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”

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