January 18, 2006 12:05 PM PST

Netflix goes postal

Netflix has appointed a former postmaster general as its chief operating officer to help bolster its mail-intensive business. Bill Henderson, the former postal chief, will replace Tom Dillon, who plans to retire in April, the online DVD rental service said Wednesday.

Netflix is working to distribute movies over the Internet in the future, but the U.S. Postal Service remains its sole delivery method today. The company ships more than 1 million DVDs a day from 37 distribution centers in the U.S. and touts one business-day delivery. Henderson will ensure "that our service levels are a linchpin of the Netflix customer experience," Netflix said in a statement. The company is currently settling a class action lawsuit that alleged it broke service level agreements, including one-day delivery.

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best hire?
Postmaster General as COO of Netflix? What? They couldn't find any buggy whip executives?

I really hoped that Netflix would be wise enough to avoid its obvious fate. Blockbuster's downfall was its inability to leave brick and mortar. Netflix's downfall will be its inability to leave DVDs and mail delivery.
Posted by bhageman (2 comments )
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Don't blame NetFlix
I'm sure the major hurdle in online delivery will be Hollywood and the MPAA.

Just think about how many NetFlix members make copies of all the movies they rent. I'm sure the MPAA would sell their soul to Satan to find out how many and who ;)
Posted by SeizeCTRL (1336 comments )
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On top of service levels.....
On top of service levels, how about getting dvd's to me that aren't broken, cracked or so scratched up that I can't play them. There's something to shoot for.
Posted by jbcahill (159 comments )
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Don't be a Jerk
Dude, don't be a jerk. Any disks arriving broken easily happened during the shipping.
Besides, if you receive a disk that is damaged, they'd ship you a replacement as soon as you post it.

Whenever you rent a product that has been used by others, there's a chance it may not be as good as opened and brand new.

I've used Netflix and Blockbuster.com, and I've experienced damaged and/or unplayable discs from both. But, I do understand that this can also happen with renting from your local store.
Posted by Dead Soulman (246 comments )
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"as many movies as you want"? BULL FECES
Netflix not honoring the promise "as many DVDs as you want" is FRAUD plain and simple. With 3-discs out at once, and returning movies the same day they're received one SHOULD be able to rent in excess of 25 movies/month. Whatever BULL FECES reason they offer up for not fulfilling this promise constitues at the very least BREACH OF CONTRACT. Do you smell another class action lawsuit?? I do.
Posted by SmithBarney (14 comments )
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