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Comments

Aron

This is about .50$ a customer per month. Who knows what the market will look like then, but it affects all online competitors about equally so it's pretty easy to pass on.

Whisperings I see indicate that store rentals will also be going up in price, especially if Hollywood and Blockbuster merge.

It does somewhat accelerate the inflection point where digital delivery is cheaper, at least while DVD rather then HD-DVD remains the primary media.

lawilson

I don't see how Blockbuster can maintain their stores for another year, especially with the online rental business. I know store managers hate this online fad, because they are losing money big time, yet they have to promote it. In effect, they are telling their customers to stay at home, don't come in, and we'll send the movies to you. They lose money on the snacks and other items that make a profit. I feel bad for the stores, and I hope they still get some kind of kickback for promoting the online biz.

a

I find it interesting that Netlflix does not bother to do this on the DVD's they mail out. They often mail me two (or more) in a given day, each in their own postage eating envelope.

erik

The rate for consumer first-class mail may be going up 4 cents, but this doesn't say anything about the rate for big commercial mailers like NetFlix. Bulk mail is the USPS's bread and butter and usually those rates don't go up anywhere near as much as the first-class rate.

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