Netflix settlement approved

[somebodeez]

MAY 1 | A San Francisco Superior Court judge gave final approval to Netflix’s settlement in a class-action suit that charged the company failed to keep its promise of one-day deliveries and unlimited rentals.

Netflix admitted no wrongdoing in the settlement but has agreed to offer subscribers one free month of upgraded service under terms of the deal. Former members who qualify will get one free month of Netflix’s three-movies-out rental service.

Netflix also will pay $1.3 million to the class-action attorneys who filed the suit and an additional $60,000 to attorneys who filed complaints against the original settlement agreement announced last year.

The company, which has been awaiting court approval since presenting its revised settlement in February, plans to start notifying customers about the settlement offer.

Rest of the article:
http://www.videobusiness.com/article/CA6330367.html

[ROF]

It will be interesting to see how this effects their customers. The only people I know who complain about these services are those people who can seemingly watch 3 movies in a matter of 5 hours and send them back hoping within 24 hours they will get another three.

[Xylob the Destroyer]

indeed...
I have no life, but even on those occasions when I actually do wind up getting 3 discs in the mail all at once, it's rare that I can drop off 2 in the mail the next morning. I almost always mail them the morning after I got them, but 1 movie a night is pretty much my limit.
I seriously doubt that these folks are sitting up all nite watching all 3, 4, or even 5 DVD's that they got just that day in the mail.

[somebodeez]

This appeared in my queue a few days ago:


I noticed it said "unlimited".
I wonder in what sense does their use of the word "unlimited" means this time?

[Noahtuck]

The only people I know who complain about these services are those people who can seemingly watch 3 movies in a matter of 5 hours and send them back hoping within 24 hours they will get another three.

I can usually drop off two movies the next afternoon.

Yep i complain, when i send back a movie to a station that is a one hour drive from me on monday, they get it tuesday, then say they are shipping the next one out wensday and say it will arrive on saturday
And they all come and go to the same station
And yes, once in awhile i will get one that has to be sent back to a station on the other side of the country, guess what ? they seem to arrive in 24 hours to the stations on the other side of the country but it takes 4-5 days to get to me from an hour away......
Yeah right

[somebodeez]

And this is on my account page:

[ROF]

The only people I know who complain about these services are those people who can seemingly watch 3 movies in a matter of 5 hours and send them back hoping within 24 hours they will get another three.

I can usually drop off two movies the next afternoon.

Yep i complain, when i send back a movie to a station that is a one hour drive from me on monday, they get it tuesday, then say they are shipping the next one out wensday and say it will arrive on saturday
And they all come and go to the same station
And yes, once in awhile i will get one that has to be sent back to a station on the other side of the country, guess what ? they seem to arrive in 24 hours to the stations on the other side of the country but it takes 4-5 days to get to me from an hour away......
Yeah right

This is what you get when dealing with the USPS. Ever try using their online tracking service(worthless)? I've had packages waiting for delivery in my local USPS office only to have them shipped to another part of the state and finally a week later my package arrives. Does the USPS really need to raise the price of stamps? If they do will the quality of service be any better? In most cases I would say this issue isn't a netflix issue but instead a USPS delivery service issue. But again if you can get 4-5 movies a week that is much more than a typical person can watch and if you are watching more than that perhaps it's time to introduce your senses to the best movie production of all. Yes, you can open the door go outside and watch the things that goes on in your neighborhood. Take a walk to the park. I'll bet if people did this more they wouldn't be concerned that they are going to miss their 10th movie of the week or even better I'll bet you won't even care when the package arrives.

[ROF]

And this is on my account page:

You simply need to read their FAQs to learn that unlimited is effected by numerous factors which are listed and defined on their website. I saw an advertisement once for unlimited seafood buffet. I didn't see anyone coming back the next day claiming that they paid yesterday and so they want to be allowed to continue eating again today and not incur another fee.

[Noahtuck]

This is what you get when dealing with the USPS. Ever try using their online tracking service(worthless)? I've had packages waiting for delivery in my local USPS office only to have them shipped to another part of the state and finally a week later my package arrives. Does the USPS really need to raise the price of stamps? If they do will the quality of service be any better? In most cases I would say this issue isn't a netflix issue but instead a USPS delivery service issue. But again if you can get 4-5 movies a week that is much more than a typical person can watch and if you are watching more than that perhaps it's time to introduce your senses to the best movie production of all. Yes, you can open the door go outside and watch the things that goes on in your neighborhood. Take a walk to the park. I'll bet if people did this more they wouldn't be concerned that they are going to miss their 10th movie of the week or even better I'll bet you won't even care when the package arrives.

