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| DATE | 2007-12-11 |
| FROM | Ruben Safir
|
| SUBJECT | Subject: [NYLXS - HANGOUT] Netflix is TOOO Big
|
IT U.S. Post Service Issues Netflix Ultimatum Jason Mick (Blog) -
December 7, 2007 8:47 PM
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Protected by FormShield The U.S. Postal Service is tired of being used
and abused by Netflix
Netflix is one of the most popular video rental services and it
revolutionized the industry by expanding the mail rental business into
a major market, by clever use of online services. It recently pleased
customers by dropping its 3 DVD-at-a-time rental fee another dollar,
to a low price of $15.99 a month. It also recently made up with long
time rival Blockbuster.
However, Netflix has some serious competition for the online/mail-order
rental market. Despite settling its difference with Blockbuster, the
mostly-store based giant threatens Netflix by pushing its online offerings
with a broad array of promotional offers. Further, Apple has been
speculating on launching its own online rental service to rival Netflix.
Now Netflix has an unexpected new detractor: the U.S. Postal Service.
The U.S. Postal Service's Inspector General feels Netflix has used
and abused the system. The bone of contention is Netflix's use of
oversized mailers. The use of these the Postal Service estimates cost a
staggering $41.9M in additional labor over the last two years do to the
"nonmachinable nature" of Netflix packages.
The Inspector General is fed up and is preparing to take action after mounting losses. Conservative estimates of the situation would account for $61.5M in additional losses over the next two years. The office issued an ultimatum to Netflix -- reshape their mailers or face a service charge of 17 cents a mailer.
While the small fine sounds insignificant, it is calculated that it would reduce Netflix's operating income by 67 percent.
Netflix agreed it will cooperate and redesign the mailer, but it is another bump in the road for the still wildly successful mail-order service.
--
http://www.mrbrklyn.com - Interesting Stuff
http://www.nylxs.com - Leadership Development in Free Software
So many immigrant groups have swept through our town that Brooklyn, like Atlantis, reaches mythological proportions in the mind of the world - RI Safir 1998
http://fairuse.nylxs.com DRM is THEFT - We are the STAKEHOLDERS - RI Safir 2002
"Yeah - I write Free Software...so SUE ME"
"The tremendous problem we face is that we are becoming sharecroppers to our own cultural heritage -- we need the ability to participate in our own society."
"> I'm an engineer. I choose the best tool for the job, politics be damned.<
You must be a stupid engineer then, because politcs and technology have been attached at the hip since the 1st dynasty in Ancient Egypt. I guess you missed that one."
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