Netflix Lawsuit?

[Ariyura]

So I got an email from onlinedvdclass.com stating that if I was a Netflix subscriber between 2005 to 2010 then I'm automatically apart of an class action lawsuit against Netflix and Walmart because they conspired to create a monopoly in the DVD market. It seems Netflix and Walmart entered an agreement to not step on each others toes dealing with DVD sales. What I don't understand is why this is so wrong? I mean two companies working together to forward each of their businesses, so why the need to sue?

 

[Ariyura]

Alright, you're right. My room mate just explained to me why it was a Monopoly when I just wasn't seeing it before. Thank you usmarine.

 

[Canadamus Prime]

Ok, except I don't see how this agreement would create a Monopoly, esp since a Monopoly usually involves ONE company or corporation dominating the market, not two.

 

[Ariyura]

Ok, except I don't see how this agreement would create a Monopoly, esp since a Monopoly usually involves ONE company or corporation dominating the market, not two.

What was explained to me was that with no competition the prices were allowed to be inflated to whatever they wanted. I still don't see it as bad but I can see how it could be a monopoly on the market. Netflix isn't hindered by Walmart and Walmart is getting sales from Netflix.

 

[Canadamus Prime]

Ok, except I don't see how this agreement would create a Monopoly, esp since a Monopoly usually involves ONE company or corporation dominating the market, not two.

What was explained to me was that with no competition the prices were allowed to be inflated to whatever they wanted. I still don't see it as bad but I can see how it could be a monopoly on the market. Netflix isn't hindered by Walmart and Walmart is getting sales from Netflix.

Yeah except that this agreement doesn't allow for that to happen. Any attempt to inflate prices by either company would be a violation of the agreement. In to inflate prices both companies would have to agree on an inflated price. Even if that did occur it's unlikely that partnership would last for long.

 

[Ariyura]

Ok, except I don't see how this agreement would create a Monopoly, esp since a Monopoly usually involves ONE company or corporation dominating the market, not two.

What was explained to me was that with no competition the prices were allowed to be inflated to whatever they wanted. I still don't see it as bad but I can see how it could be a monopoly on the market. Netflix isn't hindered by Walmart and Walmart is getting sales from Netflix.

Yeah except that this agreement doesn't allow for that to happen. Any attempt to inflate prices by either company would be a violation of the agreement. In to inflate prices both companies would have to agree on an inflated price. Even if that did occur it's unlikely that partnership would last for long.

I don't know when the partnership ended but Walmart is already trying to settle this whole thing Netflix has yet to be determined.

 

[Saint of M]

Also, what other companys does Wallyworld and Netflix own?

Blockbuster is doing the online thing now, and there is red box for rentals.

As for Wal Mart, do they not still compete with Target? Or maybe electronic sellers like Best Buy or that section past the questionable content in Rasputins?

 

[Ariyura]

Also, what other companys does Wallyworld and Netflix own?

Blockbuster is doing the online thing now, and there is red box for rentals.

As for Wal Mart, do they not still compete with Target? Or maybe electronic sellers like Best Buy or that section past the questionable content in Rasputins?

I guess Netflix gave Walmart a business kickback for not entering the digital dvd distribution race sometime back in 2006 when this all started, they wanted Walmart to refer customers to Netflix and Netflix wouldn't sell DVD's, they'd refer people to Walmart for that.

You're right, there is a lot more competition today and there would be no way they could get away with that in today's market.

 

[Dags90]

It isn't a monopoly per se, but it's part of a range of anti-competitive and illegal business practices like price fixing. There are rather broad resources for correcting large companies from colluding to inhibit competition.

 

[spartan231490]

It's a violation of anti-trust legislation. Like to point out, because I'm feeling anal today, that that isn't a monopoly, it's a duopoly, or an oligarchy. Still in violation of law, but hey.

Also DON'T GIVE THEM ANY INFORMATION.
I had a netflix account in that time as did my parents and my sister, and several friends. I haven't heard anything about this. I would be careful to avoid a scam.

 

[Ariyura]

It's a violation of anti-trust legislation. Like to point out, because I'm feeling anal today, that that isn't a monopoly, it's a duopoly, or an oligarchy. Still in violation of law, but hey.

Also DON'T GIVE THEM ANY INFORMATION.
I had a netflix account in that time as did my parents and my sister, and several friends. I haven't heard anything about this. I would be careful to avoid a scam.

You're right, I'm not hoping on this bandwagon, I was just surprised by this.