By Abby Wallace
Netflix is ending its postal DVD service after 25 years in a bid to boost profits and subscribers, it announced on Tuesday.
In a letter to shareholders, the company described the DVD service as “the booster rocket that got streaming to a leading position,” but added that the business was shrinking and would wind down in September.
The news came as the streaming giant posted its quarterly results, recording revenue growth of 4 per cent year-on-year to $8.16bn (£6.54bn), broadly in line with Wall Street expectations. The company estimated revenues would reach $8.24bn (£6.61bn) in the next quarter, below analyst forecasts.
Net income also fell from $1.6bn (£1.2bn) to $1.3bn (£1.04bn).
The streaming service, which is faced with competition from rivals including Disney+, Hulu and Amazon, also announced that it would push back plans to roll out paid password sharing broadly to the next quarter.
The move was announced last year to clamp down on account sharing and boost subscribers.
“While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a better outcome for both our members and our business,” the company added in the letter.
Netflix added 1.75 million subscribers in the most recent quarter — down from the 7.66 million added in the last quarter — and reported a five per cent rise in membership to 232.5 million.
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