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Netflix’s DVD Business Still Thriving, And Red box Is Hoping To Keep Pace

  • By Walter Baker
  • Jul-22-2018
  • DVD, Marketing, Service, Tips
  • Comments Off on Netflix’s DVD Business Still Thriving, And Red box Is Hoping To Keep Pace

When people think of Netflix, video streaming is the thought that comes to mind. One of the biggest drivers of the shift to online streaming, with VHS to DVD in Perth businesses and the like taking a back seat to show streaming. However, Netflix also has a DVD rental service, available in major countries across the world. And it’s still making a killing, according to a report from the CNBC, with profits of $56 million on $99 million in revenues.

Netflix’s DVD rental business isn’t exactly hot topic, specially since the core business, the streaming service, doesn’t really speak much about it since its split back in 2011. However, any VHS to DVD in Perth and across the world can attest to, a lot of people still have a DVD player in their living rooms, in one form or another,  and this has kept this Blockbuster cousin service running and, more importantly, profitable.

The Netflix DVD business hasn’t really seen exponential growth in the age of streaming, actually having gone down from its zenith, when it had 50 fulfilment centres. The remaining 17 centres are still operational and successful enough that it hammered the metaphorical nail in Blockbuster’s coffin.

There are also two major threats to it, competitor Redbox, and the increasing obsolescence of DVD technology. The former still requires people to leave their homes to head for their stores or affiliates like 7-11 and Walmart. That and the fact that Netflix DVD has over 100,000 titles available, more than Redbox and far more than what their streaming service has at 5,600 titles. Redbox is working to keep up, though, with its most recent development; 4K Ultra HD Blu-Ray rentals, available in select markets.

The amazing thing about all of this is, in spite of the obsolescence and stigma attached to DVD players, the Netflix DVD business continues to thrive, and people are still very much aware of the fact. DVD players were the replacement to VHS tapes, but have, themselves, been renderedobsolete thanks to the rapid advancements in entertainment technology. It might not be long until they finally take their last breath thanks to streaming technology, but Netflix is wholly committed to making as much profit from them as it can.

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