A few years ago, Netflix was going to spin off the DVD Service as a separate company. I can't remember the name of it but it was kind of goofy I thought. For some reason they decided to pull back on that and they are still running it as a division within Netflix. However I have to imagine it doesn't make a lot of money compared to streaming. Buying and handling physical media, dealing with damaged media, losses on non-returns, etc. has got to be something that doesn't scale well.