Netflix lawsuit: I don’t understand

Netflix to offer free month as part of case
Posted May 2, 2006
A judge has approved a class-action settlement requiring Netflix Inc. to offer a free month of DVDs to 5.5 million current and former subscribers. The settlement resolves a case that prompted the online rental service to acknowledge it gives preferential treatment to its most profitable customers. The settlement, released Monday after being approved last Friday, had been delayed since March when a California state judge balked at lawyers’ payments contained in a settlement proposal. Netflix expects to begin sending out notices of the final settlement later this month. The company has estimated the total settlement costs at $8.95 million, but that figure assumes it will pay $2.5 million in attorney fees.

They are losing a suit because they gave preferential treatment to their more profitable customers? You’re kidding, right? That doesn’t smack of socialism, that is the definition of socialism.

What am I missing here?

(BTW, I’ll be receiving a free month of service as part of the settlement. Heck, that might get me to start using Netflix again… wait a minute…)


  1. Derek says:

    I used netflix about 4-5 years ago. I wonder if I can get a settlement, too. I was actually thinking of getting it again since I’ll be moving to the middle of nowhere.

  2. Derek says:

    I signed up. Thanks for the link!

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