It’s no secret that the United States Postal Service (USPS) is hurting. So much so that the organization has unveiled a massive, multi-billion dollar cost-cutting plan to allow it to remain viable and hopefully return to solvency. The plans cuts, while beneficial for the USPS, could have a major impact on DVD-by-mail providers such as Netflix and Blockbuster by Mail.
David Williams, USPS’s VP of network operations, said the following about the proposed plan:
“The proposed changes to service standards will allow for significant consolidation of the postal network in terms of facilities, processing equipment, vehicles and employee workforce and will generate projected net annual savings of approximately $2.1 billion . . . This is part of the overall savings expected from the network optimization initiative, which is projected to save up to $3 billion by 2015.”
Part of the plan involves eliminating first-class, next-day delivery of many items—including DVD and Blu-ray mailer envelopes. The move would delay millions of Netflix and Blockbuster by Mail movie shipments by at least a day in most cases. Netflix, despite its major shift towards streaming, remains the USPS’s largest individual commercial mail client, with postage expenditures topping $500 million annually.
Would Netflix need to lower the prices on its DVD plan to make up for the delays? Could the USPS’s move usher in the DVD-less era more quickly? Let us know what you think in the comments.
(via Home Media Magazine)