The Dark Side of Netflix

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Netflix Gives in a Little on Settlement

On February 22, 2006, Netflix attorneys announced that Netflix would modify the previous Chavez vs. Netflix settlement agreement that promises a free month of service or account upgrade to some former and present Netflix subscribers.

Originally, the settlement terms required the subscribers to manually cancel subscriptions at the end of the free month or be billed automatically for each month thereafter. The new terms of the settlement require that the participants will be billed only if they specifically agree to continue their subscriptions prior to any billing.

The new terms of the settlement represent a substantial improvement, but the settlement is still pretty pathetic. Some subscribers were cheated out of several DVDs per month for many months. For example, what if Netflix throttled a $17.99 subscriber by 40% for a year? That is a loss of around $86. Imagine the subscribers on the big rental plans. Those people get throttled worse than anyone and may have throttling losses in the hundreds.

Netflix must have made some incredible profits on the backs of their subscribers. If this lawsuit settlement goes through, Netflix will be getting off very easily and the victimized subscribers will be getting only a meager benefit that is bound to lead to additional frustrations.

If you do not agree with the terms of the Netflix settlement and want to learn how to protest or opt-out, visit for more information.

Note: If you intend to sue Netflix, you must take the initiative to opt-out of this settlement, and you should consult an attorney as soon as possible.

Houston Chronicle Article
“Netflix Modifies Class-Action Settlement”


Associated Press Reports Netflix Throttling

An Associated Press article by Michael Liedtke addresses the issue of Netflix’s throttling. The article is about two years too late, but at least the writer does not gloss over the issue of throttling like virtually all mainstream journalists do when reporting on Netflix.

The article, “'Throttling' Angers Netflix Heavy Renters,” simply details what the rest of us have known since 2004. The ironic thing is that people proclaiming theories of Netflix throttling a year or two ago were called paranoid conspiracy theorists. Now, those wild conspiracy theories about Netflix are the facts of an Associated Press article.

Netflix made fools of their loyal supporters. Netflix told them throttling was a myth, they believed it, and embarrassed themselves by defending the company in front of friends and family.

Throttling existed all along, and Netflix hid the practice from the customers as long as they could get away with it. Finally, their business practices just got to be too much to hide, and Netflix quietly began coming clean.

Unfortunately, for Netflix, it may be too late. Many people have learned the truth the hard way and have warned others about Netflix. Netflix and throttling are two words that are now inexorably linked. Netflix’s reputation for deceiving customers will haunt the company for years.

You can read the Associated Press article at the following links.
“'Throttling' Angers Netflix Heavy Renters”
“Netflix Sends Frequent Renters to the Back of DVD Line”

Make sure to forward this post to anyone who called you a paranoid conspiracy theorist when you told him or her about Netflix’s dark side.