Alan Smithee

GameFly’s Still Pissed at USPS and Redbox

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The popular games-by-mail rental service said recently that if the USPS would give their company the same rate as they give Netflix, their profits would double.

Nevermind that there are a few things that Netflix does a bit different than you guys currently do with your service.

First, there’s the numbers game. More people use Netflix than your service I’m sure and by this reasoning, they obviously have more distribution locations throughout the United States.

Second, a Netflix envelope is easier to spot when you’re a postal employee. I’m not saying that they’re cheaper because of this, but obviously a USPS employee can spot a Netflix envelope from across a room while your GameFly envelopes are a bit more subdued. I understand that this is mainly as a defense mechanism against people snatching mail based on the appearance, knowing that there’s a $60 game within.

Finally, and what should be the death knell for this whole bitchfest that GameFly has been going on and on about is that Netflix sends a paper envelope with an almost paper-like sleeve that carries the disc. GameFly sends theirs out in a cardboard sleeve to keep damage to their product to a minimum.

Of course extra weight adds to shipping costs! But I can’t really blame them for being pissed off, Netflix is charged approximately $0.44 for each envelope shipped and a GameFly disc costs about $1.05 each to ship.

You can read the entire lengthy story over at Ars Technica as to why they’re complaining, but in the long run it boils down to stagnating member growth and increased costs of operation.

It just makes me think that their change should start from within before crying foul to other successful businesses, and let’s face it, the USPS can use every penny that comes its way.

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