By George Anderson
Many consumers have marveled at the speed at which Netflix turns around returned movies and gets new ones into their mailboxes. Many members of the video rental service get new movies in a day. The ability to consistently accomplish this feat is a testament to the company and its delivery partner, the U.S. Postal Service (USPS). So, what will happen to Netflix once Congress approves the end of Saturday postal deliveries?
Netflix, according to a report on The Big Money website, is the biggest customer of USPS. The company expects to spend $600 million on postage this year. But, with cutbacks in delivery service and potential hikes in the future, is it possible that consumers may seek other DVD rental options?
According to The Big Money article, "The elimination of Saturday delivery would mean that Netflix subscribers will have to endure two consecutive days of no service -- nothing to scoff at in a time when consumers have come to expect high speeds and (nearly) instant gratification. And Saturday is a big movie day; the blogger who runs the online bible for Netflix fanatics, Hacking Netflix, said via telephone that many subscribers have come to expect to receive movies on Saturdays and may be very disappointed."
Discussion Questions: What effect do you think the elimination of Saturday postal deliveries will have on Netflix and the DVD rental market? How likely, for example, are Netflix subscribers to try other video rental options with the elimination of Saturday postal deliveries?