Sunday, September 22, 2019

NETFLIX: MOST PROFITS STILL COME FROM DVD-BY-MAIL

January 31, 2012 by · 2 Comments 

Netflix may be focusing most of its energy on promoting its streaming service, but its DVD-by-mail service is nearly five times more profitable, Home Media magazine reported on Monday. The trade publication on Monday observed that DVD and Blu-ray Disc rentals via the mail accounted for $194 million in profit in 2011, representing 52 percent of gross receipts, while the streaming service brought in $52 million, or 11 percent of the gross. Home Media commented: “The discrepancy underscores an inconvenient truth for Netflix. Namely that while the future may belong to streaming, the present still is very much a disc-driven business, no matter how much management wants to spin it otherwise.”