Friday, April 22, 2011

Postal Regulatory Commission rules for GameFly: mailing DVDs to be cheaper for all

GameFly has been involved in a bitter dispute with the US Postal Service over the cost of mailing games to customers, with the company claiming that Netflix has received better service and better prices for disc mailing. Both Netflix and the Postal Service fired back with detailed reasons for the difference in price, but the Postal Regulatory Commission didn't buy it, and has ordered the USPS to enact new policies for DVD mailers across the board.

This is great news for GameFly, as the company says it is losing $730,000 per month on high postal fees, but it will also help every company that sends discs through the mail. The entire case seemed to boil down to two details: both companies were mailing the same type of product, and Gamefly was willing to change its mailers if offered the same considerations as Netflix.

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