Should Netflix Get Rid of its DVD Rental Service?

When Netflix launched its DVD rental service in 1999, DVDs were still the main source of movie-viewing in the world, and thanks to the convenience factor, it didn’t take much time at all before a countless number of homes in the US had red envelopes hit their mailboxes. Fast-forward to today, and it’s not too hard to see that a lot has changed. Digital streaming is king, and so is HD content.

The service that Netflix started out with was simple. People could order a DVD movie to rent, and it would be mailed out to them. Once the movie was viewed, the subscriber sent it back with a pre-paid envelope and the cycle repeated. Today, that service is still very popular, but despite that, it’s one that Netflix is anxious to rid out, and soon.

The reasons are obvious. Mailing out DVDs is not inexpensive, and it cuts into the company’s total revenue. At the same time, digital streaming is far more cost-effective, and at the end of the day, both movie studios and Netflix stand to retain more cash in their collective wallets. But, should the company consider ridding its DVD service, when it’s still in such demand?

A couple of days ago, it became clear that Netflix would be angering many if it did such a thing. In a quick 100-word blog post, it was mentioned that the “Add to DVD Queue” option was being removed from streaming devices, and that immediately caused a firestorm of customer complaints… thousands of them.

Netflix itself hasn’t said that it’d be phasing out DVD rentals completely, but its actions seem to allude to it being an obvious goal. It’s more cost-effective for the company, and not to mention a lot easier to deal with. Instead of millions of movies being sent out a month, it’d have to worry about a mass of servers. One seems a lot easier than the other to manage.

What do you guys think? If Netflix discontinued its DVD rental service, would you rid your subscription? What if the DVDs were able to be streamed in full, so that it’d act like a real DVD? Do you still use the DVD rental service?

In a seemingly innocent 109-word blog post, Netflix director of product management Jamie Odell announced, “We’re removing the ‘Add to DVD Queue’ option from streaming devices,” suggesting that it was being done so that the company “can concentrate on offering you the titles that are available to watch instantly.” Granted, the Netflix website still allows DVD queue updating, but this post, dropped on the morning of Martin Luther King, Jr. Day, created an immediate firestorm of comments — most of them very, very angry.