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April 22, 2008 5:36 PM PDT

Settlement will stand in Netflix 'throttling' case

by Greg Sandoval
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The terms of a 2006 settlement in a lawsuit against Netflix will be allowed to stand over the objections of four Netflix subscribers, according to a report by Reuters.

In the initial lawsuit, the customers accused the company of "throttling." They alleged that Netflix held up delivery of DVDs to customers who were heavier users of the service--and therefore less profitable--in order to fill orders for new customers and less frequent users.

In 2006, Netflix reached a settlement agreement, but the four Netflix subscribers challenged it, saying the attorneys' fees awarded by the trial court were "excessive" and they were improperly notified of the terms of the agreement.

As part of the settlement, Netflix agreed to give 5.5 million users a free month of service and to pay attorneys' fees.

On Tuesday, however, a California appeals court upheld the settlement, marking a victory for the online video rental company.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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I gave up on Netflix
by pgrocks April 22, 2008 6:44 PM PDT
I was clearly a victim of their process. I had over a dozen movies in the list and none were being shipped for 2 weeks. I solved my problem.... I cancelled my subscription.
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I'm not going to give them a chance
by aka_tripleB April 23, 2008 12:38 AM PDT
I don't find new movies all that entertaining and definately not worth wasting a monthly fee for something that I'm going to use often enough. It's much cheaper for me to walk uptown and rent a movie when I think there is one that will be good. I spend maybe $6 a month ($3 for new movies, $2 for old) and I get a little exercise. I might only get to keep the movies one day, but that's almost always long enough.
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