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Netflix nets sales from used DVDs

$10.99 price includes free shipping, packaging

Netflix, the top online subscription DVD rental service, has started selling discs as well.

Netflix began offering previously viewed DVDs to customers last week via a new “Buy Movies” tab on its Web site.

Most DVDs are priced around $10.99 and include free shipping, the original packaging and a guarantee that they will play.

The company is selling off titles that aren’t renting well, Netflix spokesman Steve Swasey said.

Before it sold them used to customers, the company would store titles that weren’t renting in its warehouses. A couple years ago, Netflix sold some of its less popular inventory to a wholesaler, Swasey said.

Netflix isn’t viewing the sales as a significant part of its business and has already built revs from the effort into its financial guidance.

“It’s not a major promotion for us,” Swasey said. “We’re doing it as a value-added for members, and it’s a way to move some inventory that isn’t in much demand.”

Exec moves

Meanwhile, Netflix on Monday named AskJeeves chairman George “Skip” Battle and venture capitalist Greg Stanger to its board.

Battle was CEO of the Internet search-engine company AskJeeves from 2000-03 before becoming chairman of the company, which was sold to IAC/InterActiveCorp in March.

Stanger is a venture partner at Silicon Valley-based Technology Crossover Ventures.  

(Jennifer Netherby is a reporter for Daily Variety sister publication DVD Exclusive.)

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