turns out that he was not wrong with that assumption though it is only to be expected as VHS to DVD was also something that happened because of times changing. Despite the dip in subscribers, the company’s stock remains strong and its streaming service is now the face of the future. As of writing, there are over 130 million accounts enrolled in their streaming service.