The popular retail giant has long been a choice for shoppers on the hunt for an entertainment bargain.
A spokesperson responded to backlash with a statement to Femail: "As part of Kmart expanding range of in house designed products we have made the decision to exit DVDs, CDs and Blue-ray products so as to allow space within the store for our new creative and activity based kids' products.
"At present, our DVDs, CDs and Blue-ray products are currently on clearance as part of the transition, we thank our customers and suppliers for their support."
All entertainment discs are currently on clearance at Kmart Australia stores nationwide for between 25 and 50 per cent off
Angry shoppers took to the Kmart Mums Australia Facebook page to vent their frustration.
"I don't think they should get rid of it, just make it a really small section like they have for kids craft', one wrote, with another adding, 'Watching online is all well and good if you live in an urban area with heaps of usage and great service - too bad about those of us who live in rural areas with dodgy service and expensive usage."