Netflix customers have the option to share in a $27 million settlement stemming from allegations that retail giant Walmart conspired with the video-subscription company to raise prices on DVD sales and rentals.
It all began back in 2005 when Walmart decided to get out of the DVD-by-mail business and hand its subscribers over to Netflix, which would then pitch Walmart to its customers as a place to buy their favorite movies on DVD. A number of state and federal lawsuits have claimed that Netflix owes much of its success – and in the process, destroying competitors like Blockbuster – to this so-called shady deal with Walmart, Fox News reported.
There's no point, however, in Netflix customers getting too excited that they might be in for a big windfall. More than 25 million current and former customers are eligible to receive cash or Walmart gift cards resulting from the settlement. And with attorneys fees likely to run as high as $7 million, that leaves less than $18 million, or roughly 75 cents per person. It might be a little higher than that since people have the option to opt out.
As part of the settlement agreement, Walmart denies any wrongdoing.