Yes, it's a NTEFLIX problem, when i send a dvd back on monday & netflix say's it arrived tuesday, then they state on my page on their website that the next one will ship wensday and will arrive on saturday and it arrives saturday, it's pretty clear it's nothing to do with USPS just as i stated

I am on the 3 movie at a time & i get plenty of time outside riding, working ect. prob. more than you or most here
It's easy for me to watch acouple of movies a day, watch one or two while i'm working, watch one while i'm in bed for the night, ect.

I even have a buddie who works for GM and he has a portable hat he is allowed to bring to work to watch because most of the time he just has to sit there and wait for a warning to go off if something being monitored messes up 8) so he watches ALOT of movies!!! and plays his portable game systems at work

[Noahtuck]

And this is on my account page:

You simply need to read their FAQs to learn that unlimited is effected by numerous factors which are listed and defined on their website. I saw an advertisement once for unlimited seafood buffet. I didn't see anyone coming back the next day claiming that they paid yesterday and so they want to be allowed to continue eating again today and not incur another fee.

No, but wait till they try and stop my buddie from going back the same meal for the 14th time
Where in the world do you come up with these comparison's

Just like i said before, when it is clear that they are dragging their asses, the only affected factor is exactly that

[ROF]

I am on the 3 movie at a time & i get plenty of time outside riding, working ect. prob. more than you or most here
It's easy for me to watch acouple of movies a day, watch one or two while i'm working, watch one while i'm in bed for the night, ect.

I even have a buddie who works for GM and he has a portable hat he is allowed to bring to work to watch because most of the time he just has to sit there and wait for a warning to go off if something being monitored messes up 8) so he watches ALOT of movies!!! and plays his portable game systems at work

If anyone has ever wondered why American jobs are going overseas or why the American workforce is full of non-resident aliens they need only to read your post to figure out why.

[somebodeez]

I saw an advertisement once for unlimited seafood buffet. I didn't see anyone coming back the next day claiming that they paid yesterday and so they want to be allowed to continue eating again today and not incur another fee.

Not even close to the same situation.
I don't know of any "unlimited seafood buffet" places where you can pay a flat, monthly subscription/membership fee and go there as many times as you want to eat but if there were such a place and it was run by NF, I guess we'd get pushed to the back of the line while they favor new customers .

[somebodeez]

I seriously doubt that these folks are sitting up all nite watching all 3, 4, or even 5 DVD's that they got just that day in the mail.

I could see a circumstance in a household where a movie might be for the kids while the parents rented one for themselves and perhaps another for the teens. Many households also have more than 1 TV and DVD player these days too :P so yes, it is possible for a family to watch their various rentals in a day.

[ROF]

Not even close to the same situation.
I don't know of any "unlimited seafood buffet" places where you can pay a flat, monthly subscription/membership fee and go there as many times as you want to eat but if there were such a place and it was run by NF, I guess we'd get pushed to the back of the line while they favor new customers .

I don't know of any that say once you leave you can't come back in and continue eating. That's what unlimited means. It means without limits. In the netflix case mailing and return of rentals are only two factors in a complete list of issues involved in the exact number of DVDs you can rent per month under their unlimited plan.

[ROF]

I could see a circumstance in a household where a movie might be for the kids while the parents rented one for themselves and perhaps another for the teens. Many households also have more than 1 TV and DVD player these days too :P so yes, it is possible for a family to watch their various rentals in a day.

All well and good, but that doesn't mean tomorrow they need another movie, especially the children. Children should not be allowed "unlimited" television time.

[InXess]

Former members who qualify will get one free month of Netflix’s three-movies-out rental service.

Netflix also will pay $1.3 million to the class-action attorneys who filed the suit and an additional $60,000 to attorneys who filed complaints against the original settlement agreement announced last year.

Consumer: 20 bucks
Attorneys: 1.3 million

Another huge win for consumers...

[somebodeez]

All well and good, but that doesn't mean tomorrow they need another movie, especially the children. Children should not be allowed "unlimited" television time.

Another circumstance I can think of is quite possibly, there are those who are housebound due to health reasons and watching movies may be their main source of entertainment.

While I agree that children shouldn't have "unlimted" TV time (in MY sense of the word anyway ),
my point was that there are circumstances that we might not know anything about and so judgement may be misplaced.

[somebodeez]

Consumer: 20 bucks
Attorneys: 1.3 million

Another huge win for consumers...

So true!

[ROF]

All well and good, but that doesn't mean tomorrow they need another movie, especially the children. Children should not be allowed "unlimited" television time.

Another circumstance I can think of is quite possibly, there are those who are housebound due to health reasons and watching movies may be their main source of entertainment.

While I agree that children shouldn't have "unlimted" TV time (in MY sense of the word anyway ),
my point was that there are circumstances that we might not know anything about and so judgement may be misplaced.

