What if the Post Office demands additional fees for selected and not to others? "It turns out that those patented funky red DVD mailer envelopes are a pain for the postal service. They "sustain damage, jam equipment and cause mis-sorts during automated processing," and the postal service has had enough. The Inspector General is asking to charge an extra $0.17 per DVD mailer if adjustments aren't made to make the envelopes more "machinable." While $0.17 may not sound like a lot, a research analyst at Citibank cranked the numbers and found that it would likely cut Netflix's monthly margin per customer from $1.05 to $0.35 -- basically killing 67% of its margin"
Government should not be the sole provider of a good or service unless there is a compelling reason to believe that the private sector will fail in that role. That leaves plenty for government to do in areas ranging from public health to national defense. Still, that leaves a lot of things that government should NOT be doing. Delivering mail is one of them. - Naked Economics, Wheelan
Effectively raising fees to the consumer with no differences in the NetFlix OR Postal service(s). I would expect the USPS to 'deal' with this issue sorting and machine error, yet with a monopoly on mail delivery a 'tax' seems the only way to go!?
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Re: United States Postal Service boycotts Netflix's envelopes
Yet another reason to not use the postal service.
Re: United States Postal Service boycotts Netflix's envelopes
But see, if they are jamming the machines, I see it as taking more time to get other mail through the system. This could lead in a rise in prices for all of us. If postal workers didn't like a package because they don't fit well in mailboxes, that's something to argue about. But if netflix could change their packaging. They could come up with something new that doesn't break the machines nor cut in their profit margin.