Netflix is ending the mail-delivered DVD movie rental business after 25 years.

The giant Subscription Video on Demand (SVoD) service posted on Twitter and its DVD rental site Tuesday that “on September 29th, 2023, we will send out the last red envelope.”

The company’s decision to make this the final year for disc rentals comes after years of steadily declining revenue.

Prior to pioneering the video streaming business, Netflix got its start renting physical movie discs — at the time DVDs — by mail. It has continued offering that service for physical media fans even after the service built the world’s largest SVOD streaming operation in 2008.

Netflix reported disc rental revenue declined 50% in 2022 to $100 million from $200 million the prior year. DVD rental revenue amounted to $32 million in the first quarter, ended March 31.

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“Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” Netflix posted. “Making 2023 our final season allows us to maintain our quality of service through the last day and go out on a high note.”

For physical disc fans, the move leaves Redbox as the largest remaining disc rental option in the United States.

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By Greg Tarr

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