U.S. Postal Service to Netflix: You’re killing us on labor
Posted on December 11th, 2007 by freedvdtrials.com
Netflix’s return DVD mailers are apparently costing the U.S. Postal Service $21 million in annual labor costs. And the Postal Service wants some of its money back.
Simply put, Netflix’s return DVDs clog the postal machinery and require manual sorting. When Netflix subscribers open their mailers the leading edge of the package is removed. On return, the same package comes back without the hard edge and plastic instead and jams the sorters.
According to Citi analysts Tony Wible and Mark Mahaney a potential 17 cent surcharge to Netflix’s DVD return packages would crush the company’s operating income per subscriber
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