Netflix To Stop Selling Previously Viewed DVDs November 30th

Netflix has announced that they will stop selling previously viewed DVDs on November 30th. Some titles are as low as $5.99, and you can view the entire list of available titles on the Netflix Website.

The reason from the Netflix website:

We thought about it and it makes sense for us to focus on our main business - delivering great movie rentals to you by mail and instantly. We're sorry for the inconvenience.

Here's the e-mail Netflix is sending to customers:

Thanks to Dave, Dan, and Tommy for sending this in.

Comments

[Edward]

Boo... very depressing. I love buying previewed DVDs.

[Chris]

I agree Edward. I thought they had some great deals and have bought many over the last few weeks. Anyone know why they stop? Seems like a profitable way to sell any surplus DVDs.

[Josh Forman]

Seems like it'd be better for them to just let the supply run out, and/or streamline the process by allowing us to buy the disc we have (if eligible) or they just send the disc like a rental (it just gets thrown into the process with all the rentals). Personally I no longer want the box anyway.

OTOH, I just browsed the whole collection and only wanted 2 discs, so I probably won't miss this.

[genetikci]

i bought a few discs through this, but in a world where Netflix, Hulu and the likes exist, buying doesn't make much sense anymore.

The question is what they will do with the extra discs. You need more copies of a disc when it is new, but then the interest wanes and a smaller number will circulate. Will they sell them to Blockbuster, donate, destroy or keep a larger inventory?

[RobertB]

My guess was that the studios made Netflix quit selling the discs at a discount. They'd have the leverage to make Netflix cave -- we already know that NF gets specially-pressed discs from the studios, so we can assume they're getting some sort of deal on the cost.

Also, I know I've been frustrated by the lack of selection. How many customer support requests have they recieved, I wonder, asking "Why isn't X available to buy?" Since NF doesn't want to compete with Amazon, eBay, and Blockbuster -- not to mention P2P -- in the used DVD market, it makes sense for them to stick to their bread & butter.

I bought a handful of discs from NF because of the convenience and reputation, but this isn't like Profiles. It's not an essential part of the package, and I probably won't even notice that it's gone.

[Gir]

I loved the idea, but the luster wore off pretty quickly. Most good titles cost $9.99, which isn't that much of a discount, and several of the disks I bought had minor damage (small cracks at the hub).

[Seth]

"My guess was that the studios made Netflix quit selling the discs at a discount. They'd have the leverage to make Netflix cave -- we already know that NF gets specially-pressed discs from the studios, so we can assume they're getting some sort of deal on the cost."

Agreed.

- It put Netflix in a conflict with the studios with which it is always negotiating with for better and more innovative terms.

- The studios probably felt like they were getting screwed - they were selling DVDs cheap to Netflix. And then Netflix turned around and undercut the studios with that same product.

- Netflix doesn't want to own DVDs anyway. They want to license the rights to distribute the movies to you for a profit. They rather have the studio give them a gazillion discs they don't own and just figure out a fee per rental or viewing.

- The fact that they even had the discs to sell underline that they weren't going in optimal direction.

[andyg8180]

Its because when you lose a disc and your honest, they want to charge you $40 for the disc instead of 5.99... Its a simple answer :-)

[ja]

It's only $20.

[Brandon]

I won't miss this much, but it does beg the question of what they will be doing. I hope that it is at least an environmentally friendly solution.

[Complication]

"My guess was that the studios made Netflix quit selling the discs at a discount. They'd have the leverage to make Netflix cave -- we already know that NF gets specially-pressed discs from the studios, so we can assume they're getting some sort of deal on the cost."

I'm thinking it was the other way around. Netflix was selling the DVDs that they had to buy sideways (Walmart?) in an effort to recoup the higher cost and pressure the studios into a contract. The studios don't want the discs sold used because they see them as lost bargain bin sales.

Now that the VOD agreements (Watch Now) are gaining ground, there are probably less and less studios that Netflix has to buy sideways.

