Tuesday, October 27, 2009

Netflix is our best customer, but don't count on it lasting

This year, Netflix will spend $600 million on postage. That makes them our biggest customer. 

But according to their CEO, Reed Hastings, the company is making the transition to streaming video content. And he predicts the DVD may go the way of the VHS tape as early as two years from now as people download movies through their computers or Internet-enabled television sets.

Do you see a different kind of product being shipped through the mail? Something else that might help our volume?  Comment here.


Anonymous said...

I don't agree that DVD's will disappear unless technology for streaming video vastly improves and receivers to stream to your TV are free. I don't like watching videos on the computer, they're often "jerky" or delayed and the screen is small. I also won't pay for a "streaming" receiver for my TV when I already have a DVD player. It will be hard to replace the revenue that will be lost, though, as fewer DVDs are rented through the mail. The Postal Service is really going to have to work to capture the parcel business and overnight business. Our Priority Flat Rate commercials were successful, now we need to advertise how much cheaper our Express Mail is compared to our competitors. We also need to look at new technology and find ways we can capture revenue with more online services, such as the electronic return receipts and online postage - advertise those services so customers know they're available. We can't rely on retail associates to inform customers about online services since customers inclined to use them don't come into the post office often. Banner ads or other online advertising may get their attention since that's where they spend their time - online.

Anonymous said...

Sure there may be less videos ordered by mail, but not everyone likes to view videos online. I certainly don't. I find it unconfortable sitting on the computer chair, when I could be lying down on the couch or it bed.

powellcatrose said...

books are the only thing i can think of

Anonymous said...

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for all businesses.
Hudson Station

Anonymous said...

I don't think everyone will be viewing movies on their computers or on internet-capable TVs for several years yet. Streaming content on computers can have delays and screens are small. Also not everyone will have the capability or money to effort a high-def, internet-capable TV to download movies. If you can afford the technology, what about those comsumers who've purchased blu-ray players, is that an internet-capable technology?

As far as USPS getting into new ventures, I think the idea of consumers being able to do their banks at post offices has great potential.

Anonymous said...

I have a great idea to get more revenue into the Post Office.
Take all of the Congressman AND Senators and any other political figure that uses the "Frank Mail" system and CHARGE THEM FOR IT. How much revenue would that bring in. It seems that they want to close post offices and not help the Postal Service in any way shape or form then start charging them for the service that don't want to help out.

Anonymous said...

Unless I'm mistaken, Congress each year passes an appropriations bill that reimburses USPS for Senate/Congress franking privilege.

Prasada Martala said...

Even though online viewing, streaming and other options like Movies on USB drives are becoming popular, DVDs are here to stay. But, with the popularity of Blu-ray technology, regular DVDs are becoming cheap for people to buy rather than rent them. Also quality of the movies is going to determine DVD watching rate.