Netflix Could Suffer From Postal Service Changes

Established in 1997, Netflix expects to spend hundred of millions of dollars on postage in 2010 to deliver DVDs to over 12 milion customers. Now the central pillar of the Netflix business model (receive DVD's through the US mail for a cheap flat rate) is threatened by changes (increases in postal rates and the elimination of Saturday delivery) that the US Postal Service says are necessary to stem a tide of red ink. In this March 30th, 2010 MSNBC article, Ethan Epstein describes the problems Netflix will face if the USPS makes these proposed changes.

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