Post Office Sees Red Over Netflix Envelopes

This is on IMDB.com today...expect your rates to go up boys and girls...

Analysts on Wednesday downgraded Netflix's stock after an audit by the U.S. Postal Service determined that the company's return envelopes jam automatic sorters and have to be sorted by hand. The postal service indicated that it was likely to charge Netflix an additional 17 cents per envelope to process them. Netflix ships 1.6 million DVDs daily. The 17-cent surcharge would therefore cost the company almost $100 million per year. Netflix is expected to redesign its distinctive red envelopes in order to avoid the charge.

Mother cracker. I like my 8 movies a month for $9.

Jason

why the heck they can't change the envelopes. The envelope is really long considering half of it is not used. Blockbuster's mailing envelope is better. I think Netflix was asking for trouble for a long time.

So....Netflix turns around and adds the 17 cents to your rental....big deal. If someone can't afford 17 cents more than they shouldn't be renting videos in the first place.

[Post edited by Bosshog7 on Dec 6, 2007]

Quote:
So....Netflix turns around and adds the 17 cents to your rental....big deal. If someone can't afford 17 cents more than they shouldn't be renting videos in the first place.

I won't necessarily disagree with you, but it's 17 cents now after a rate decrease earlier this year. Postage goes up, the consumer pays. New envelopes, the consumer pays. The Post Office has issues with the processing, the consumer pays. At what point does the consumer not pay and these companies/organizations work together to solve the problem without asking for more money?

Jason

Let's not assume that because the post office is raising the rates 17 cents that the consumer will only see a 17 cent raise on cost to rent a movie. The post office charges Netflix 17 cents, Netflix will probably charge you more than that.

17 cents per envelope per shipment received or sent can easily amount to several dollars tacked on to your monthly subscription.

I think the most annoying thing is the post office just started complaining about this? Netflix has been around for a while now and this could have easily been resolved long before this. All the post office had to do was request they use different envelopes. Instead they wait until now and it's going to effect the consumer more then anyone else.

This is funny, I just joined Netfilx this afternoon. 2 week trial membership.

I think the Post Office should go into the movie rental business. . . problem solved!

Your movie is around here somewhere let me see..........

I wonder how many discs were cracked to take this picture?

[Post edited by tony1569 on Dec 7, 2007]

Ah yes, our postal carriers at work. The same thing happened with the now defunct William Shatner Sci Fi DVD CLub, of which I was a member. The Post Office did not like the orientation of the mailing label, so they would not deliver them. Full Turn Entertainment had to paste on new lables in the opposite direction to comply. The club folded shortly thereafter.

[Post edited by StevePro on Dec 7, 2007]

may if they'd, i dunno, cut that damn flap off the end that sits there as waste and make the envelopes smaller, they wouldnt have that problem. I never understood why they have a good extra 1/3 of a mailer that isn't neccessary.

We can always get out of our houses and drive to the nearest Blockbuster or Hollywood rentals...and actually see more of the daylight and get to be outside...just an opinion...

Quote:
We can always get out of our houses and drive to the nearest Blockbuster or Hollywood rentals...and actually see more of the daylight and get to be outside...just an opinion...

And be robbed by the price of a rental? I think not. What is Blockbuster up to now? $3.50? $4? I patently refuse to step foot in that store because of it.

Even if I hold onto a Netflix rental for a week at $9.53 (with tax) per month-also assuming one at a time-the price per DVD is still a full dollar less than BB.

Blockbuster (at least in my area) has a new pricing policy where everything (excluding new releases) is 99 cents, which sounds cheap but you only get it for one night. Then they charge you an additional 99 cents per every day you have it.

Talking about free markets...

Quote:
We can always get out of our houses and drive to the nearest Blockbuster or Hollywood rentals...

Because Netflix has a vast library that BB & HV don't have.

. . . just an opinion.

Because we always have an option...

Because they have the right to increase their prices at will (just as George Lucas has a right to modify his movies)...

The current problem with red Netflix mailers didn't have to happen. Before Netflix switched to the lighter, flimsy red envelopes, for many years they used a much tougher/thicker (stronger paper) and durable envelope. The color was plain (ivory) with black ink used for their name/address/logo design. Don't recall if the older envelopes had any issues with the P.O, but definitely the new envelopes are not very good, as I get many that are torn, and have opened to find 3-4 'cracked' discs during the last few years.

-Love Hendrix! (The Loverboy)
~ DVD/HD-DVD/Blu-ray owner ~

Looks like costs may go up on Netflix regardless...

Internet Downloading No Threat, Says Netflix CFO

It is likely to be a long while before movie downloading becomes a significant challenge to the DVD rental business, NetFlix CFO Barry McCarthy told an investment conference in San Francisco Wednesday. "There are 100 million DVD players in U.S. households," McCarthy told the Thomas Weisel Partners Technology, Telecom & Internet Conference. "If you really think people are going to stop renting DVDs, you need to lie down until that thought passes." As reported by Video Business magazine on its website, McCarthy also suggested that Netflix may raise the price of its rentals for high-definition discs if those who rent them begin to represent a significant factor in online rentals.

I don't see how they can reliably charge people with high def discs in their queue's. I mean, I have a mix of standard, HD and Blu Ray discs, yet haven't seen a hi def disc since early January.

The obvious solution if there are increased solutions is to rent the standard versions only. Wanna play hardball? I'll play.

Jason

JJ79... I just recently received both the 3:10 to Yuma Blu-ray and the Zodiac HD-DVD, and didn't have to wait long, as I had only put them in my queve about 10 days ago.

Maybe it depends on the area where you live, and how many copies the local Netflix service center carries of a particular title vs how many hi-def disc owners live in that area [demand]. Obviously, sometimes we have to see those "long wait" and "short wait" messages listed by titles in our queve, but there are plenty of other titles to watch while waiting.

-LH (The Loverboy)
~ HI-DEF DUAL FORMAT SUPPORTER ~

The original "Elizabeth" HD DVD currently has a Very Long Wait in the Sacramento, CA region.

As for the red envelopes, my mailbox drop slot just fits the disc, so I've got to wriggle my discs to get them in without ripping. I hope my crinkled edges weren't the straw the broke the camel's back...somebody's were!

LH-

Maybe I should have clarified in my original response. I didn't have any high def media in my queue since Sunshine in early January. That's what I meant by not seeing any. And the next thing I have in there is The Devil Wears Prada at #3.

Jason