Netflix, Warner Bros., Sued In Class Action Lawsuit Over Delayed Movie Window

from the pissing-off-customers-left-and-right dept

Warner Bros. has been busy getting both Netflix and Redbox to agree to delay renting new release DVDs for 28 days, in the misguided belief that this will get more people to buy the DVDs. While Netflix has tried to spin this as benefiting customers it appears plenty of customers see otherwise. Specifically, at least one customer has filed a class action lawsuit against both Warner Bros. and Netflix, alleging that this is restraint of trade and has decreased the value of a Netflix subscription (thanks to Eric for sending this over). It seems unlikely that this lawsuit will get very far, but it certainly suggests that at least some Netflix customers are none too pleased with this move, despite Netflix's claims.

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  1. identicon
    sdb, 23 Jun 2010 @ 6:49am

    From what I understand their are two business models by the studios, one for first run movies and one for the release and sale of the copies after they are no longer playing in theatres.

    If they would just focus on better material, and making better movies they would get the money in the theatres and if people loved it they would buy a copy for themselves. This way both income generating business models would be satisfied.

    I do agree that they have no business on influencing Redbox or Netflix (as stated earlier by someone as 3rd party). If this were the case it would have to include rental stores like Blockbuster and any others, and that is just ridiculous. I wonder what research shows for Blockbuster as I think they offer sales of new releases as well as rentals.

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