Netflix DVD Class Action Lawsuit
Netflix DVD Class Action Subscribers Lawsuits
Netflix DVD Class Action | Lawsuits, Lawyers | Consumers, Victimized, Illegal Actions Subscription Fees, Monopolized Market
The lawyers / attorneys at our firm are currently investigating claims for a Netflix/Wal-Mart DVD Class Action Lawsuit. Netflix and Wal-Mart have been accused of colluding to monopolize the market for online DVD rentals. Their efforts have resulted in unreasonably high DVD rental prices for consumers.
Because of its collusion with Wal-Mart, Netflix has been able to charge higher subscription prices for DVD rentals than it otherwise would have charged if more competitors remained in the market. Our Netflix/Wal-Mart Class Action Lawsuit lawyers have alleged that the actions of the defendants violated the Sherman Antitrust Act and unfairly restrained trade.
If you subscribed to Netflix between May 19, 2005 to the present, you may be eligible for compensation. We urge you to contact one of our Netflix/Wal-Mart DVD Class Action Lawsuit lawyers right away to protect your legal rights.
Netflix and Wal-Mart Online DVD Rentals
Netflix is a
Since starting its online DVD rental business in 1999, Netflix’s total subscribers have grown at a compound annual rate of 70%, reaching about 10 million in 2007. Its annual revenues exceeded $1.2 billion in 2007, which has more than doubled since 2004.
Wal-Mart Stores, Inc. is a
Wal-Mart Stores sells far more DVDs than any other retailer in the
In the online DVD rental market, consumers pay a monthly subscription fee to an online service provider, such as Netflix, Blockbuster Online, or (prior to May 19, 2005) Wal-Mart DVD Rentals, in order to rent DVDs. There are no late fees or due dates, but, within any given plan, the consumer pays the subscription fee regardless of how many DVDs he or she rents per month. Thus, even a consumer who does not rent a DVD for months still is charged the subscription fee. Netflix CEO Reed Hastings has called this the “gym membership effect.
Netflix/Wal-Mart DVD Class Action Lawsuit
According to a Netflix/Wal-Mart DVD Class Action Lawsuit, Netflix, Wal-Mart Stores, and Walmart.com conspired to divide the markets for the sales and online rentals of DVDs in the
On May 19, 2005, Wal-Mart announced a DVD agreement in a joint press release with Netflix. Under the agreement, Netflix would not sell new DVDs in competition with Wal-Mart. Wal-Mart, in turn, agreed to exit the online rental business. Netflix then promoted DVD sales at Wal-Mart and Walmart.com.
Since the agreement was announced, Netflix has possessed a market share of at least 75% of the Online DVD Rental Market in the
Online DVD rental is highly capital intensive. A firm must operate on a large scale to be successful. Partly because of the additional barriers raised by the Netflix/Wal-Mart DVD agreement, there have been no significant market entrants in the more than three years since it was announced.
As a result of its market share, Netflix has had, and continues to have, market and monopoly power in the online DVD rental Market. It has the power to control prices or exclude competition in this market. The end result is that consumers have been forced to pay artificially higher prices for DVD rentals.
The Netflix/Wal-Mart DVD Class Action Lawsuit is seeking to have the market agreement between Wal-Mart and Netflix voided. It also asks that the agreement be declared illegal, and is seeking three times the normal damages for plaintiffs.
Legal Help for Netflix Subscribers
Our firm has helped hundreds of people victimized by the illegal actions of large corporations. Any person in the
If you or someone you know purchased a Netflix DVD rental subscription anytime since May 19, 2005, you should consult with an attorney. Please fill out our online form or call 1-800-YOURLAWYER (1-800-968-7529) to discuss your claim with the Netflix/Wal-Mart DVD Class Action Lawsuit lawyers at our firm.