EPISODE 76

Netflix Makes Two Announcements

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Summary

For years, mailing DVDs to subscribers was Netflix’s main business. However, it’s DVD business is still going. However, the company recently announced the end of its DVD-rental-by-mail service, along with another announcement regarding the rollout of its password sharing crackdown.

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Netflix is known for streaming video, but at one time, it rented DVDs through the mail. That portion of Netflix’s business has continued to live on. However, last week, the streaming giant made an announcement about the future of DVD by mail.

For Personal Tech Media, this is Two Minute Tech. I’m Jim Herman.

The end of Netflix’s DVD by mail service is just one of the two announcements the company made last week. The other announcement provided additional details on the rollout of its password sharing crackdown.

In February, Netflix launched a plan requiring subscribers to identify a primary residence. And streaming through certain devices, such as computers and smart TVs, would only be available at that residence. Subscribers would be able to continue streaming on mobile devices from anywhere, and they would have the option to add additional locations for an extra fee.

Netflix’s recent letter to shareholders says the plan will roll out more broadly in the second quarter. The company said that while they anticipate an initial backlash of cancellations, they have ultimately seen revenue grow as those who were previously borrowing logins either subscribed or were added as extra paid members.

Meanwhile, on the DVD front, Netflix says it will mail its final disc by September 29th, which gives you just over five months to organize that nostalgic DVD or Blu-ray movie night. However, if you want to subscribe one final time, don’t go to Netflix.com. To subscribe to the service or manage your account, you’ll need to visit DVD.com instead.

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