Netflix cuts DVD-rental business 25 years after it launched the company  

Netflix says goodbye to physical DVDs 25 years after the mail service irreversibly disrupted the movie rental industry.

In a series of announcements on Tuesday, Netflix officials thanked users who had supported the program that led to the company’s massive success today and at one point had more than 20 million subscribers.

“Those iconic red envelopes changed the way people watched shows and movies at home — and they paved the way for the shift to streaming,” a statement from Netflix reads.

The decision didn’t go over well on social media, however, as many users called out the company for abandoning its roots.

‘Waste decision. I still get the DVDs. So much better than Netflix streaming selections. Keep up the superior service: @criterionchannl,” one person wrote.

“Those iconic red envelopes changed the way people watched shows and movies at home — and they paved the way for the shift to streaming,” a statement from Netflix reads.

In the statement shared on Twitter, the company acknowledged their “incredible 25-year run” and their commitment to always serving the best interests of the company.

Our goal has always been to provide the best service to our members, but as the company continues to shrink, that will become increasingly difficult.

The company will ship the final discs to customers on September 29.

“We feel so privileged to have been able to share movie nights with our DVD members for so long, so proud of what our associates have accomplished and excited to continue to delight entertainment fans for decades to come,” the statement concludes.

Twitter users were quick to criticize the decision and also questioned the logistics of the plan to end the service.

‘NOOOOO! I have 221 movies in my queue and maybe 10 are available via streaming. What should I do?’ asked another user.

“So if we have some now, should we send them back?” joked one person.

“The end of an era,” one wrote.

In the statement shared on Twitter, the company acknowledged their “incredible 25-year run” and their commitment to always serving the best interests of the company. Pictured: Netflix founder Reed Hastings

“We feel so privileged to have shared movie nights with our DVD members for so long, so proud of what our associates have accomplished and excited to continue to delight entertainment fans for decades to come,” the statement concludes.

Along with the DVD announcement, Netflix shared its earnings report and new subscriber numbers.

Netflix added 1.5 million new subscribers in the first quarter, bringing its base total to 232.5 million subscribers worldwide.

While high, the number was down significantly from the 7.7 million new subscribers in the fourth quarter. Q1 numbers also fell below Wall Street expectations.

Sarandos said the results were “a business-as-usual quarter for us.”

According to an Insider Intelligence analyst, the numbers may reflect the troubles ahead for the company.

Paul Verna told the Wall Street Journal that the results “leave open questions about the company’s ability to revitalize its business with an advertising layer and a paid password-sharing program.”

The company’s revenue outlook for the second quarter is also lower than expected.

“These are worrying signs for a company that, while still leading the market, is struggling to regain its mojo,” Verna said.

The “worrying signals” come as Netflix also has to deal with news that the Writers Guild of America authorized a strike vote if no new deal is reached by May 1.

In addition, the streamer faces increasing competition from other platforms.

Netflix co-CEO Ted Sarandos (left) (and co-CEO Greg Peters (right)

Company officials also commented on Tuesday about the crackdown on password sharing, which was recently introduced Portugal, Spain, New Zealand and Canada.

Netflix said they plan to expand the crackdown to the US this quarter.

Officials said the plan had worked and profits were high.