Again, all well and good, but I don't think there was a judgement made. I based my original opinion that most people complaining about the service are actually wanting more than 2-3 shipments per week because that is the complaints that follow such things. Unlimited rentals does not include unlimited times between shipments. You may get a great turnaround on one shipment while the next one might take a few days due to the circumstances listed in netflix's TOS. You get unlimited rentals but shouldn't expect the USPS to care or expect that unforseen circumstances will never occur while the service processes your queue.

[somebodeez]

Well, I think that we're probably going over the same NF issues that have already been stated several times. We each have our own experiences and opinions and those are not likely to change no matter who says what.

I just wanted to post the news about the settlement for those who, like me have been curious about it and was wondering what the latest was.

[ROF]

I think they should have held out for a larger settlement.

[jimmalenko]

I think we should ban the word "Netflix" in thread subjects - all it does it bring the fanboys out of the closet.

Vote with your wallet and sign up with a service that does provide you with unlimited movies.

[lordsmurf]

I based my original opinion that most people complaining about the service are actually wanting more than 2-3 shipments per week because that is the complaints that follow such things.

There are only really four reasons:

1 - Person wants more movies but only signs up for the small plan. If you want 6 movies a week, sign up for the 6-at-once plan. Quit picking 3-at-once plan and then complain.

2 - Person that wants to "back up" rentals. Oh boo hoo, Netflix is not fast enough to aid and abet your illegal activity.

3 - Person that only wants new movies and ends up later in the queue. First come, first serve, for the most part. Unless you rent too much, then you get pushed below others with less needs. Expand your list, learn some patience, rent other stuff in the meantime.

4 - One of those people that simply likes to complain.

All this "unlimited" non-sense is just a loophole to try and nag at. In the end, it did not work. Common sense prevailed.

[ted11]

Interesting reading this from the UK perspective, as some of our companies have Fair Use Policies, yet advertise "unlimited services" as well, namely Lovefilm, which is merging with market leader Screenselect soon to create a huge company with over half the market share here. In the UK, Blockbuster has the reputation of being the quickest to turnaround DVDs and not throttle (partly helped by Saturday mailings unlike the rest).

I run a blog on the UK online DVD rental industry, latest piece commenting on Netflix's continued delay in offering a download service (latest is it will be sometime in 2007, a far cry from their earlier goal of late 2005), which may be of interest:

http://www.uk-dvd-rental-guide.com/blog/

Cheers

[NiteLite]

Another circumstance I can think of is quite possibly, there are those who are housebound due to health reasons and watching movies may be their main source of entertainment.My point was that there are circumstances that we might not know anything about and so judgement may be misplaced.

Exactly!!!
There are many that are bed or sofa ridden that can do nothing much but work the remote while recovering or have permanent disabilities.. Watching 5 or more movies in a 24 hour period is quite easy for those situations.
Also as someone mentioned with multiple kids, the wife and yourself all with your players and personal choices, a family can go through 5 movies in a couple hours.
Think naysayers. Not everyone lives their lives as you would dictate them.

And to the one that wants to ban the word "Netflix"...get a grip. Maybe others would like to ban people that want to promote censorship and no freedom of speech. What's next book burnings?
Everyone has their OWN life. No need to live up to anyone else' expectations.

BTW...because I read and understand the new terms of service I have opted out of the free upgrade. My opt out letter in in their lawyers hands and I neither expect or care for any kind of free upgrade.

[jimmalenko]

And to the one that wants to ban the word "Netflix"...get a grip. Maybe others would like to ban people that want to promote censorship and no freedom of speech.

You're in a private house, here (in the forums). Censorship and/or freedom of speech (or lack thereof) are totally up to the landlord. We have no rights.

My comment was simply a reflection of (sometimes) a little too much time here over the years, having seen this over and over and over and over again ...... the same "old" players get involved as well as the "newbies" who have joined since the last Netflix thread. The long and short of the matter is that it ain't gonna do jack-shit arguing about it here.

[somebodeez]

I received an email from NF on May 12:

Under the amended settlement, you will still receive your free one-month membership if you are an eligible former Netflix member. However, your membership will end automatically after one month unless you choose to continue your service and pay the regular subscription rate after the free month. Former members who do not choose to continue the service must return all rented DVDs within 7 days following the expiration of the free month or be subject to charge for the outstanding DVDs under Netflix's standard policy (currently, $20 per DVD). Likewise, you will still receive your free upgraded membership if you are an eligible current Netflix member. However, your upgraded membership will return to your previous service level after one month unless you choose to continue the upgraded service and pay the regular subscription rate for that level after the upgraded month. Additional changes to the settlement are reflected in the Amended Settlement Agreement. If you wish to compare the Amended Agreement with the Original Agreement, the Parties have posted a comparison at www.netflix.com/settlement.

