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2.7 Million Americans Still Get Netflix DVDs in the Mail (cnn.com)

Remember when Netflix used to be a DVD-by-mail company? Well, for 2.7 million subscribers in the US, it still is. From a report: The familiar red envelopes have been arriving in customers' mailboxes since 1998 and helped earn the company a healthy $212 million profit last year. Why are so many people still using this old-school service in the age of streaming? There are a number of reasons. Streaming Netflix video requires a lot of bandwidth -- so much so that Netflix consumes 15% of all US internet bandwidth, according to a 2018 industry report. But many rural areas of the country remain without broadband access. The Federal Communications Commission estimates 24 million Americans fall on the wrong side of this digital divide. The US Postal Service, however, can reach every ZIP code with those red envelopes. One such customer is Dana Palmateer, who lives in the Black Hills of South Dakota.

"Streaming movies was a no-go, so I just went with the disc service that Netflix offers," she says. "As all of us are doing it in these parts." But Netflix also has plenty of DVD customers in urban areas who prefer the service for its convenience and selection of movies, spokeswoman Annie Jung says. "People assume that our customers must either be super seniors or folks that live in the boonies with no internet access," she says. "Actually, our biggest hot spots are the coasts, like the Bay Area and New York."
In 2017, the number of people who subscribed to Netflix's DVD subscription was about 4 million.

17 of 123 comments (clear)

  1. I still get them by b0bby · · Score: 4, Informative

    There are a lot of obscure movies and documentaries which are still not easily available streaming. The one at a time plan is fine for me, and I can get any of the oddball stuff reasonably quickly, which is better than not at all.

    1. Re:I still get them by rolias · · Score: 5, Informative

      Me too. Not even obscure stuff. Other production are so stingy with letting Netflix carry their content, and want me to subscribe to their own streaming services. I'd just as soon wait for it to hit Bluray and get it from Netflix. Their disc library is much bigger than their streaming library.

    2. Re:I still get them by Anonymous Coward · · Score: 3, Insightful

      It's not even the oddball stuff. If you want a current release movie you have a small chance you can stream it on Netflix, otherwise you're paying for a rental somewhere else. A movie a week streaming rentals vs DVD rentals is about a wash when it comes to cost so a DVD plan is a good compliment to streaming.

    3. Re:I still get them by bob4u2c · · Score: 5, Informative

      Came here to say the same thing. The DVD catalog is way bigger than the streaming catalog.

      I still stream a bunch of recent stuff, but for classic shows and movies DVD is still king.

    4. Re:I still get them by b0bby · · Score: 2

      Yeah, I have Netflix and Prime (mostly for shipping) and I'm not going to subscribe to any other services. There's way more content available than I have time to watch anyway. The kids sometimes watch some reality nonsense on their friend's Hulu account, but I'm not going to actively support that!

    5. Re:I still get them by edi_guy · · Score: 2

      Same here. My limit is two streaming services and the DVD option fills in missing parts between those two. Even if it requires a little more patience.

  2. I do both forms of Netflix by hgriggs · · Score: 2

    I have a streaming Netflix account, and I get the two DVDs at a time disc-in-the-mail service. The streaming is good for TV series and specialty Netflix material, but the range of films available for streaming is tiny compared to what's available on disc. Foreign films, documentaries, obscure films, so much stuff not available to stream. Probably licensing issues. So I do both.

  3. Quality and selection is unmatched by lexman098 · · Score: 4, Interesting

    I have a gigabit connection, but I prefer blu-rays for media. Streaming doesn't offer nearly the quality or selection. It's cheaper than signing up for a bunch of different streaming services too, especially if you're willing to wait for the TV stuff.

  4. Netflix DVDs or bust. by BenFenner · · Score: 2

    I have 60-100 movies and TV shows in my DVD queue at any given time. Netflix tells me which are streaming (to try to get me to sign up for their streaming service). There are easily less than 1% on my list available streaming at any given time. Their streaming catalog is almost useless to me.

