The Dark Side of Netflix

Netflix Underground is not affiliated with Netflix, Inc.

3/20/2008

Rude Netflix Customer Service

In The Huffington Post, an article by Ron Galloway ("Netflix Death Watch") claims indifferent, arrogant, and rude treatment from Netflix customer service representatives. Have you noticed Netflix customer service representatives getting more unpleasant recently? If so, post your Netflix customer service story here.

1/28/2007

Netflix Undergrounder Uses Better Business Bureau to Deal with Netflix

Netflix Undergrounder, James Kelly, has chosen to enlist the help of the Better Business Bureau (BBB) to resolve his frustrations with Netflix’s business practices. Click here to view his official complaint.

Most people realize that the power of the BBB is very limited; however, the BBB does provide an important service. Through the BBB, customers can get attention for their complaints. While a big company like Netflix may pay little attention to complaints directly from customers, even the biggest companies know that blowing off the BBB is unwise. BBB members agree to certain requirements and can face unpleasant consequences if they show a pattern of bad business practices.

Kelly may never receive significant monetary compensation for his troubles with Netflix, but he has done something important. By filing a BBB complaint, Kelly has created a permanent record of Netflix’s abuses, and he has forced Netflix to address the charges.

Netflix has to invest time and money to address complaints filed with the BBB. Every additional complaint filed with the BBB against Netflix means Netflix will have to spend more time and money addressing the complaint. At some point, Netflix may find that displeasing customers is more expensive and troublesome than making sure those customers are happy.

One complaint on its own is not much of a hassle for Netflix, but volumes of complaints could create a major problem for Netflix. If just a fraction of the disgruntled Netflix customers filed their grievances, Netflix might have to address a flood of complaints, and the BBB would have to start asking Netflix some questions about why the company angers so many customers.

If you have a complaint about your Netflix service and you think Netflix is not taking you seriously, you might consider enlisting the help of the BBB. At the very least, you will make Netflix pay attention to your concern.

Click here if you want to file a complaint against Netflix with the BBB.

Click here to find a lot of the information you will need from Netflix’s BBB profile.

Click here if you would like to use James Kelly’s complaint as a model for your own complaint.

Good luck with your BBB complaint, James. Hopefully, you will see some satisfying results for your efforts.

12/09/2006

Exchange Netflix Mailers for Free Blockbuster DVD Rentals

Normally, Blockbuster is not mentioned on this site, but a current event demands that both companies be mentioned.

Until December 21, Blockbuster is giving a free in-store rental for each Netflix address flap you bring to a Blockbuster store. The part of the Netflix mailer that you normally throw away can now be used as a coupon for a free rental.

To take advantage of this offer, you will need to have or sign up for a free Blockbuster store membership. The free rentals are subject to normal rental terms.

Click here to learn the details.

5/14/2006

Another Chance to Opt-Out of the Netflix Settlement

As expected, the Frank Chavez v. Netflix, Inc. settlement (www.netflix.com/settlement) has been revised slightly to eliminate the previously proposed automatic billing element. This revision to the settlement terms gives you another opportunity to exclude yourself from the class and preserve your right to sue Netflix in a separate case.

Note that you may exclude yourself even if you had already joined the settlement class. If you wish to exclude yourself from the class, you must send a letter stating that you wish to opt-out of the settlement. The deadline is June 26, 2006.

For information on how to opt-out, see Page 6 Item B of the Notice of Amended Class Action Settlement. Follow the directions carefully or your request will be considered invalid.

4/06/2006

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4/05/2006

Netflix Sues Competitor over Business Model

Netflix is suing their major competitor over its business model. A major issue is whether Netflix owns the queue concept for selecting and distributing DVDs to subscribers.

The complaint was filed in the U.S. District Court in San Francisco and is likely to launch the biggest legal battle yet in the DVD-by-mail industry.


Associated Press:

Online DVD rental service Netflix Inc. on Tuesday accused Blockbuster Inc. of illegally copying its ideas in a patent infringement lawsuit challenging the video store chain's recent Internet expansion.

The complaint, filed in U.S. District Court in San Francisco, focuses largely on the online wish lists that prioritize the DVD desires of about 5.4 million people who subscribe to either Netflix or Blockbuster's Internet service.

Netflix also believes its patents cover perhaps its most popular feature -- the option of renting a DVD for an unlimited time without incurring late fees.


Read the full article here.
“Netflix Sues Blockbuster for Alleged Patent Infringement”

2/23/2006

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 www.netflixsettlementsucks.com 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”