Please create an account to participate in the Slashdot moderation system

 



Forgot your password?
typodupeerror
×

Evolution of the Netflix Envelope 238

An anonymous reader wrote to mention an article over on CNN Money. They go into some detail on what seven years of tinkering has done for the simple red Netflix envelope. From the article: "Years of experimentation went into creating the perfect DVD envelope. In 1999, Netflix started out with a heavy cardboard mailer. With only 100,000 subscribers, costs weren't a concern yet. Then the company experimented with plastic envelopes, which proved not to be recyclable, and padding, which added too much to postage costs. Both top-loading and side-loading envelopes made an appearance."
This discussion has been archived. No new comments can be posted.

Evolution of the Netflix Envelope

Comments Filter:
  • by dteichman2 ( 841599 ) on Friday April 21, 2006 @09:47PM (#15178707) Homepage
    It's a pain when you get your movie and you have to be careful to avoid damanging the return envelope while you open it.

    Plus, I can't send it back with a different movie because we only get one at a time.
  • Re:Neat to see. (Score:5, Informative)

    by cfulmer ( 3166 ) on Friday April 21, 2006 @09:49PM (#15178717) Journal
    This is an easy one: square envelopes cost more [usps.gov].
  • Re:Neat to see. (Score:5, Informative)

    by britneys 9th husband ( 741556 ) on Friday April 21, 2006 @09:50PM (#15178719) Homepage Journal
    The post office charges more for square envelopes.

    From http://postcalc.usps.gov/mailpiecedimensions.asp [usps.gov]

    First-Class Letter Nonmachinable Surcharge:

    First-Class envelopes weighing 1 ounce or less require an additional $0.13 nonmachinable surcharge if any one of the following apply:

            * It is a square letter
            * It contains very rigid items such as wood or metal
            * It has clasps, string, buttons, or similar closure devices
            * It has an address parallel to the shorter dimension of the letter
            * It contains items such as pens that cause the surface to be uneven
            * The length divided by height is less than 1.3 or more than 2.5 (calculate this below)
  • by radish ( 98371 ) on Friday April 21, 2006 @09:51PM (#15178720) Homepage
    Actually the USPS do offer a service where they scan return envelopes at your local Post Office. It's used by a number of companies including Netflix to speed up return times.
  • by Derivin ( 635919 ) on Friday April 21, 2006 @10:15PM (#15178803)
    Sorry, but your calculations are a little off. It says 1.4Mil per day for 4.2Mil subscribers.
    You are correct in that it works out to "3", but your units are wrong.
    It is 1 movie per subscriber every 3 days which is in keeping with my personal use.

    12.6Mil per day would be 3 movies per subscriber.
  • by hazem ( 472289 ) on Friday April 21, 2006 @10:21PM (#15178822) Journal
    My guess is that they are saying that at on any given day, 1.4 million DVDs are "in-transit".

    If you ship 10 DVDs on one day, and it takes 3 days to get to the destination, you would still have 10 DVDs in-transit per day.

    It sounds funny, knowing what's "in-transit" is an important inventory metric.

    Plus, they might be counting the return trips as well.

    It's impossible to know, however, without having the underlying data.
  • Re:Careful! (Score:3, Informative)

    by Scooby Snacks ( 516469 ) on Friday April 21, 2006 @10:56PM (#15178933)
    I know you're just being funny, but Netflix doesn't carry those kinds of movies.
  • by mlantz7 ( 953704 ) on Friday April 21, 2006 @10:57PM (#15178939)
    While it is interesting to see how the envelope has changed over the years, I find it more interesting to see some new competitors in the marketplace who are really innovating...

    Imagine being able to go online and request any movie you want, and be watching it within the hour. (OK, other than using BitTorrent!). You just go down to the local Redbox kiosk and pick it up within the hour.

    This is on the way, and you can't beat the current prices ($1/day) for new releases. And, there is a website with Redbox codes [insideredbox.com] where you can get A LOT of free rentals, too.

    So, if you are in one of 10 major metros [mappoint.net] you can get this today.

    So, forget the red envelope, and get ready for the Redbox.

  • by Xerotope ( 777662 ) on Friday April 21, 2006 @11:07PM (#15178954)
    If they don't properly affix the sticker that seals the flap, the USPS sorting machines can mangle them pretty good.

    In fact, just today I received only the address flap in the mail. It must've been ripped off from the envelope (who knows what happened to the dvd), and those persistant bastards at the post office delivered just a red flap.

    I've also received a disk that had the flap partially torn off. It took two days longer than normal, and the USPS had placed it in a "Sorry we damaged your mail" envelope.

    So not quite the perfect solution, but still pretty good.
  • by Anonymous Coward on Friday April 21, 2006 @11:16PM (#15178987)
    As a long-time netflix user I think the paper envelope they have now is damn near perfect. It's dirt cheap, but keeps the DVD safe. It's recycleable too. It takes 5 seconds to put the DVD in securely and be ready to mail it.

    I don't think their so perfect. I work for the post office and have to handle the damn things. I'm not the guy that stuffs your mailbox, I run the sorting machines. (about 95% of your letters are sorted by machine). Problem is, the DVDs jam the machine because they don't flex (enough). They need to be run on a special machine used to sort magazines. I regularly see their ripped envelopes and occasionally broken DVDs from the letter sorters, where they are mixed in with normal letters and difficult to see and remove. The envelope is too flimsy, and the adhesive sticker to "seal" it is a bit of a problem. It sometimes sticks to the adjacent mailpiece. You are seeing the result of "engineering" something to just barely meet requirements, to save a penny or two.

