University of Michigan Cellular and Molecular Biology graduate student

USPS to add 17% surcharge to Netflix DVD mailers

10 Dec 2007

The USPS is apparently sick of Netflix’s patented DVD mailers clogging its sorting machines and has decided to charge the DVD rental company 17 cents per envelope to cover the estimated $61.5 million extra processing costs over the next two years.

After an audit, the USPS concluded that 70% of the mailers “sustain damage, jam equipment and cause mis-sorts during automated processing”. The extra charge will cut Netflix’s average monthly income from $1.05 to just 35 cents per customer.

Dear Netflix, I really enjoy your service, but if you raise prices to cover costs instead of redesigning your envelopes, I will cancel my service.