Comments on: AskPablo: Is Netflix saving the world? http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/ Business, Better. Since 2005 Sat, 21 Nov 2009 18:33:24 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Marc http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/comment-page-1/#comment-14602 Marc Mon, 30 Jun 2008 20:13:09 +0000 http://www.triplepundit.com/wordpress/2007/02/askpablo-is-netflix-saving-the-world/#comment-14602 In an academic paper called "Comparative Energy, Environmental, and Economic Analysis of Traditional and E-commerce DVD Rental Networks" published in the <a href="http://www3.interscience.wiley.com/journal/120127325/abstract" rel="nofollow">Journal of Industrial Ecology</a> (Volume 11, Number 3, 2008), authors Deepak Sivaraman, Sergio Pacca, Kimberly Mueller, and Jessica Lin of the University of Michigan looked at the life cycle of the two systems. They included the energy/emissions to manufacture the plastic cases or envelopes, the energy/emissions to run a distribution center or retail outlet, the energy/emissions to get the DVD to a person's house, and many other steps in the process. Here's part of the abstract (my emphasis): <blockquote> This study is a comparative life-cycle assessment (LCA) of two competing digital video disc (DVD) rental networks: the e-commerce option, where the customer orders the movies online, and the traditional business option, where the customer goes to the rental store to rent a movie. The analytical framework proposed is for a customer living in the city of Ann Arbor, Michigan in the United States. The primary energy and environmental performance for both networks are presented using a multicriterion LCA. <b>The package selected by the traditional network is responsible for 67% of the difference in total energy consumption of the two alternatives. Results show that the e-commerce alternative consumed 33% less energy and emitted 40% less CO2 than the traditional option</b>.....The mode of transportation used by the customer in the traditional business model also affects global emissions and energy consumption. The customer walking to the store is by far the best option in the traditional network; however, the e-commerce option performed comparatively better despite all transportation modes tested.... </blockquote> The full article is available to subscribers only (like large academic libraries). In an academic paper called “Comparative Energy, Environmental, and Economic Analysis of Traditional and E-commerce DVD Rental Networks” published in the Journal of Industrial Ecology (Volume 11, Number 3, 2008), authors Deepak Sivaraman, Sergio Pacca, Kimberly Mueller, and Jessica Lin of the University of Michigan looked at the life cycle of the two systems. They included the energy/emissions to manufacture the plastic cases or envelopes, the energy/emissions to run a distribution center or retail outlet, the energy/emissions to get the DVD to a person’s house, and many other steps in the process.
Here’s part of the abstract (my emphasis):

This study is a comparative life-cycle assessment (LCA) of two competing digital video disc (DVD) rental networks: the e-commerce option, where the customer orders the movies online, and the traditional business option, where the customer goes to the rental store to rent a movie. The analytical framework proposed is for a customer living in the city of Ann Arbor, Michigan in the United States. The primary energy and environmental performance for both networks are presented using a multicriterion LCA. The package selected by the traditional network is responsible for 67% of the difference in total energy consumption of the two alternatives. Results show that the e-commerce alternative consumed 33% less energy and emitted 40% less CO2 than the traditional option…..The mode of transportation used by the customer in the traditional business model also affects global emissions and energy consumption. The customer walking to the store is by far the best option in the traditional network; however, the e-commerce option performed comparatively better despite all transportation modes tested….

The full article is available to subscribers only (like large academic libraries).

]]> By: Marc http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/comment-page-1/#comment-14601 Marc Wed, 30 May 2007 14:20:10 +0000 http://www.triplepundit.com/wordpress/2007/02/askpablo-is-netflix-saving-the-world/#comment-14601 Another potential environmental plus of Netflix might be their disc cases, which are Tyvek sleeves instead of a large plastic box. A typical DVD case for a movie has many times more plastic than is in the DVD itself. I imagine that they get their discs in some sort of bulk packs from the manufacturer, so plastic savings from box sets (like TV series) could be significant. Another potential environmental plus of Netflix might be their disc cases, which are Tyvek sleeves instead of a large plastic box. A typical DVD case for a movie has many times more plastic than is in the DVD itself. I imagine that they get their discs in some sort of bulk packs from the manufacturer, so plastic savings from box sets (like TV series) could be significant.

