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Netflix has something new in common with Redbox: each has been named as a defendant in separate class action lawsuits. Netflix’s suit, which has just been granted class action status by a federal judge, is being brought against it by a group of subscriber who are alleging antitrust practices.

The suit, which was originally filed against Netflix in 2009, alleges that “Netflix and Walmart.com colluded to control the DVD market when the latter abandoned the online rental business”, according to Bloomberg.

Netflix allegedly took over Walmart’s list of subscribers while agreeing to stay out of the retail disc business, thus causing millions of subscribers to pay “supracompetitive prices.”

Walmart has reportedly settled with the plaintiffs already, while Netflix plans to continue to fight the suit, which will reach trial next year.

Lawsuits are part and parcel with being a successful company—do you think that this one has any merit? Did these two giants, one retail and one rental, collude to dominate the DVD business?

(via Home Media Magazine)

19 Responses to “Class Action Lawsuit Filed Against Netflix”

  1. Member [Join Now]
    steve-t

    now we know why they raised prices they want us as customers to fight there lawsuit with the extra money they charged us

    • Visitor [Join Now]
      Jim [visitor]

      They raised thier price way to high for the bigger packages… I can see a $2.00 Increase from thier 3 at a time package but for the 4 at a time it Jumps from $19.99 for three to $27.99 that is way to much money for one extra one… I can go rent it from the store cheaper….. I had a large package each month for year, I downgrade back to three, I refuse to pay netflix outrages prices, and half the rentals I want to see I have to wait and extra 28 days… Its Like paying for a Peporoni and sasauage pizza and only getting Peporoni… It aint happining with me…. Netflix customer service is poor also anymore……

      • Member [Join Now]
        steve-t

        i changed my plan to the 1 out at a time plan a long time ago because of the 28 day delay. i called netflix and the cs rep told me the reason for the price going up was because some of the customers wanted a streaming only package. let them pay for the price increase then.i wil not go to the streaming plan right now. they newer movies and tv shows for me to change to streaming only

        • Visitor [Join Now]
          Jim [visitor]

          Steve,

          I had netflix since 2003, from then I went from 3 to 4, to 5 to six out at a time, the price was $35 which was reasonable, and at that time, thier was no 28 day release window so I was getting what I wanted ‘What I paid for.’ Now Since the 28 day window I want to watch newer movies that I want to see now, not 28 days later… Netflix in agreement with the 28 day hold with these studios, is they get the same amount of DVD’s for half the cost, and more rights to stream some of the other movies. So Netflix is saving, but they want to make more money my plan went from $35.99 to almost $50 after taxes. Sorry But I dont see spending that type of money. So I downgraded to 3 at a time, for $20 is a lil more resonably price for now. If it gets any worser where I can get what I want I will step down to streaming only. I been taking advantage of the instant streaming more and more now…. Block Buster Express and Redbox are 50/50 with the 28 day window, what I mean is they have some of the new releases from day one and some they dont. Since I downgraded my netflix my money spends elseware, I will go elseware to get my new movies when I want to see. However Steve Sooner or later netflix will be out of the DVD by mail business and be a Instant Streaming only company…

          • Member [Join Now]
            fritzsmom

            I know this much about Netflix customer service: it SUX! They are rude as hell, ill-informed about anything and have to fight like crazy for the credit the customer deserves if netflix makes a mistake or if the customer wants to change plans or unsubscribe. Screw them! Netflix: Get some people in there who know what they are doing when dealing with customers, the public, the ones who are paying your salary Mr. Big Fat Cat CEO!!

          • Visitor [Join Now]
            JustJeff [visitor]

            I think there are some blockbuster shareholders on here wanting to put a black mark on Netflix ;)
            I for one find it funny that anyone can really make a big deal complaining about 4-5 movie rental rates. I rarely find enough good movies available on a monthly basis to even rent more than one at a time. Three movies in one week and I think I have exhausted the new release options. Do you actually have a life outside the living room? Do you really need to pay more than $25 for the mindless drivel that is available today on DVD? I am glad Netflix is fighting this suit.

          • Member [Join Now]
            steve-t

            jim i was with netflix before the 28 day delay. but i am still not going to switch right now to streaming only. when they have current tv shows and new release movies after they leave the theater. then i will but not till then. there customer service sucks now.

  2. Visitor [Join Now]
    Farva [visitor]

    This is lawsuit is just as ridiculous as the one against Redbox.

  3. Visitor [Join Now]
    Tim Peck [visitor]

    “Did these two giants, one retail and one rental, collude to dominate the DVD business?”

    So what if they did collude? If they provide a valuable product in a free market then they deserve to dominate. If they do not, this opens the door (in a free market) to competition for customers at a profit.

    • Visitor [Join Now]
      Lars [visitor]

      Tim puts his pants on backwards

    • Member [Join Now]
      s142424

      “a secret understanding between two or more persons to gain something illegally, to defraud another of his or her rights, or to appear as adversaries though in agreement”

      So by it’s nature, the purpose of collusion is to subvert the free market. Way to know what you’re talking about, Tim!

  4. Member [Join Now]
    jimates

    They will get millions just from the customers that didn’t pay attention to the notice of the price increase. They will get their extra money for at least one billing cycle.

  5. Member [Join Now]
    jimates

    I am on the one disc plan and I have a two day turn around so I get 3 movies a week. Sometimes I have a hard time finding something to add to my list so I would never want to increase.

  6. Visitor [Join Now]
    santiago [visitor]

    Not that I’m a BB lover, but at the moment I’m subscribed to Netflix, BB and RedBox. The one advantage I see with BB is that I get my movies 3 at a time + when I’m done I go to the BB store (5mins from here) trade movies for new releases and no late fees. They’ll ship the movies on my queue when they report the movies as returned on the store. I think that I get more movies for the price like that. Netflix, I love the instant streaming, don’t really care for the one at a time DVD. Bad thing about it is that they hardly ever have a new release available for streaming, just older movies or TV shows. RedBox I like because it’s easy and convenient. Rentals are at a reasonable price. No monthly fee or subscription. But it has a downside and it’s the variety of movies and quantity of movies available per kiosk.

  7. Visitor [Join Now]
    Elizabeth [visitor]

    Walmart is evil. The want nothing more than to not only dominate, by any means necessary, the free market. They also want to eliminate any and all competition. If they had their way, there would be no other store. They also don’t care about the environment, their employees, or the working conditions of those who supply their products. Never, ever shop there.

  8. Visitor [Join Now]
    Koolinc2 [visitor]

    Thats one of the reasons why i cancelled my service with them.

  9. Visitor [Join Now]
    You people crack me up! [visitor]

    Most of you people appear to be illiterate. Maybe you should spend less time watching movies, and more time learning to spell, and construct coherent sentences.

  10. Visitor [Join Now]
    Steve [visitor]

    I agree with “You people crack me up” – It’s obvious from the first post what kind of people are ticked at not being able to rent 5-6 movies at a time. Peporoni? Really? Spell check much folks? How about using some punctuation between a few of those run on sentences people!

  11. Visitor [Join Now]
    pootroot [visitor]

    I can’t believe some of you people! Who cares if some people don’t use punctuation. The intent of a message is to get the information across. I don’t even have a problem with spelling. Some people just have to have something to complain about!