One of the reasons besides stocking less physical media and closing down some warehouse centers, back in early June, NF ended Saturday processing and shipping .. this move essentially resulted in a 17% reduction in service since the majority of Postal holidays fall on a Monday .. and also resulted in a fairly large quiet price increase for disk subscribers ..
NF is letting the physical media side die off slowly and is helping it along by short ordering titles, it's as simple as that .. although NF has stopped issuing churn numbers in it's reports, at the peak, a 3 disk out plan with perfect timing could theoretically churn 39 disks a month by burn and return methods ..
Although the physical disk business is still profitable, subscriber numbers have been dropping .. and you'll notice that NF is not doing much of anything to promote the physical disk side ..
The more lucrative self produced content, the fact that Hollywood has always hated the first sale doctrine on physical media, the continued successful expansion of streaming by NF outside the USA and other factors are continuing to herald the death of DVD / BD as far as NF goes ..
This still allows outfits like Redbox and www.3d-blurayrental.com
to pick up the slack for a while, anyway ..
Shareholders, of which I admit to being one, have driven the stock up to about $445.00 a share, a clear signal that they believe NF is doing the absolute right thing and content delivery will continue to advance to the Cloud with less and less reliance on disk ..
Add to all that the fact that NF has become as ubiquitous as McDonalds / Coca Cola, etc, and is embedded in about every viewing device out there, Hastings knows he is and will be the market leader in all you can eat buffet streaming ..
And that's exactly what he wanted from the get go .. in fact, he'd prefer if you did cancel your disk plan ..