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Maybe I am stupid but why doesn't Gamefly just farm out the fulfillment to Netflix?

How much would it cost to go to Netflix and say "Hey we know you don't want to get into the game business but you already have this huge processing and distribution system for discs. Can we pay you to ship and receive our discs?"

Seems like Netflix should already offer this to smaller outfits that want to address niche DVD markets. This would be very similar to how Amazon lets vendors use their massive distribution and shipping facilities to warehouse and fulfill their products. It's called "Shipped by Amazon."

Gamefly is wasting time and money trying to create their own fulfillment system. They would probably spend less even paying Netflix to stock and ship their games.


"This amount represents more than 100% of GameFly's monthly net income in 2011."

Charge more then, dumbasses. You can't blame Netflix or even the USPS for you own fucking failure at running a business.


^^ Haha, exactly.

Also: When this story first popped up 2 years ago, Gamefly asserted that their mailers were no different from Netflix's so they should pay the same rate. But if they're not brightly colored AND they have cardboard to protect the discs then that's not true, is it?


Sounds like Gamefly's business model is terribly flawed. Converting from a mail-based business to a kiosk-based business might be the long-term best solution for them.


Their envelopes weigh more than an ounce - it doesn't seem like their complaint has any merit.

It also doesn't seem like it'd take much effort for the PRC to say 'sorry, but you have to pay the two ounce rate.'


PS. PRC is often used as an abbreviation for Peoples Republic of China. I was more than a little confused when I first read the headline.


I read this more as "Make a decision now, because more evidence and thought will only hurt our case."
Gamefly has said in other places that they're breakage tolerence is much lower than NF ($50/game vs. $10 for a DVD). Which is why they put the insert in there. The idea that NF is getting speciial treatment is a bit odd.
But to that point. NF ships tons of DVDs if the Post office wants to give them special treatment in exchange for keeping business, more power to them.


Why would a company that is going bankrupt (the postal service) rule in favor of losing revenue?


What an apples to oranges complaint. The complaint really makes GameFly look like they have no idea what they are doing.


GameFly should offer streaming rentals for PC & consoles. Maybe like On-Live or downloadable. As well as disc. Kiosks would be cool too.

In fact teaming with On-Live & Redbox might be a good idea....

As for the mailing issue. Well they should use a paper mailer like Netflix. I have gotten....Uh....I think 1 bad disc? In my couple years of service, so paper is fine.

Plus they should get the data for the games and burn the discs themselves if they are worried about the cost of damaged games. I'm sure they could purchase the tools to do this and get permission from the game companies they get rentals from....

Wouldn't that be cheaper? Or possible?


I'm sure they know that their situation isn't exactly like Netflix, but when that much money is at stake it's worth a try.

Anyway, I thought I remembered reading that Netflix has their own drivers that visit post offices to pick up discs.


Why can't GF get a better deal on games than $50? That makes no sense to me. I've worked at a Netflix shipping facility as a day job a few times and the manager of that facility told me that Netflix pays $2 or $3 per DVD by purchasing them 50,000 at a time. That might be why they're not nearly as concerned about theft as Gamefly. I live in a pretty high crime neighborhood, but I've never had an outgoing Netflix envelope stolen out of the mailbox.


I hope Gamefly succeeds or somebody else takes their place because by providing a great movie service, Netflix has in turn taken out brick and mortar stores that did video games as well and now there isn't really a good option for renting games. I keep trying Gamefly every 4-5 months but it's the same problems as always- long wait times, 2-3 day shipping and return times. I miss my Blockbuster all-access game pass.

The Dude

A lot of you are missing the point. Gamefly used to mail its games the same way Netflix does now. Only, the Gamefly mailers were not pulled out by hand--they were run through the sorting machines breaking the contents. Thus the move to the larger mailer with the cardboard. All they want is to be treated the same as Netflix, pay letter rate and have mail hand sorted.


I've mailed CDs much like Netflix does now, and never have had an issue with it. I pay either the one or two ounce rate, depending on weight, plus an additional 17 cent fee since it isn't machine sortable.

The few discs I've sent have made it perfectly fine, even being wrapped in nothing more than a paper sleeve and a piece or two of paper surrounding it.

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