Post Office to lose more money thanks to NetflixPosted: August 10, 2010
As if the Post Office did not have enough problems, Netflix (NFLX) is bragging about the $600M it will transfer from its postal bills to Hollywood. Netflix announced today that it will stream films from Paramount Pictures, Lions Gate and MGM as a part of its online subscription service:
“Ted Sarandos, the chief content officer for Netflix, said he is essentially taking the “huge pile of money” that Netflix pays in postage for DVDs by mail — about $600 million this year — “and starting to pay it to the studios and networks.”” (“Netflix to Stream Films From Paramount, Lions Gate, MGM“)
Expect more upward pressure on the price of stamps to recover the ever-bleeding revenue streams at the Post Office.