Netflix Turned Down Offer To Sell Off DVD Rental, So What's Happening To All Of Those Movies?
It’s the end of an era, or at least it will be in September when Netflix, the company that launched itself as a by-mail DVD rental service, closes that business for good. Netflix announced that physical DVD rentals will cease in September. While not nearly as many people used the service these days, those who do would almost certainly like to continue it. Some Netflix DVD fans are quite upset it's going away, but it appears that won’t happen as Netflix has been offered the chance to sell that segment of the company, and they’re not interested.
Bill Rouhana, the CEO of Chicken Soup for the Soul Entertainment, owner of DVD rental company Redbox, recently told THR that he had reached out to Netflix on multiple occasions in the last few years to inquire about purchasing the physical rental side of the company, but was turned down each time. He still very much would like to buy it, and hopes that Netlfix might consider selling the division rather than simply closing it, but sources tell THR there is no interest in selling it off.
If Netflix did sell the company, it would at least answer what has to the biggest question hanging over shutting down the DVD business rental business. What do you do with all those discs? At this point, nobody seems to know what’s going to happen to all the DVDs that have been traveling through the mail for the last couple of decades. Will they be available for users to purchase? Will they go in a landfill next to all the old Atari video games?
Even if Netflix isn’t interested in selling its rental service infrastructure, if it willing to sell the discs, some company could swoop in and potentially buy them, and if they were in a place to put together their own mailing system, could try to launch a replacement option.
Selling them off might make sense but one wonders how many people would be interested in buying, even at a steep discount. The users of Netflix’s rental service are certainly fans of physical media, but if they wanted to own the movies they’re renting, they likely would. Others, who have largely adapted to the streaming lifestyle, probably aren’t looking for more physical movies.
While Netflix apparently won’t be selling to Redbox, the CEO does believe that Netflix’s decision will still be a benefit to his business. There are an estimated 1 million subscribers to the service today, many of whom may go looking for an alternative, and Redbox is really the only major game left in town.
The global pandemic pushed a lot of studios to focus on streaming, with studios like WB releasing movies in theaters and on HBO Max at the same time. Home entertainment revenue, which had been worth billions, ended up getting cannibalized in the process, but some studios have indicated a desire to go back to the old "windowing" structure, which could mean a boost for physical media, including the rental market.
