Why the Internet Isn't the Death of the Post Office

By JAMES FALLOWS
September 4, 2005

MILLIONS of people now rent their movies the Netflix way. They fill 
out a wish list from the 50,000 titles on the company's Web site and 
receive the first few DVD's in the mail; when they mail each one 
back, the next one on the list is sent.

The Netflix model has been exhaustively analyzed for its disruptive, 
new-economy implications. What will it mean for video stores like 
Blockbuster, which has, in fact, started a similar service? What will 
it mean for movie studios and theaters? What does it show about "long 
tail" businesses - ones that amalgamate many niche markets, like 
those for Dutch movies or classic musicals, into a single large 
audience?

But one other major implication has barely been mentioned: what this 
and similar Internet-based businesses mean for that stalwart of the 
old economy, the United States Postal Service.

Every day, some two million Netflix envelopes come and go as 
first-class mail. They are joined by millions of other shipments from 
online pharmacies, eBay vendors, Amazon.com and other businesses that 
did not exist before the Internet.

The eclipse of "snail mail" in the age of instant electronic 
communication has been predicted at least as often as the coming of 
the paperless office. But the consumption of paper keeps rising. (It 
has roughly doubled since 1980, with less use of newsprint and much 
more of ordinary office paper.) And so, with some nuances and 
internal changes, does the flow of material carried by mail. On 
average, an American household receives twice as many pieces of mail 
a day as it did in the 1970's.

...

http://www.nytimes.com/2005/09/04/technology/04techno.html?ex=1283486400&en=03a3c97e10d5235b&ei=5090


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