Netflix just released its earnings report for Q4, and DVDs are still contributing what the company considers “roughly stable” profit at $110 million for the quarter.
The company’s DVD business is the foundation on which the company is based, but is rarely discussed these days as the streaming side of things has taken over.
Netflix still has 6.9 million DVD members it says “value the tremendous selection” it offers. There’s no question that the selection is much greater than its more popular streaming service offers. For many members, the DVD service supplements the streaming service by providing the content not available via the latter. People seem to forget sometimes that the streaming service was initially offered as a free bonus for subscribers.
The DVD service will be getting a little rebranding. Don’t expect another Qwikster debacle or anything, but they’re doing a little to separate the two services again. In a letter to shareholders, CEO Reed Hastings and CFO David Wells write:
In the coming months, we’ll begin using dvd.netflix.com on our envelopes and on the DVD web pages. The dvd.netflix.com logo will feature our iconic envelope in a nod to our DVD-by-mail heritage, representing the huge selection that DVD offers; nearly every movie ever made.
It also offers all that HBO content it can’t give its subscribers on the streaming service too, by the way. Granted, it tends to be about a year after it first airs.
Netflix expects profits from DVD to be down to $98 million in the first quarter.
Image via Netflix