Netflix has made no bones about the future of its DVD rental business. CEO Reed Hastings has argued that it's DVD-based mail-order accounts will continue to shrink with every passing quarter. Netflix closed out the quarter with 7.98 million DVD subscribers at the end of March, 240,000 fewer than it had three months earlier.
Netflix has routinely provided subscriber, revenue, and contribution profit guidance for its streaming and DVD businesses. On Monday, it only provided contribution profit guidance for its DVD business. Netflix expects this to be the case in the future, as the number of DVD customers and the dwindling revenue they generate continues to shrink.
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