The move has the potential to save the company as much as 10% on shipping costs each year, according to analysts who worked out the possible cost savings to the company last year when the US Postal Service (USPS) was considering cancelling Saturday mail service. Ultimately, the USPS decided not to cancel Saturday mail service.
Apparently the company made the change without anyone noticing the change in service. It didn’t come to light until an online Netflix community noticed the change. This isn’t the first time Netflix has made a change without letting customers know about the change with an announcement.
For Netflix, the move makes sense. It’s much less expensive to have customers using their streaming service than the DVD service, and the DVD service has been shrinking as more customers choose streaming over snail-mail delivery. It would actually be a positive for the company if more people cancel the DVD service on this news, as long as they replace it with the streaming option and don’t quit the company completely. Still, this doesn’t likely forecast the end of the DVD business at Netflix. DVDs are still a profitable part of the business, and they will continue to be supported as long as it remains profitable.
Still, for those who have slow Internet access and rely on DVDs through the mail to watch their shows, the end of Saturday service can be frustrating. The move means there can be as much as a two day wait before a DVD goes out when an order is placed, and could mean a fewer number of DVDs arriving each month due to the extra day with no shipping.
(Photo courtesy of Michel Ngilen)