Thursday, May 12, 2005

Will a postage increase hurt Netflix?

The Media Stock Blog reflects on the possibility of a postage rate increase and its affect on DVD rental by mail.
A postage rate increase impacts Netflix (NFLX) and Blockbuster (BBI), but which would it hurt more?

The United States Postal Service is requesting a two cent increase in the price of first class postage, from $0.37 to $0.39. If approved, this increase would negatively impact both Netflix (ticker: NFLX) and Blockbuster (ticker: BBI). But which one would it hurt more?
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The Media Stock Blog provides "News and analysis of Media and entertainment stocks. No buy or sell recommendations. Provided by Seeking Alpha for professional investors."

Has links and stories about investor resources, movie/box office data, fan sites, media companies, studios and distributors, theatre chains, broadcasters, etc.


  1. Doesn't Netflix and BB get a mass mailing discount? Would their price really go up by a full $0.02?

  2. There might be a proportionate increase in the mass-mailing rate.