Cash-strapped and in the red to the tune of several billion dollars, the U.S. Postal Service is looking to raise rates early next year. Among the proposed hikes would be a 7% to 8% fee increase for items such as DVDs and books. Netflix, one of the USPS’s biggest customers, would take a $50 million hit on top of the hundreds of millions it already spends annually on postage if the proposed increases take place, estimates NewTeeVee. And Netflix is just fine with that, says a company spokesperson.
Netflix spokesperson Steve Swasey said the following about the potential rate increases:
“We are supporting the postal service with all of its proposed changes, not just one in a vacuum . . . We believe a stronger postal service with affordable rates is better than a weakened service. They needed to make some changes.”
While Netflix is gradually moving away from its core DVD-by-mail business as its streaming service picks up speed, the company still continues to foresee growth in the by-mail sector for the next few years.
Should Netflix’s apparent support for the proposed postage increase be filed in the “What could they do about it, anyway?” box? Could these higher shipping costs be passed along to customers in the form of increased Netflix subscription rates?