Netflix Indifferent to Nixed Saturday Mail Delivery6 Feb, 2013 By: Erik Gruenwedel
The U.S. Postal Service’s Feb. 6 announcement that it will suspend Saturday residential mail delivery beginning Aug. 5 to save $2 billion annually in costs barely elicited a yawn from Netflix — the letter carrier’s largest commercial customer.
The Postal Service has delivered residential mail on Saturdays for 150 years.
Netflix spokesperson Joris Evers, in an email, said the by-mail-disc-pioneer-turned-subscription-video-on-demand leader had no direct comment. Netflix, which has more than 8 million subscribers who rent and/or also stream content, can typically deliver a disc within one business day.
“You should know that we … are for a healthy Postal Service,” Evers wrote.
Wedbush Securities’ Michael Pachter doesn’t expect the news to result in mass Netflix subscriber cancellations.
“Most users don’t wait till Friday morning to return discs. Most return discs early in the week or on Saturday,” Pachter wrote in an email.
Eric Wold, analyst with B. Riley Caris in Los Angeles, said the news could be a slight positive to Redbox, whose consumers who do not have to deal with mailing discs.
“I would not expect this to be an incremental traffic driver for Redbox, but it’s definitely more of a potential positive to Redbox than a negative to Netflix,” Wold wrote in an email.