]]> By: Marc http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/comment-page-1/#comment-14600 Marc Mon, 26 Feb 2007 19:44:02 +0000 http://www.triplepundit.com/wordpress/2007/02/askpablo-is-netflix-saving-the-world/#comment-14600 Is the CO2 impact of the (one billion) envelopes worth considering? In a brick and mortar video store only one case is used for the life of the DVD (a case which is made of plastic and is many times heavier than the NetFlix envelope). I also wonder what fraction of NetFlix mail backs are delivered to the post office by automobile. Probably not many since there are no late fees (but then again, I know people who drive across town to simply fill up their gas tank at a station with slightly lower prices). Is the CO2 impact of the (one billion) envelopes worth considering? In a brick and mortar video store only one case is used for the life of the DVD (a case which is made of plastic and is many times heavier than the NetFlix envelope).
I also wonder what fraction of NetFlix mail backs are delivered to the post office by automobile. Probably not many since there are no late fees (but then again, I know people who drive across town to simply fill up their gas tank at a station with slightly lower prices).

]]> By: Anonymous http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/comment-page-1/#comment-14599 Anonymous Mon, 26 Feb 2007 15:28:40 +0000 http://www.triplepundit.com/wordpress/2007/02/askpablo-is-netflix-saving-the-world/#comment-14599 Don't forget that the "last mile" of the NetFlix delivery is done in conjunction with other things, the DVDs "carpool" for lack of a better word. The mail is being delivered to your house anyway, the NetFlix DVD simply rides along. Unless you get lots of mail and it causes extra trips for the mailman, there is lots of efficiency gains. It a similar concept as public transportation. The more it is used the more efficient it gets. Admittedly, some people who rent movies will do so while combining trips - like on the way home from work, and whatnot. But from my own personal experience, before NetFlix we used to make at least three trips to the video store a week. Now? None. So when you add in the benefits of the mail "carpooling" and then subtract the possible combined trip usage of the brick and mortar users - you are still looking at HUGE efficiency gains. Even conservatively we could double the calculations for NetFlix and halve the POV trips - and still be millions of times more efficient to use NetFlix. Don’t forget that the “last mile” of the NetFlix delivery is done in conjunction with other things, the DVDs “carpool” for lack of a better word.
The mail is being delivered to your house anyway, the NetFlix DVD simply rides along. Unless you get lots of mail and it causes extra trips for the mailman, there is lots of efficiency gains.
It a similar concept as public transportation. The more it is used the more efficient it gets.
Admittedly, some people who rent movies will do so while combining trips – like on the way home from work, and whatnot. But from my own personal experience, before NetFlix we used to make at least three trips to the video store a week. Now? None.
So when you add in the benefits of the mail “carpooling” and then subtract the possible combined trip usage of the brick and mortar users – you are still looking at HUGE efficiency gains.
Even conservatively we could double the calculations for NetFlix and halve the POV trips – and still be millions of times more efficient to use NetFlix.

]]> By: Tale Beppset http://www.triplepundit.com/2007/02/askpablo-is-netflix-saving-the-world/comment-page-1/#comment-14598 Tale Beppset Mon, 26 Feb 2007 12:38:48 +0000 http://www.triplepundit.com/wordpress/2007/02/askpablo-is-netflix-saving-the-world/#comment-14598 Just think of the difference when NetFlix goes to all-download format in a few years! 'course I walk to the video store since I live in a real neighborhood, so it's probably about the same for me! Just think of the difference when NetFlix goes to all-download format in a few years! ‘course I walk to the video store since I live in a real neighborhood, so it’s probably about the same for me!

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