[Jax Maxton]

This is all about Watch Now deals. In order for Netflix to sign on more studios, the studios don't want Netflix's DVD sales cutting into brand new sales. Remember, the real fear the studios have after copying is that things like Watch Now and Hulu will eat significantly into their bottom line. Since the studios probably have some leverage with Netflix right now, they can make demands like this and Netflix will have to comply or else lose on-demand business.

[Throttled by Netflix]

They would like to phase out physical DVDs completely.
Eventually you will see them stop renting physical DVDs too.
Just wait, it won't be long.

[nipsey russell]

"They would like to phase out physical DVDs completely.
Eventually you will see them stop renting physical DVDs too.
Just wait, it won't be long."

i am willing to bet it will be long...its not going to be 2009...or 2010....

It wasn't even a week ago that Redbox filed a lawsuit against Universal for bullying them into stopping sales of their used DVDs, I think the reason behind this move is crystal clear.

[eviltimes]

I bought one couple of months ago just to check it out. No shipping, but state sales tax! The next week I saw it at ChinaMart for $5. So, no big loss.

[dAVe]

I know a lot of people that buy DVDs rather than rent. For them spending good money on rent seems like a waste. They either get them new on DVDTuesday at Wallymart, overstock bargain bins or previously viewed. This deal here, NF selling used, is (or soon to be was) only available for NF subscribers. BB will sell used DVDs to anyone, subscriber or not, online or brick-and-morter. So, no worries Mr or Ms Collector, you can still get your ownership fix elsewhere.

[Steve]

Anyone think the prices will go down even lower when the final date approaches or are things going to stay steady?

[kh]

I don't know, but my guess is the price won't go down. The $5.99 already includes shipping, and I'm sure there's a point where it's cheaper for Netflix to trash them than to fill orders.

[abibyser]

They may have simply found someone else to sell these used discs in bulk.

[Abbey]

Many of the used movies can be bought at 1/2
the price at Am**on. I don't see a problem...

[dAVe]

Jezzz, I'm not sure why this is such big news. The ABC Denver affiliate ran this story on their 6PM broadcast.

[John Kimble]

Well its also that Netflix is consolidating, they are closing sections down and trying to move in a different direction, this is at the same time they are begining steps to disolve there Customer Service and Technical SUpport departments and consolidate them down into one division that cant function on the same level, its really all about the bottom line. Netflix thinks that by considating the business both externally and internally that it will improve there business. I would like to think this is hopefully the case but I am very pessimistic about there recent business practices.

[Linda Crowder]

This is my first visit to your site. I think this is a wonderful, informational blog. Thank you for doing it so well. It give insight into problems and lets your readers see the answers and comments. Something we certainly can't get from Netflix nor the media. I was trying to find where to buy a previously viewed movie and came across your site via Google Search. Thought you might like to know? I hate to hear they are stopping a service I just found. Maybe I can take advantage of the last sale at least. I don't know who to turn to next to find where to buy cheap movies, as I am on Social Security. I don't buy many but occasionally I find one I love like August Moon. If you know where to direct me, please send me a brief email at your convenience. Thank you for what you do!

[Wow]

It's funny, though I never bought any used DVD's from Netflix, now that they're getting rid of them I suddenly want to.

[Mike S.]

Used DVDs are the dumbest product ever. The corruption rate is absolutely outrageous. Back when I was only viewing DVD and HD-DVD, nearly 25% of everything I played needed to be returned. I even purchased a new DVD player thinking I was the problem. Nope. It's better for Netflix to move everyone involved with old DVD sales into making their online movie division perfect.

Besides, they can sell their old DVDs to companies which specialize in distributing bad media.

[Robert]

I'm furious about this decision. Buying used DVD's at a good price was one of the primary reasons I signed up with Netflix! I really liked the option to own a new movie after I borrowed it and liked it!

[email marketing campaign]

I think they might have already sold enough the stock or it may be just a break to adjust the price. Anyway, it is worrying.