    The Blockbuster mailer is great from my point of view. Envelope is sturdy, and fits and protects it's contents well. The NetFlix mailer has the floppy empty "tail" because it is rectangular rather than square. Difficult to handle to load into the machines. This deficiency requires more time to handle the NetFlix, so it costs more to process. But that's OK, 'cause you're paying for it by subsidizing it with your first class postage on other mail. You do realize you subsidize the discounted postage bulk mail pays with your full rate first class postage, right?
  • What Pure Bullshit (Score:3, Informative)

    by evilviper ( 135110 ) on Friday April 21, 2006 @11:57PM (#15179093) Journal
    They make it seem like this was an advanced and complex problem.

    Every ounce of weight in the mailer added to postage costs

    Weight (within reason) shouldn't be an issue. You can send letters up to 1 ounce, for base USPS postage. Since a DVD only weighs half that, and they only send one at a time, they could have very heavy envelopes before it would cost them any extra money. I think it would be a good idea for them to send 2 at a time (and in an envelope 2/3rds as large) which would make this more of an issue, but that's another story.

    but if the mailer was too flimsy, DVDs broke in the mail.

    DVDs will occasionally break in the mail, no matter what. An envelope would have to be incredibly strong to even slightly reduce the incidents of damage. So, it's the DVD's own strength and flexibility that keeps them from breaking, which has NOTHING to do with the mailer. The envelope is just scratch-protection...
  • by Anonymous Coward on Saturday April 22, 2006 @01:49AM (#15179343)
    Don't forget that netflix also has to pay for each envelope that it sends, so reducing the weight of the envelope (which means a reduction in materials) will produce a significant savings, even if the cost to ship the DVD remains the same.
  • by Kadin2048 ( 468275 ) <slashdot.kadin@xox y . net> on Saturday April 22, 2006 @02:28AM (#15179429) Homepage Journal
    You do realize you subsidize the discounted postage bulk mail pays with your full rate first class postage, right?

    Funny, I was always told the exact opposite. Namely, that the discounts given to presorted bulk mail were actually less than the labor saved by the Post Office as a result of the presorting, thus most "junk mail" and stuff shipped at the bulk rate is more profitable, on a piece-by-piece basis, than individual First Class letters. So that really it's all those catalogs and crap that are subsidizing the Post Office's ability to deliver your letter to Grandma for 39 cents.

    If what you're saying is true, and it's the other way around, then what I've basically been told my entire life about the Post Office is wrong.

    I just ran some quick Google searches and I'm not the only person under this impression:
    "Most people are unaware that bulk mailing is highly profitable for the U.S. Postal Service and it subsidizes first class mail." http://www.lawmall.com/abuse/abe-mail.html [lawmall.com]
    "Bulk mail thereby subsidizes low cost stamps for letter, magazine, and book mailing." http://en.wikipedia.org/wiki/Direct_mail#Legislati on [wikipedia.org]
    &c., etc.
  • by ComputerSlicer23 ( 516509 ) on Saturday April 22, 2006 @02:40AM (#15179450)
    But that's OK, 'cause you're paying for it by subsidizing it with your first class postage on other mail. You do realize you subsidize the discounted postage bulk mail pays with your full rate first class postage, right?
    That's silly... It's actually the other way around... Bulk mail is subsidizing first class mail, not the other way around bub. The bulk mailers get a lower rate because they come pre-sorted, and generally with bar codes on them or other machine readable notations to facilitate the delivery. They cover the costs of driving past everyone's door. The larger the number of pieces of mail, the more letters the delivery costs are amortized over. If bulk mailers stopped sending mail, there'd be a huge spike in the price of stamps. For those of us keeping score, that means they are good for us, not bad. Thanks, for playing...

    Kirby

  • by Anonymous Coward on Saturday April 22, 2006 @04:38AM (#15179618)
    Close ... here's what the USPS actually does, and how that fits in with what the previous posters report.

    There are two possible barcodes on the mailer that are of interest to the USPS.

    The first, and most common, is the barcode immediately below the address area. This barcode is a routing code derived from the address, and is used only by USPS.

    The second, and optional (you pay USPS for it) barcode will appear immediately above the address area. This barcode is used to do 'package tracking' of a crude sort. It contains a code identifying the USPS customer (netflix, for example), as well as some arbitrary data supplied by netflix - probably including a customer id and 'movie id' of some sort. This barcode is scanned when the envelope arrives at the USPS, and the scanned data is transmitted to the USPS customer who printed the labels. The customer then knows that 'the check is in the mail'. The most common users of this are credit card companies and utilities (gas, electric, cable).

    Beyond the barcodes, there is another USPS mechanism at work, which your 'netflix delivery guys' allude to. That is, for a fee, the USPS will 'aggregate' mail for a customer in a largely internal way. For example, the USPS allows you to set up 'virtual' addresses almost anywhere. Any number of 'virtual' addresses can be linked to one or more 'real' addresses. So, in the netflix case, they might have one regional processing center, and several dozen 'return addresses' for the surrounding area. The USPS then internally aggregates the mail at each 'virtual' address, and delivers it to the linked 'real' address. This can both significantly reduce the amount of time that it takes USPS to process a piece of mail, but also reduces the number of actual processing centers that Netflix has to operate in order to maintain the desired level of service.

    And no, I don't and never have worked for Netflix .. but I do know their business area well.
  • by MisterOblivious ( 948127 ) on Saturday April 22, 2006 @05:01AM (#15179646)
    I imagine they use the USPS Confirm [usps.com] service as does Gamefly, who won an award [popcultureshock.com] for developing the system along with the USPS

You knew the job was dangerous when you took it, Fred. -- Superchicken

Working...