    I pay for 3 discs at a time, and I'd pay for 4 if they'd let me.

  5. I still get Netflix DVDs by QuietLagoon · · Score: 4, Informative

    Though Netflix's service has deteriorated, and the DVD inventory is getting pretty poor. For example, only one or two seasons of a 8-season TV show. Even worse, a show that was most popular in its time, Cheers, is not even available on DVD from Netflix. Cheers!?!?!? Delivery time is up to two days in each direction now because distribution centers have been shut down. To me it looks as if Netflix is just soaking the DVD customers for all they can.

    1. Re:I still get Netflix DVDs by tlhIngan · · Score: 2

      Though Netflix's service has deteriorated, and the DVD inventory is getting pretty poor. For example, only one or two seasons of a 8-season TV show. Even worse, a show that was most popular in its time, Cheers, is not even available on DVD from Netflix. Cheers!?!?!? Delivery time is up to two days in each direction now because distribution centers have been shut down. To me it looks as if Netflix is just soaking the DVD customers for all they can.

      Well, you have to admit that Netflix is simply seeing what's happening - physical media sales are down, disc sales are down, and the trend is not getting any better. A lot of people have moved onto streaming, and the 2.7M physical subscribers have too, cutting down their plans to the minimum.

      Couple this with many DVDs being MOD (manufactured on demand) because the print runs are too small, and Netflix simply can't get those (MODs are basically a burned DVD). Heck, even modern shows often only now get a DVD release, when they used to get DVD and Blu-Ray, so you can't even get it in high-def anymore.

      And nevermind when a disc gets damaged - back in the day it would've been easy to go to the store and pick up a replacement, but with current trends, that's not possible - once a disc is damaged, it's gone. Netflix simply can't get another copy of it as they've been sold out for years.

      There is no where Netflix can go for physical media than down - discs just aren't selling, and what little discs are available, Netflix can only buy a few copies - too many and they'll never be rented, too few and damage would prematurely remove the title from circulation.

  6. Its all about available content by diagonti · · Score: 2

    We have both a DVD and streaming subscription. There is a lot of content only available on DVD. We've basically watched the streaming content of interest, but have a long DVD queue we are slowing going through 1 disc at a time.

  7. Selection, Selection, Selection by stevegee58 · · Score: 2

    I have eclectic taste in movies and they're almost never available streaming. I always have a NFLX movie at home ready to watch and the titles will almost certainly never be available streaming.

  8. Netflix DVD subscribers might increase by Dan667 · · Score: 2

    Now that idiots at all the companies are all trying to make an exclusive streaming service that I'll never buy DVDs allow me to watch that content.

  9. Re:I still rent from Family Video. by bev_tech_rob · · Score: 2

    Who said she had a problem with that? Grow up.

    --
    You're messin' with my Zen Thing, man.....
  10. Re:Better catalog depth by jeff4747 · · Score: 5, Informative

    The non-streaming catalog is (was) greater and does not disappear due to arbitrary license expirations.

    Still is, and first sale doctrine means studios can't yank their titles from the mail version.

  11. Microwave tower by mpercy · · Score: 3, Informative

    When my wife persuaded me to purchase a "farm" at the end of a dirt road off of another dirt road off of a two-lane paved road 11 miles outside a 1-stop-light town, one of the things we knew was going to be a problem was internet. Fortunately, we found a local provider who would raise a small microwave tower on a part of the property (about the size of a front-yard flagpole, not a huge thing) and if we would pay for the electric hookup and monthly electric (about $15/mo) they'd let us have free internet. The tower is line-of-sight to a water tower in town, where the main transmitters are located and our tower provides local access to our house and a few neighbors by small transceivers on our houses. I'm pretty sure I don't want to start a streaming video business from the house, but we can watch Netflix, Prime, ESPN 3 with no problems so that's a win. The alternative was Hughesnet or one of their competitors.