Featured Articles

Analysts expect ARM to do well next year

Analysts expect ARM to do well next year

British chip designer ARM could cash in on the mobile industry's rush to transition to 64-bit operating systems and hardware.

More...
Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Huawei and Xiaomi outpace Lenovo, LG in smartphone market

Samsung has lost smartphone market share, ending the quarter on a low note and Xiaomi appears to be the big winner.

More...
Intel Broadwell 15W coming to CES

Intel Broadwell 15W coming to CES

It looks like Intel will be showing off its 14nm processors, codenames Broadwell, in a couple of weeks at CES 2015.

More...
Gainward GTX 980 Phantom reviewed

Gainward GTX 980 Phantom reviewed

Today we’ll be taking a closer look at the recently introduced Gainward GTX 980 4GB with the company’s trademark Phantom cooler.

More...
Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac ZBOX Sphere OI520 barebones vs Sphere Plus review

Zotac has been in the nettop and mini-PC space for more than four years now and it has managed to carve…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Wednesday, 14 October 2009 04:30

Battle continues between Gamefly and USPS

Written by David Stellmack

Image

Gamefly claims that others get special treatment

The ongoing legal tug-of-war between Gamefly and the U.S. Postal Service continues, with Gamefly producing more evidence that the USPS has been giving both Netflix and Blockbuster preferential treatment in the way that their mailers are processed.

While the USPS claims that Gamefly would get the same treatment if they would change their mailers, this suggests that not all mailers are treated equally. Gamefly is working hard to deal with this problem, as the company is trying to curb the number of broken discs (which continue to be a problem) for the mail-rental outfit, as they are spending as much as $50 to $60 for some titles that are sent out to members.

When discs are returned damaged, Gamefly is left with little choice other than to eat the cost; and this has presented a problem for the retailer, as the cost of many video games can be as much as double the cost of a Blu-ray disc, and as much as several times the cost of a single DVD (which, of course, eats into the company’s profitability and bottom line). Gamefly claims that Netflix, for example, is getting special treatment by the USPS, which is contributing to Netflix having a reduced breakage problem.

Gamefly has gone on to prove their point by introducing pictures of slots at USPS locations that were labeled as “Netflix Only,” and while the USPS claims that they have issued directives to have any such slots removed due to the potential legal ramifications, it seems that either someone missed some or didn’t listen to the directive. It will be interesting to see whether or not the USPS is able to explain this away.

Many analysts believe that Gamefly’s ability to win this case could have long-term ramifications on the mail-order rental business in the long term. If Gamefly were able to prove that the USPS is, in fact, contributing to a 1% breakage rate and that Gamefly’s packaging isn’t to blame, things could really get sticky for the USPS.

Last modified on Wednesday, 14 October 2009 10:39

David Stellmack

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments