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As it struggles to stay relevant in an increasingly digital world, the decidedly analog U.
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S. Postal service is bleeding money in quantities that would make even a Blockbuster executive quiver.

In the last financial year, the has USPS lost $8.5 billion, and there are some members of congress that believe the Postal Service will need a bailout or its continued operations may soon be in jeopardy.  Disrupted or ceased USPS service would affect many industries and companies, including the Postal Service’s largest customer, Netflix.
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Sen. Tom Carper from Delaware summed up his view on the USPS’s plight thusly:

“If corrective action is not taken quickly, the Postal Service will likely run out of cash and borrowing authority by this time next year, placing its ability to continue operations in serious jeopardy,”

Fortunately for Netflix, which pays the USPS more than $600 million per year in fees, several analysts believe that the content provider could survive a diminished or defunct Postal Service. From Wedbush Morgan’s Edward Woo:

“Most likely postage rates will increase and service will be cut on Saturday . . . While both are bad for Netflix (and other DVD by mail services), they aren’t critically bad and likely won’t change the tide of subscribers moving to Netflix.”

Merriman Curhan Ford analyst Eric Wold also believes that Netflix, which recently declared itself a streaming company, is diversified enough to press on should the worst befall the USPS. Said Wold:

“It’s getting tough to know if streaming is considered the incremental business or if that’s DVD, given that [Netflix said] more hours are being viewed through streaming than DVDs,”

What do you think, Insiders? Does Netflix have anything to worry about if the USPS cuts its service drastically? How many of you still use Netflix more for its DVD-by-mail service than its streaming option?

(via Home Media Magazine)

24 Responses to “Netflix in Trouble if USPS Goes Bankrupt?”

  1. Member [Join Now]
    jakoblin [jakoblin]

    who use streaming by netflix

    I love free movies and free tv shows

    I don’t even own a tv anymore.

    fyi i don’t even pay for wifi any more i use cantenna a antenna that give me a 1 mile range to connect to the free hotspot called : starbuck that is a mile away distance.

    • Visitor [Join Now]
      Rikki [visitor]

      Don’t you feel like your identity could easily get stolen being on an unsecured network like that? We have problems and we use a wireless router in our home on a secured network. Once you go unsecured you open up a whole can of worms in the way of people hacking into your computer.

    • Visitor [Join Now]
      Frango [visitor]

      What kind of antenna do you have that can pick up a wireless signal that far. I want one. :-) Please reply to this post with a brand and model and a place to buy it and price if you know it.

  2. Member [Join Now]

    oh yeh. if the post office cuts service. netflix goes bye bye!
    without postal workers working sat, there are no more 9 per week rentals.
    the max is then 6 per week. (which is very easily done, even with a holiday)
    that would reduce the overhead at the post office, but also their reveneue
    if as i asuume they pay per piece mailed not just a flat fee.
    so either way the post office will feel the pain and so will netflix.

    as far as streaming is concerned, i will never do it.
    if things get bad i’ll just go back to downloading movies over inet.
    easily done with a 25mbit/sec pipe, but quality is always questionable.
    i stopped that years ago, but did it with a 1mbit pipe. now with 25 times the download speed and blu-ray 6 times bigger, it will take be no problem.
    hey gotta do something with verizons 25mbits pipe .. use or loose.

    check out alt.binaries.hdtv.x264 … there is nothing you can’t find there.
    example predators BD50 full disk bluray, been posted there for 38 days …
    screw the studios 30 day delay BS!

  3. Member [Join Now]
    EbonyMystique [ebonymystique]

    I would go crazy without netflix streaming. I have never had any problems with playback either. I like hulu but nothing beats commercial free! Plus I watch old shows that are hard to find anywhere else like Fraggle Rock and old British series like Keeping up Appearances. I love the ability to have streaming on multiple devices because I start the show at home on the desktop and continue right where I left off on my laptop while I’m at work. Plus my husband’s younger brother can watch on his xbox and laptop miles away from home. We still have movie night because my husband can set it up a movie theater on the xbox so we all are watching at the same time…which is really nice. I absolutely love Starz which you can also watch live through netflix. Don’t really care if mail service is interrupted, I’m not going anywhere.

  4. Member [Join Now]
    ChadCronin [chadcronin]

    Most of the progress has been online anyways, so I don’t think losing a day would be a huge deal overall. There always is some people who freak out and do drastic things, but I think it would be the minority.

  5. Member [Join Now]

    how do you get 9 movies per week? (3 at a time)

    Say the ship movies monday get them tuesday Return them weds they ship movies thursday you get the friday .. Return on saturday?

    that is a double filp per week… only way i can see getting more is

    They ship monday you get them tuesday and return them tuesday
    They get them Weds you get next movies on thurs you return on thurs
    they get them friday you get them saturday and return sat.

    would never work here cause we dont get the mail till around 1 or 2 (3 movies would = around 5 hours meaning i would return them at 6 or 7 way pass the last pick up time

    Im shocked your not getting trottled if your really getting 9 movies per week

    • Member [Join Now]

      then be shocked … i get 9 a week unless a holiday then 6
      i get them at 12pm … out to PO box by 5pm
      you figure it out

      • Visitor [Join Now]
        Sgt Carter [visitor]

        ARRRRRR! Do you get a good deal on blank disks matey?

