GameFly Scores In Longstanding DVD Mailing Complaint
An anonymous reader writes "GamePolitics reports that the Postal Regulatory Commission has ordered [PDF] the U.S. Postal Service to equalize the rates paid by mailers who send round trip DVDs, and concluding (sort of) a dispute that has been underway for more than four years. The new postage rates take effect on September 30th. Some mailers, prominantly Netflix, send their round-trip movie DVDs as 'letters,' but GameFly's gaming disks are sent in slightly bigger envelopes as 'flats' to avoid breakage, and so GameFly has paid a much higher postage rate. GameFly argued that this was unfair discriminatory treatment because USPS was providing special hand-sorting treatment for Netflix disks without charging Netflix for the extra handling. But now there's a new twist: the Postal Service wants to reclassify DVD mailing [PDF] as a competitive product, where the prices would not be limited by the rate of inflation, because it says that mailed DVDs compete with the internet, streaming services, and kiosks such as Redbox. The regulatory agency is accepting responses [PDF] from interested persons until September 11th to the Postal Service's latest comments on its request [PDF]."
And regular mail doesn't compete with Email at all right?
sounds like in winning gamefly may have put the nail in their profit margin. Instead of adopting the Netflix mailer and accepting breakage as part of doing business everyone will now have to pay much much higher mailing. Ironically, this also will mean that dvd mailing services will probably start to die which hurts the USPS too.
if you pack your stuff to survive the mail/UPS/FumblesRus, then it will be bulkier and should cost more.
another blow to common sense. can't they argue they have added value and get it on the back end?
if this is supposed to be a new economy, how come they still want my old fashioned money?
The postage rates should be based on the size and weight of the package, the origin and destination, and nothing else.
Give me Classic Slashdot or give me death!
So, the Postal Service says DVD mailing competes with Internet streaming and ... that means they want to charge *more*?
"Competitive." You keep using that word. I do not think it means what you think it means.
[Sir Garlon] is the marvellest knight that is now living, for he destroyeth many good knights, for he goeth invisible.
Why this need be regulated? Just pay people to send your packages. If they are charging too much then find someone who is doing it for cheaper. If nobody is doing it for cheaper, and it is possible to do it for cheaper, then someone will start doing it because there will be profit motive.
Canada Post has seen drastic drops in volume. How much longer before federal governments just pull the plug and let postal services die and be replaced by private business. What reasons are there for federally funded postal services to be continued?
Netflix develops a mailer that gives them an advantage, so instead of adopting a better model GameFly sues and then screws it up for everyone. I hope GameFly is bankrupt within a year.
Hard not to think of these when Gamefly comes up: http://ibrill.tumblr.com/post/22589153484/all-the-video-games-peteholmez-mentioned-in-his
Haven't quite mastered Lego Human Centipede yet.
It should be based on weight and distance, what business is it of the USPS what is in there?
As long as it is not hazardous.
Will they charge more for new games, than for movies that are out of copyright?
Will they enforce copyrights or Pr0n restrictions?
Sorry, but no. There is no requirement for letter-class mail to be paper nor be bendable.
At least no requiment on the sender. The USPS may want it that way for THEIR OWN convenience.
...because it says that mailed DVDs compete with the internet, streaming services, and kiosks such as Redbox.
If the DVD isn't available (legally) at a streaming service, a (legal) mailed DVD isn't really competing with the internet, is it?
How are the USPS planning on checking whether all those mailed DVDs are available for streaming or not?
I get my movies through a tube. That's right, a Senator Ted Stevens reference, Altavista that biatch. It's about as current and relevant as a DVD mailer company complaining about the cost of postage stamps for hand delivered snail mail.
I haven't thought of anything clever to put here, but then again most of you haven't either.
From a Huffington Post article on the subject last year:
"Much of the red ink in 2012 was due to mounting mandatory costs for future retiree health benefits, which made up $11.1 billion of the losses. Without that and other related labor expenses, the mail agency sustained an operating loss of $2.4 billion."
So pension issues aside, the USPS was BILLIONS in debt in 2012 anyway. Potentially fixable? Sure ... but let's not pretend it was a well managed and profitable business until Congress came along with the crazy pension idea. That was just an attempt to drown it for good, which hasn't quite worked yet.
The privately owned USPS deserve what ever ill comes from Congress. They put Lysander Spooner's competing service out of business by getting their friend's in Congress to make it illegal for any one else to deliver "regular mail". The USPS asked Congress to step into their business, and ruined other people's business as a result. What goes around, comes around.
Yes! Let's jump on board soon to be obsolete technology!
Uh.... so let me get this straight.... it sounds like the postal service is explicitly trying to kill off its own customers.
Where is the logic in that?
(Spudley Strikes Again!)
Breakage? BREAKAGE? Snort. Have you ever tried to break a DVD? I have. It wouldn't play and I got mad at it, OK? I gripped it with two pairs of heavy duty pliers and twisted and tortured it. I bent it 90 degrees and it didn't break. It may have been ruined by me applying force comparable to driving a car over it with rocks underneath, but it didn't break. I finally succeeded and came within a hair's breadth of killing myself with razor sharp fragments. It took almost superhuman force. I could only manage it by pure rage.
Granted, it's a moot point. It's pretty damn easy to scratch the damn things so that they are ruined. But a larger envelope doesn't do crap to prevent that. If the P.O. can gouge through paper, it can just as well gouge through sturdier cardboard - and it often does.
If GameFly is sending "in slightly bigger envelopes", why shouldn't they have to pay more?!
If they were "essentially" the same as Netflix's packages, then yes, they should presumably pay the same rate (excepting for huge volume discounts perhaps).
When they can get me a Game to Vermont in under a week, I might do business with GameFly again, as of now almost 14 days turn around, they are hardly competitive. Netflix can get a DVD to me in 2 days.
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Back when media like movies were heavier than a CD/DVD, the Post Office offered a service called Media Mail, that was a reduced rate I think originally for library-type materials, perhaps for the promotion of education or such, and I sold many movies on eBay and shipped them this way. Video game cartridges would never be allowed under this, despite obviously being media, and I would always get turned down and be forced to ship video games with regular postal rates.
When video games eventually turned into actual digital video discs, literally written onto a DVD despite not being a "DVD" in the sense of watchable on a DVD player, I also got turned down from mailing them as Media Mail because I didn't say "DVD" in the sense of a movie, so I just started saying DVD instead of video game, because the actual media itself is the same disc with different media on it.
For some reason the USPS insists on differentiating between movie DVDs and video game DVDs. I soon discovered however, that it was actually cheaper and faster to mail such a lightweight disc First Class instead of the typically-slower Media Mail way, and the distinction became largely irrelevant for me, but it appears the USPS has still not learned anything since those days!