Postal Service Cuts to Slow First-Class Mail – NYTimes.com.
In my Sep 20th post, I blogged about the overreaction of the market about the Netflix’s strategy of separating DVD delivery service from streaming service and putting them into two separate web services. I have to be the first to admit that I was too naive and too forgiving for not recognizing the consumer backlash. (and I have paid dearly for it since my options are not worthless!)
Having said that, I am also quit proud to have foreseen the devastating effect that a USPS collapse could have on Netflix and as is indicated in the above article, processing center closures would increase delivery time for Netflix and hence their push to make the streaming a bigger part of their business model. Given that now the debunked Blockbuster is owned by cash-rich hedge funds and this gives them a edge in competing with Netflix on DVD delivery, if high-speed intrernet becomes the thing of the future (particularly if Google has anything to say about it Google Will Build High-Speed Network in Kansas City, Kan. – NYTimes.com.), then Netflix should be rightfully applauded for foreseeing the tectonic shifts in their competitive landscape and have taken steps to avoid the disastrous implications of a USPS demise. I cannot say when, but I am going to build up my positions again as soon as I am convince a finicky market is finally catching up with the reality!
