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Gamefly wins appeal against Netflix

DeathscytheX

By DeathscytheX

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The US Court of Appeals has ruled that Netflix receives an unfair advantage from the US Postal service through preferential treatment and specially designated containers. Oddly enough, despite the money struggles the USPS has faced over the years, the high volume of mail Netflix traffics through the postal system is provided free of charge to the company.

The ruling stems form a multi-year battle lead by Gamefly, which claims it has had to spend millions in shipping adjustments because it is not provided with the same treatment that Netflix has been privileged to.

When Joystiq contacted Gamefly for comment, they responded stating:

"We are very pleased by the decision. GameFly has been trying for more than five years to get the Postal Service to take seriously its obligation not to discriminate unlawfully among its customers," said GameFly's CEO, Dave Hodess. "We trust that the Commission will take the court's decision to heart, and require the Postal Service to be compliant with the law by offering the same price and quality of service to all DVD rental companies. We have paid millions in excess postage fees over the past 10 years, and fair treatment by the USPS will enable us to keep our costs as low as possible for our customers."

http://www.joystiq.com/2013/01/11/court-rules-against-netflix-in-gamefly-postal-dispute/

Reuters story:

http://uk.reuters.com/article/2013/01/11/us-usa-netflix-idUKBRE90A0R820130111

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Sledgstone

Holy crap. Netflix doesn't get charged by USPS for all those dvd mailings!? Wow. That is ridiculous. I would definitely say thats an unfair advantage to gamefly and an unnecessary burden on tax payers. Seeing as Netflix charges separately for their dvd service, if they need to increase their fees as a result of this, it better not affect my cheap $8 a month streaming. :P

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DeathscytheX

Yeah this is shocking since the USPS has been crying about money woes over the past 3-4 years. If they don't want to shut down some post offices, they need to man up and charge netflix, becasue it would bring in a crap load of revenue for the struggling office. Snail Mail is pretty obsolete, they need to make their money where they can.

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