        • Member [Join Now]

          Sgt.; can’t wait for “Black Friday”…
          in the past: 100 pack blank DVD’s for as low
          as $7.00!!…
          that was 2 years ago in the “Circuit City”
          bankruptcy, and I filled up a shopping cart and
          bought 20! (it lasted about 6 months)

        • Member [Join Now]

          who needs disks rip takes 15min to hd. overnight copy on 1 ghz network to media computer player. takes 1 min.
          1t wd hard drive costs $89. that stores ~200 dvds.
          plenty to watch. so i get 9 a week, or 1.2 movies a day for 7 days. use hd to timeshift then delete. who has time to watch movies a second or third time? besides all GOOD new releases make it to the library a year later where you can watch them again for free.

          that is only netflix. then there is redbox, bb express, and the library, and friends that get movies. all in all i watch 2.5 a day.
          and sometimes rarely i even try downloading one. everything is available you know.


          • Member [Join Now]

            and the 30 day delay doesnt affect the web. there movies come out, before they are released to BUY not rent BUY.
            and with bluray now, and everyone having mpeg4 or vc1 codecs
            playing even high def recompressed material is probably better then most mpeg2 stand dvds. so the quality is there. at least as good as any cable broadcast of a hd movie.

  6. Member [Join Now]

    I use the Dvd by mail feature more than streaming, mainly because I’m too lazy to sit at my computer.

  7. Visitor [Join Now]
    Heidi B [visitor]

    I am very pleased with the streaming feature of netflix. We use it through our bluray player and have had no problems with it. I’d much rather stream everything than to have to worry about getting a disc in the mail and getting it back.
    I think it’s a ridiculous waste of time to have to mess with the DVD side.

  8. Member [Join Now]

    I was in the Post Office the other day and was talking
    to one of the clerks, and she kept moaning and groaning
    about the drop in mail, and cuts and this and that to
    her co-worker when I mentioned…
    Hey!! I never send my bills through the mail
    (except for a few that charge fees- Like my Mortgage Lender);
    I always pay On/Line, and I am saving about $20 bucks
    a month in postage.
    That’s enough to pay for a 3 at a time through Net-Flix or
    20 movies at RedBox…
    Get my drift???

    • Visitor [Join Now]
      justme [visitor]

      Man, you sure must have a lot of bills! Even at 50 cents per stamp, that would mean you have to pay 40 bills per month to save 20 dollars a month in postage! I usually have around 6 or 8 bills per month and I thought that was bad! LOL!

  9. Visitor [Join Now]
    teew [visitor]

    Sad thing thing here is that the USPS is making more money per month than Netflix on their monthly plan. At 2 movies per week the USPS makes $7 per month off each Netflix customer.

  10. Visitor [Join Now]
    Jason [visitor]

    Plug a paperclip into the back of your hd tv’s cable/antenna jack. You’ll get crystal clear local HD channels.

  11. Visitor [Join Now]
    HP [visitor]

    Even if USPS goes under, there’s still UPS, FedEx, etc. that would happily take over USPS services.

    • Visitor [Join Now]
      BB [visitor]

      Privatize USPS – if they can’t get the job done I’m sure there are plenty who can figure it out.

      Government stinks at running all business. Time for them to sell out.

    • Member [Join Now]

      UPS and FedEx’s business model relies on USPS doing the “dirty work” of everyday mail, allowing the other carriers to concentrate strictly on packages, etc. If UPS & FedEx had to cover the whole mail system, their prices would skyrocket.

  12. Visitor [Join Now]
    Ron Larson [visitor]

    Gosh. I gave up trying to pay bills through the mail. The USPS lost 3 of my American Express payments in 2007/2008, claiming that that address doesn’t exist. Get this…. Amex has PO Box 0001 in Los Angeles. They have had it for 150 years. They have box #1! The first box, and yet the stupid post office can’t figure it out. Now I pay everything on line, or pay it through my credit card (which I turn around and pay online).

    Going the other way, I’ve demanded and gotten pretty much every vendor to only email bills. I don’t want a bill or statement being mailed to me. The only one who still sends me dead trees is my stupid 401k provider, and I think they are required to do so by law.

    The few times I go to the post office now, I can’t believe humans move that slow. Why does it take them 30 minutes to deal with each customer? Are they taking out mortgages?

    I was in a post office in Tucson recently and I saw a sign they posted that is the apitemy of their failure. The sign said “They won’t be able to cash large USPS money orders in the mornings because they probablly won’t have the cash on hand”. Wow. They sell money orders. But they are going to force their customers to work around THEIR schedule because they can’t get their act together enough to make sure they have the cash on hand to honor their own money orders. The fact that they would even bother to get a sign made to inform people of this lamn-ass policy indicates how lost they are. Would you stay with your bank if they acted like this? Hell no.


  13. Visitor [Join Now]
    Sewunicorn [visitor]

    Maybe this is why Netflix announced a new streaming-only plan and a rate increase on all by-mail plans.

  14. Visitor [Join Now]
    tndawg [visitor]

    Does anyone here`s cable/dsl provider have limits on bandwidth per month? That does limit streaming for Netflix for big time watchers.

    On my Comcast it is limited to 250gb per month. If you go over twice in a 6 month period they cut your service for 6 months.

    I`m pulling for the post office to stay open. That is a lot of jobs lost.