Monday, July 25, 2011 at 4:11 pm.
Netflix: DVD shipments have likely peaked
Netflix just posted its Q2 earnings materials. Peter Kafka is breaking the numbers down at All Things D.
Of note: Netflix says in its bulletin to investors (PDF) that its DVD shipments have likely peaked.
And so far, since announcing its pricing changes earlier this month, 75% of its new subscribers have been signing up for its streaming-only plan.
By the end of Q3, Netflix expects to have about 25 million total U.S. subscribers. Of those, 10 million will be streaming only. 12 million — about half — will get both streaming and DVD rental subscriptions. And 3 million will be DVD only.
So, yes, Netflix is trying to kill the DVD the same way Apple’s iMac killed the floppy.
And its message to Hollywood is: Your DVD customers are going away, so it’s time to start streaming more movies now.