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!