Could Netflix Save the USPS by Delivering Movies on Saturdays?

Netflix has led a charmed life. What began as a risky business venture whose profit model was founded on cost-effective distribution, as opposed to rental fees and sales of used videos and concessions, has managed to overtake its chief competitors Blockbuster and Hollywood Video and alter the video rental industry at large in only a few short years.



Now, after witnessing a 45% profit increase in 2008 and refining its video streaming service that first premiered in 2007, Netflix has announced plans to extend its DVD rental distribution to 6 days a week, Monday-Saturday, adding upon its previous Monday-Friday delivery cycle it has previously used.
There is still no word as to which or how many distribution facilities will be participating in these 6 day distribution “tests,” but with speculation over the USPS’ move to a 5-day work week, it might not matter anyway.

Yet, given the success of Netflix and, moreover, its increasing importance to the USPS, could this possibly be a compromise of sorts between one private enterprise and a semi-privatized government institution? A new deal that is favorable to both entities, capitalizing on one’s success and hoping to assuage another’s shortcomings?

It seems more likely that, given the budget deficit the USPS has been operating at since Q2 2008, which is only expected to increase through the fiscal year, USPS is attempting to shore up as much business as possible in order to avoid the lay-offs, cut hours and other personnel obstacles that abbreviating the work week could create. Though ideas regarding the abbreviated work week don’t necessarily point to a delivery-free Saturday, cutting slower mail days like Tuesday from the work week might not be feasible from an operational standpoint.

While this is still only speculation, hopefully Netflix isn’t the last service we hear of striking similar deals with the USPS. It might not save or even delay the USPS from making drastic cuts in operational hours, but at least it’s a start.

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