6.7 Million Still Using Netflix’s DVD ServiceBy: Chris Crum - April 22, 2014
Netflix released its quarterly earnings report on Monday. It also shared a letter to shareholders talking about various elements of its business. One of those elements still brings in a substantial amount of money, but was barely discussed in the letter or the ensuing conference call (in fact, I could be wrong, but I don’t even remember it being brought up during the call).
Remember DVDs? It’s the format that launched Netflix into existence, and made it a household name. Here’s what little Netflix had to say about DVDs this time around:
Our DVD-by-mail business continues to delight 6.7 million members. As expected, contribution profit for the segment was $98 million in the quarter and we anticipate $92 million for Q2. The breadth of content choices available on DVD and Blu-ray is unrivaled.
That’s pretty much it, and it was at the very end of the letter, just before the summary, which said, “We are approaching 50 million global members, but that is far short of HBO’s 130 million. We are eager to close the gap.”
The letter to shareholders that accompanies the prior quarter’s earnings report introduced the DVD.Netflix.Com branding for envelopes and the DVD web pages.
As far as we know, Netflix isn’t planning on launching those DVD delivery drones anytime soon.
CEO Reed Hastings did, however, talk about the company’s relationship with Amazon.
Netflix has 35.67 million streaming customers in the U.S. It has 12.68 million internationally.
Image via YouTube