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Back in January, Walmart and Netflix were hit with a class action suit alleging illegal collusion between the two companies. Netflix was accused of taking 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.
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Netflix continues to fight the suit, but Walmart has settled. The latter may be using the settlement, however, to indirectly promote its own video streaming service.

Walmart’s settlement amounts to more than $27 million to be paid out to tens of millions of Netflix subscribers. The catch is that Walmart is looking to pay the settlement in the form of Walmart.com gift cards. Guess what happens to be lurking on Walmart.com? None other than Netflix streaming competitor Vudu.

Besides keeping its settlement money within its own coffers, so to speak, Walmart also would gain access to Netflix’s customer database in order to distribute the settlement.

The settlement won’t be approved until next February, which will give conspiracy theorists plenty of time to debate Walmart’s motives.
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What do you think, Insiders?

(via Paid Content)

12 Responses to “Walmart to Pay Out Netflix Settlement in Gift Cards?”

  1. Visitor [Join Now]
    Jason [visitor]

    I think settlements like this are ********. A company should be required to pay any sort of legal settlement in legal cash, not their own money. They’re basically giving themselves business with this move, and it’s not ethical in the slightest.

  2. Visitor [Join Now]
    Brad [visitor]

    Are they really going to send out checks or gift cards for 68 cents each? Ooh, ooh, please don’t forget to send mine!

  3. Visitor [Join Now]
    Wesley [visitor]

    They should be forced to send them certified, overnight, on a Saturday. I hope each 68 cent check costs them $25.

  4. Member [Join Now]
    Beverly Stewart [beverly-stewart]

    give me a break!

  5. Visitor [Join Now]
    Tim mayes [visitor]

    What is this a pf changs – the hang over 2

  6. Member [Join Now]
    krktoday

    Leave Walmart alone for crying out loud. If there is one fricken company willing to lower price’s in these horrible time’s do we need to have lawsuit after lawsuit to raise the price’s? People can’t stand it that Walmart has so much business. One example a pound of crisco cost me almost 7 bucks at Sweetbay. I can go 3 miles down the road to Walmart and get it for 4 something.

  7. Visitor [Join Now]
    PJ [visitor]

    I have to say that Walmart is definitely cheaper than Kroger in my area. I think lawsuits do nothing but raise prices for the rest of us. It’s not like anyone was physically hurt or emotionally damaged by what happened. I think it’s a crock and never should have been allowed in court.

  8. Visitor [Join Now]
    John R [visitor]

    It’s nothing but a pissing contest to see who has the best stream(ing) video service. The media gets hold of it and blows it all out of proportion and the people getting really hurt and emotionally damaged are the consumers who have to choose between feeding themselves and their families or getting medication to continue to do so. How did we ever get so f’d up in this land. I’ve given up trying to figure it. All I do know it is that once a superpowerful natioal agenda is set up to to fly

  9. Visitor [Join Now]
    Harold [visitor]

    It’s hard to put into words how wonderful your website is. Plainly speaking it’s been a long time since I’ve stumbled upon items like that . Carry on the great work.

  10. Visitor [Join Now]
    Bonnie [visitor]

    Unethical…………….. seriously. But it is ingenious I have to admit.