December 6, 2007 5:34 AM PST

Post office drawback cited in dark forecast for Netflix

Post office drawback cited in dark forecast for Netflix
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A research note issued by Citigroup on Tuesday said 70 percent of Netflix return mailers must be sorted by hand.
The New York Times

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9 comments

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Objective Analysis?
This would actually mean something to me if there wasn't the....see I already said sell this and buy this and now I'm writing a report to back up my already made up mind.
Posted by ittesi259 (727 comments )
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What a dumb article!
This is so stupid it's not even funny. If the USPS decided to charge Netflix more does this guy not realize they would just redesign their mailers?

Aside from that I have never understood the block buster concept of by mail or in store, I get my DVDs from Netflix because I don't want to go to the store! And I have tried BBs service buy they really don't seem to have the selection that Netflix does, and their website seems much less intuitive.
Posted by pmfjoe (196 comments )
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Idiotic reccomendation
There may be other conditions that make it reasonable to recommend a sell of Netflix stock, but this has got to be one of the lamest I've ever heard. If you're going to recommend people sell Netflix stock, you'd better have a better reason than some possible surcharge that the post office may or may not attempt to implement at some point in the future.

The article points out that Netflix has gone through 40 to 50 iterations of their mailer -- if there's a problem, they'll just make another adjustment to solve the problem. Big deal. Little or no cost will be involved, and I cannot imagine how this would be any real threat to Netflix's bottom line.

Stock analysts can be idiots sometimes. Don't trust them blindly.
Posted by E B (267 comments )
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Why Wall Street Has Bear/Bull cycles
Because of idiotic assessments like this. Is it really that inconceivable that Netflix wouldn't simply change their mailers if the Post Office started charging them more?? Would it take them YEARS to change their mailer???? To change a stock rating on Netflix simply due to this is ridiculously stupid, and part of the reason why Wall Street always has Bear/Bull cycles. They just don't know how to think properly, and are always giving stupid advice to people, and then people follow it for some dumb reason or other.
Posted by BulletProofChen (30 comments )
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Did I Miss the Real Solution?
Netflix can fix their envelope and avoid the surcharge. Simple.
Posted by Renegade Knight (13748 comments )
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Not to mention...
Couldn't Netflix be credited with being one of the post office's saviors? Granted, it's not like Netflix could decide tomorrow to switch to UPS. But couldn't it be argued that Netflix generates massive amounts of business for the United States Postal Service?

I'd say "typical government... smile while sticking a shiv in your friends' gut" except that this is actually just a really poor piece of reporting regurgitated on News.com.

It's no wonder News.com doesn't offer RATE THIS ARTICLE links like MSNBC.COM does. They'd realize just how much garbage they were wrapping around their precious ads.
Posted by TV James (680 comments )
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BAD Mailer Design! Netflix DOOMED!
I feel as if it has become a bit too easy for people to flush "news" stories down the series of tubes that comprise the Internets.
Posted by Fat Drunk and Stupid (32 comments )
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Doubt it
This sounds like Citigroup has an interest in lowering Netflix shares while boosting Blockbuster value... I don't believe the problem is near as bad as stated...
Plus, if you read the WHOLE article, Netflix picks all of their returned DVD's up from the post office, saving the Post Office millions of dollars a year in delivery expenses.
I'm deleting this article for lack of any significance other than the possibility of scaring some hair brained wall street folks to possibly cause Netflix's stock to temporarily drop a few pennies.
Posted by bruceslog (112 comments )
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nice
nice to hear news about our Post office :)
nicssd- <a class="jive-link-external" href="http://www.anadir-sitio.com/internet/diseno-y-desarrollo-web/index4.php" target="_newWindow">http://www.anadir-sitio.com/internet/diseno-y-desarrollo-web/index4.php</a>
Posted by anadirsitio (4 comments )
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