US court rules that Netflix gets unfair delivery advantage

A US federal appeals court has ruled that Netflix has been getting preferential treatment for the delivery of its TV series and movies through the post.

The court agreed with video games delivery service Gamefly, which had complained that an extra charge was being levied by the US Postal Service for handling its deliveries because the material in question could not go through the automated sorting system.

Netflix’s deliveries also bypass the system, but it has not been subject to the extra charge.

The Postal Regulatory Commission must now come up with a fair system, the court ruled.

However, Netflix stock rose in the immediate aftermath of the ruling as the Commission said that the amount the Postal Service charges to deliver its DVDs will not be increased for the time being.

The Postal Service said the pricing structure it has for different clients were reasonable and fair and that it is studying the court’s decision. Netflix is the Service’s largest DVD delivery customer.