Lack of Saturday Mail Might Actually Help Netflix

Its postal bill will shrink, and people can't watch as many videos

By Newser Editors and Wire Services

Posted Feb 7, 2013 4:18 PM CST

(Newser) – The Postal Service plan to eliminate Saturday home delivery probably won't hurt Netflix, one of its biggest customers, observes AP. That's because Netflix's postal bill will shrink and subscribers probably won't watch as many DVDs while paying the same monthly fee. The story might have been different if Saturday mail delivery had been cut a few years ago, when DVDs were still Netflix's main business. Now the company boasts far more Internet video-streaming subscribers. Investors drove Netflix shares to a new 16-month high yesterday after the USPS announced its cuts. (Too rosy of a view? A Forbes columnist thinks the move might force Netflix to become an all-streaming company.)

A Netflix envelope containing a DVD is clipped onto a mailbox, in Springfield, Ill.
A Netflix envelope containing a DVD is clipped onto a mailbox, in Springfield, Ill.   (AP Photo/Seth Perlman)
FILE-In this Jan. 24, 2007 file photo, Netflix customer Carleen Ho holds up DVD movies, Talladega Nights and Pirates of the Caribbean' that she rented from Netflix, at her home in Palo Alto, Calif. Netflix is more popular among couch potatoes than investors a year after its polarizing decision to...
FILE-In this Jan. 24, 2007 file photo, Netflix customer Carleen Ho holds up DVD movies, "Talladega Nights" and "Pirates of the Caribbean' that she rented from Netflix, at her home in Palo Alto, Calif....   (AP Photo/Paul Sakuma, file)
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