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Anime News

Netflix Offers Upgrades to Settle Suit
Date: 11/2/2005
Netflix will offer members a one-month service upgrade as part of its recent settlement to a class-action lawsuit charging the company with false advertising, the company said in a Tuesday evening e-mail to subscribers.

The suit, filed in San Francisco Superior Court, charged that Netflix didn?t provide unlimited rentals and one-day deliveries as advertised. Netflix has denied wrongdoing but agreed to settle the suit. The settlement costs dragged down Netflix third-quarter net income by $3.4 million.

Under the proposed settlement, Netflix subscribers who joined the service before Jan. 15 and remained members through Oct. 19, will get a one-month upgrade in their service level while paying their usual subscription price. For example, subscribers to the three-movies-out plan would pay $17.99 but would get four movies out at a time for one month. Those who subscribed to Netflix before Jan. 15 but canceled their membership before Oct. 19 are eligible to one month of free service. Netflix users must register by Feb. 17 to receive the upgrade.


The settlement offer still must be approved by the court.
Source: Video Business Online