Renting DVD/Blu-ray Disc movies remains big business (and profitable) for Netflix.
The SVOD Behemoth launched in the late 1990s as a pioneering by-mail DVD movie rental company, taking on former brick-and-mortar heavyweights Blockbuster, Hollywood Video and Movie Gallery with a revolutionary Internet-based service.
While the company has put all its efforts into streaming video since 2007, it continues to cater to millions of DVD/Blu-ray Disc rental subscribers. Blockbuster & Co. shuttered operations years ago.
Netflix ended 2019 with 2.1 million disc subscribers, which was down 553,000 from more than 2.7 million disc subs at the end of 2018. The service remains immensely profitable, generating $37.3 million operating income on revenue of $68.4 million. For the fiscal year, disc rentals generated $174 million operating profit on revenue of $297.2 million.