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Postal service looking to end next day mail delivery

bruceames
12-05-2011, 09:13 PM
That wouldn't bode well for Netflix disc by mail service, for sure.

http://www.homemediamagazine.com/netflix/postal-service-looking-end-next-day-mail-delivery-25802

PSound
12-05-2011, 09:15 PM
That wouldn't bode well for Netflix disc by mail service, for sure.

http://www.homemediamagazine.com/netflix/postal-service-looking-end-next-day-mail-delivery-25802

As the single biggest cost for the disc-by-mail business right now is postal costs the simple solution is to automatically bump up the number of discs per customer.

Not only would in insure comparable level of service, but it would also buy back some goodwill.

TowerGrove
12-05-2011, 09:21 PM
Hopefully this does not cause another wave of cancellations. :(

bruceames
12-05-2011, 09:24 PM
As the single biggest cost for the disc-by-mail business right now is postal costs the simple solution is to automatically bump up the number of discs per customer.

Not only would in insure comparable level of service, but it would also buy back some goodwill.

Yeah, that would work. Consumers would be bummed about having to wait an extra day (if they had to), but if they lower their prices or bumped it up a disc out at a time, then it may be an opportunity for Netflix to spread some goodwill.

PSound
12-05-2011, 09:37 PM
Yeah, that would work. Consumers would be bummed about having to wait an extra day (if they had to), but if they lower their prices or bumped it up a disc out at a time, then it may be an opportunity for Netflix to spread some goodwill.

Let's say all plans immediately got bumped up at least one disc (with higher disc out plans getting even more of a bump). They can just about guarantee the same level of service and may even be able to get away with closing some distribution centers.

And they get the goodwill from looking like they are taking one for the team.

jkkyler
12-05-2011, 09:46 PM
Something interesting- apparently the politicians pulled yet another fast one that may be responsible for the postal service empty coffers

http://redtape.msnbc.msn.com/_news/2011/10/07/8191425-twisted-government-accounting-behind-postal-service-woes

GizmoDVD
12-05-2011, 10:42 PM
By that time, studios will have a 45+ day delay on New Releases. Will it even matter?

Lee Stewart
12-05-2011, 11:21 PM
Why would it be Netflix's PR problem if the USPS decides to end next day delivery? They have no control over it. It's like an Act of God.

bruceames
12-05-2011, 11:44 PM
Why would it be Netflix's PR problem if the USPS decides to end next day delivery? They have no control over it. It's like an Act of God.

It's not a PR problem, but rather a opportunity to spin some good PR out of a bad turn of events.

PSound
12-05-2011, 11:46 PM
It's not a PR problem, but rather a opportunity to spin some good PR out of a bad turn of events.

Exactly.

Now granted, they totally blew the PR piece of the price change so they could also blow this.

But it could be an opportunity if they handled it correctly.

Lee Stewart
12-06-2011, 12:10 AM
I understand what you both are saying, but this move by the USPS could be a large "gimmee" to NF. It will cut back on their USPS expense.

Adding a disc to DVD plan subs will cost them a fortune.

PSound
12-06-2011, 12:18 AM
I understand what you both are saying, but this move by the USPS could be a large "gimmee" to NF. It will cut back on their USPS expense.

Adding a disc to DVD plan subs will cost them a fortune.

No, it won't.

Not if turn around time goes from 1 day to 3 days.

Remember that they can fulfill the vast majority of consumer requests with catalog titles (which they have a great inventory of).


At this point their single biggest cost for DVD-by-mail fulfillment in Postal Service costs.

Lee Stewart
12-06-2011, 12:23 AM
No, it won't.

Not if turn around time goes from 1 day to 3 days.

Remember that they can fulfill the vast majority of consumer requests with catalog titles (which they have a great inventory of).


At this point their single biggest cost for DVD-by-mail fulfillment in Postal Service costs.

I am a 1 at a time BD/DVD plan sub. By increasing my plan, at no charge to me to 2 at a time, you just increased your mailing expense by 100%

It doesn't make a difference what they send (catalog or new release), the mailing cost is the same.

Kosty
12-06-2011, 12:33 AM
Elimination of Saturday delivery and pickup is also in the USPS proposals as well.

PSound
12-06-2011, 12:54 AM
I am a 1 at a time BD/DVD plan sub. By increasing my plan, at no charge to me to 2 at a time, you just increased your mailing expense by 100%

It doesn't make a difference what they send (catalog or new release), the mailing cost is the same.

If average delivery time goes from 1 day to 3 days, then increasing to 2 discs at a time does not have a material impact on shipment costs over the course of a month.

Lee Stewart
12-06-2011, 01:02 AM
If average delivery time goes from 1 day to 3 days, then increasing to 2 discs at a time does not have a material impact on shipment costs over the course of a month.

I don't know about you but I get a new disc every 5 or 6 days. And that is getting it from the mail, playing it that night and making sure it gets back in the mail the next day for USPS pickup.