Because the settlement has been modified, you have a chance to change your previous decision to participate in it. If you still want to receive the free membership or free upgraded membership, you do not have to do anything. If you have changed your mind, and now want to exclude yourself from the class, you have until June 26, 2006 to do so. To summarize, your options are:

Option 1. Receive The Benefit

To receive the benefit, you do not need to do anything. Netflix has received your completed registration and will notify you when the benefit is ready. The free service or free upgraded service will automatically terminate at the end of the free month, unless you choose to continue it.

Option 2. Exclude Yourself From the Class

To exclude yourself from the class, you must mail a letter by June 26, 2006. See Section VII.B. of the Amended Long Form Notice at www.netflix.com/settlement for information about the required contents of the letter and the mailing address. By excluding yourself, you preserve your right to bring a lawsuit against Netflix concerning the Claims Released By The Class. However, you will not get the benefit for which you previously registered.

The settlement was approved by the Court on April 28, 2006. The class benefit will be provided after the Effective Date. As described in the Amended Settlement Agreement, the Effective Date depends on such factors as the pendency of any appeals and is therefore difficult to predict. Pursuant to the terms of the settlement, in addition to providing the benefit described above, Netflix will modify portions of its Terms of Use. Netflix also will refer to its Terms of Use in certain advertisements. Class Members are subject to the revised Terms of Use, available at www.netflix.com/TermsOfUse. Netflix has also agreed to pay up to $2,528,000, and the Court has awarded $1,387,138, in attorneys' fees and costs to counsel for members of the Settlement Class, including Class Counsel and counsel for all objectors, intervenors and proposed intervenors, with an express reservation that an additional and enhanced fee may be awarded upon the final showing of the number of Class Members who timely and accurately complete the Claim Form Process.

To get more information about the settlement and procedures, and to take option 2, visit www.netflix.com/settlement.

[ROF]

I still fail to see how Netflix did anything wrong. Last time I checked they are not in the delivery business and therefore I do not understand why they could be liable for failing to provide one day deliveries. I also fail to see how they not provided unlimited rentals. Unlimited rentals is defined by them in their FAQs. Unlimited to some may mean 20+ DVDs per week but in a logical world it would mean more like 5-7 DVDs per week if you mailed them back a few hours after receiving them.

[adam]

The accusations were that they intentionally throttled shipments, not that the shipments got held up by the shipper or that they failed to offer next day service. The faq basically says that unlimited means that you can get as many dvds per month as you want, as often as you want. Obviously all real world restrictions apply, like shipping time. But if Netflix was throttling those shipments than that seems to be a pretty clear, and unneccessary, limit on the number and frequency of your shipments, placed by THEM. Its basically just a deceptive and shady business practice. The settlement doesn't mean they admit this happened or that they are liable in any way, it just means that we can be fairly assured that this practice won't occur in the future.

[dafoe]

I still fail to see how Netflix did anything wrong. Last time I checked they are not in the delivery business and therefore I do not understand why they could be liable for failing to provide one day deliveries. I also fail to see how they not provided unlimited rentals. Unlimited rentals is defined by them in their FAQs. Unlimited to some may mean 20+ DVDs per week but in a logical world it would mean more like 5-7 DVDs per week if you mailed them back a few hours after receiving them.

"Unlimited" means just that. Before the lawsuit, the TOS stated that as soon as they received a return they would send out the next movie. Certainly, based on that definition of unlimited, you don't think that it should take more than 24 hours to process a DVD and ship out the next one do you? Okay, I understand that things happen. Postal delays, understaffed processing centers, etc can come into play ocassionally. But on average it shouldn't take more than 24 hours.

For "heavy" users it was taking 2-3 days or longer . Through various tricks, they were throttling their higher volume customers. They were introducing artificial delays into the shipping chain and therefore not providing their customers what they paid for and were promised.

That is what all these people that subscribe to the "people are only bitching cause they can't steal 76 movies a week" mantra just can't seem to wrap their mind around. Netflix was cheating their customers. For many people, it was simply a matter of principal. I don't like being lied to and cheated.

I was not a high volume user but still had many problems with Netflix. The last straw was when I started working in the same city as the local distribution center. Often, I would drop off discs around 6 am (before the Post Office opened) on my way to work. This was the same Post Office where they picked up the discs. Even then, the discs were still not reported as being returned for 2-3 days. And not once were they EVER reported as being retuned on the day they received them.

As mentioned, this has been debated earlier, before the lawsuit. There are two camps: The disgruntled Netflix customers and the people who brand all of us as paranoid disc hungry pirates. All the while never comprehending the true crux of the argument against Netflix

For months were told emphatically that there was no such things as throttling. That we were parnoid. The idea was laughable. Outrageous even. Then they would pile on with some sort of insult. Usually calling us pirates, whiners or some other such nonsense.

I really didn't think anybody would be big enough to step up and admit they were wrong. But I thought at least a CLASS ACTION LAWSUIT would shut them up.

Let me be the first to admit, I was wrong. About the silence. Or lack thereof anyway.