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download (1)Among the other revelations from Netflix’s recent financial report is the fact that the company still generates more than half of its operating income from its DVD-by-mail business. Netflix made nearly million in operating profits from disc rentals this most recent quarter.
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Netflix’s CFO, David Wells, said that he believes DVD will continue to be around for a while, even if Netflix doesn’t emphasize it.
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Said Wells:

“I continue to believe the DVD business is going to have a long tail,”

Netflix CEO Reed Hastings also made a dig at Redbox, saying that the kiosk operator’s reliance on mostly new release rentals makes it more vulnerable to competition. Said Hastings:

“Whereas a broad [title] selection renter like [us], on a stable business is much less sensitive to that,”

Do you think that Wells and Hastings are right in their assessments, Insiders?

[via Home Media Magazine]

7 Responses to “Netflix CFO: DVD Biz Has ‘Long Tail’”

  1. Visitor [Join Now]
    Vernon Dent [visitor]

    Wells and Hastings should have stated…

    “disks by mail”

    to include Blu-ray titles with added-valued content.

  2. Visitor [Join Now]
    Danofive0 [visitor]

    I love my NetFlix. Three out in the mail… And my turn around time is great.
    I am getting 16-17 disc a month. Red Box can’t touch it.
    And I don’t need to drive over and take the disc back. Everything comes right to my door.
    Just my two cents worth.

  3. Visitor [Join Now]
    shawn [visitor]

    Just waiting for Hastings next unethical big surprise increase

    • Visitor [Join Now]
      darrellp52 [visitor]

      They’ve done well comparatively. Just look at the annual raises by cable companies, now that’s unethical. Or what about the billions the oil companies brought in when I could barely afford to fuel my car. You want unethical? Point your finger at Wall Street & shareholders, who are so Fu*king greedy they always want more.

  4. Member [Join Now]
    jonmac

    Discs are here for quite some time. It’s just natural for a lot of people to want o have a collection, or at the very least, something to hold on to. Believe me, I stream hours upon hours of Netflix each month, but I still hit “the box” about twice a month for new DVDs. And I occasionally hit either the Walmart or Best Buy discount bin for Blurays for $7 or $8 each.

  5. Member [Join Now]
    jillmarie

    It would be great to not have to return a DVD by driving up to a kiosk for sure. That said- there is no “Inside Netflix” (that I know of) and no “Netflix codes” for free rentals (again, that I know of). I haven’t paid for a rental for years with codes for Redbox, can’t say that about Netflix…

  6. Visitor [Join Now]
    Danofive0 [visitor]

    I think as people have said. Disc will be here for a time yet.
    Yes NetFix is trying to do away with the in the mail deal. BUT! It will be a long time yet. As over 50% of the people that have NetFlix what them in the mail.
    I have three in the mail. And the online deal. I still find all kinds of DVD’s that NetFlix does not have online. They just can’t put them all online. With that said.
    What I can’t get online. I can get in the mail. And yes I still buy a few disc, and TV shows on DVD.