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Netflix files lawsuit against Blockbuster

5 April 2006 9:04 by James "Dela" Delahunty | 85 comments

Netflix files lawsuit against Blockbuster Netflix, a popular online DVD rental service with over 5 million subscribers, has filed a lawsuit against competitor Blockbuster alleging basically that the rental chain stole its ideas. Netflix has patents protecting the way its service works from how customers use its website to receive movies while paying a monthly subscription to how customers can keep movies for as long as they want without late fees and how they can rejig a "preferred film" list on the site.

Blockbuster is the world's largest video rental chain, but the company launched a Netflix-like service as demand for the store-based business began to decline due to Netflix and other online services becoming more popular. Now Netflix wants Blockbuster's similar service immediately halted and the court to award damages. Netflix was founded in 1999 as one of the first online DVD rental services.

Blockbuster is hoping that this year the number of subscribers to its service will increase to 2 million. Analysts predict that the challenge by Netflix will be complicated as it may be tricky to enforce their patents.

Sourcew:
BBC News


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    Discuss this article!  There are more user comments available, read them here
    tmfloria (Senior Member) 9 April 2006 7:44 Send private message to this user   
    Your best bet for renting Movies is if you don't mind going to the video store.. Going to Blockbuster and getting one of their IN STORE Passes and rent as many movies for a month for one fee.. if you want to rent a movie and return it 2 or 3 hrs later you can...
    Mez (Senior Member) 9 April 2006 16:33 Send private message to this user   
    Rocky999
    Netflix was successfully sued because their real polacy 12 a month was not their advertised polacy. It sould like they need to be sued again! BlockBuster is no better in that respect. They need to be sued as well.

    At 12/month they can really hold you to maybe 10 because you sometimes slip. Still 10 for $15 is not all that bad. I did Netflix for over 2 years and BB for over a year. I also did a few in-store deals where you rent a disk or two for the month and you can switch them out several in a day. That is the cheepest way to rent if all you want to do is do movies. Now I am content to get my 10 and get 7 coupons for a BB store. That breaks down to 6 new releases and 11 oldies per month. They dont release 6 good movies a month.
    leia176 (Junior Member) 10 April 2006 10:24 Send private message to this user   
    Yes, in-store rentals may be the cheapest way to rent movies, however the selection is not there.
    rocky999 (Junior Member) 10 April 2006 10:45 Send private message to this user   
    Maybe they may trying to behave since they have been sued. Not sure exactly why, but I have always done well by them. I am a VERY heavy user. I have been using netflix since Oct 03 and have never gotten less than 16 titles in 1 month with several months getting 23. Just this last Saturday (april 8th) I dropped off 3 envelopes at the PO in the morning. Today (Monday) my que shows that they recieved all three and they are sending out 2 titles today and one on tuesday. Now granted, I don't always get my top picks right away but I keep my que full (currently at 151)so who cares.
    I live in North Central NJ and there is a netflix depot in New Brunswick (NJ) which is about 40 miles away. Maybe that's the reason but I have been very happy with them. If I ever get to the point of getting 12 or less a month, then I will drop them. Simple as that. But right now, I really can't complain at all. Maybe it really depends if you live in a "heavy" user area?
    moocowgal (Junior Member) 10 April 2006 11:20 Send private message to this user   
    I've used both Netflix and Blockbuster and still do. Between the two you can usually find an old movie that you're looking for. If one doesn't have it the other usually does.
    I've had problems with both as well. With Blockbuster I've had to report and send back a lot of broken disks. One movie it took 3 times before I got an unbroken disk. I've had queue problems with Blockbuster as well. I've had a movie sitting at the top of my queue for 6 months and most of the time it was listed as available now but was passed over. Apparently if the movie isn't available from one of the nearest distribution centers because they no longer have a copy, there is no effort to ship it from elsewhere. So I take that to mean that this particular movie is available... but not to me. I'm going to leave it there at the top of my list and see how long it takes, if ever, to get it.
    With Netflix I've experienced the "throttling". I get no more than 12 movies a month. Add to that the fact that they send out "rental versions" of TV series disks which were originally issued as 2 sided disks but if you rent them from Netflix you get each side on a separate disk.
    I think it's kind of a toss up between the two. Netflix sends out the movies as soon as they say they've gotten the returns and I get them the next day... but it seems to take longer for them to log them in as having been received. Blockbuster adds the time on the other end. They're quick to respond that they've received a returned disk but slower at sending the next one out.
    I rent using the 3 at a time program from both.
    Blockbuster has also changed its policy about the use of the monthly coupons for new subscribers. Only those with subscriptions at the time of the policy change will still be able to use the coupons to rent games. New subscribers will only be able to use the coupons to rent movies.
    ZippyDSM (AfterDawn Addict) 10 April 2006 15:13 Send private message to this user   
    How the hell do you tell 2 double sided discs apart? 0-o
    they realy should count every 2 or 4 discs to a show as "1" going by stright dvd count is fudgeing with the numbers I think >>
    S2K (Member) 10 April 2006 18:44 Send private message to this user   
    "leia176 (Newbie) 10 April 2006 14:24 Send private message to this user
    Yes, in-store rentals may be the cheapest way to rent movies, however the selection is not there."

    Wrong. For new releases in store is the best. Over at hacking netflix Netflix users report average wait for new releases is 2 to 4 weeks.

    40 year old virging took most netfilx users over a month to get. blockbuster users reported gettting it in two weeks online BUT constsant store availabilty. same thing for other new releases such as brothers grimm, king kong, geisha, jarhead etc. very long waits on netflix, shorter waits on blockbuster online -- constant availabity in stores.

    so those store blockbuster store coupons are in fact a better seletion of on demand movies than netflix!

    Of course if you want to rent 20 minute yoga disks that sell for $4 to purchase netflix does have a good slection!
    DarthMac (Newbie) 11 April 2006 2:17 Send private message to this user   
    Just tried BB for this month after using Netflix for over 2 years. Mail is slow (took 7 days to for mail to reach me from the time the website said it sent it), customer service sucked, and the only great thing was the in-store coupons for new movies. I think it would help BB if one could drop off a viewed DVD and the clerk could log it into the computer right away so the next DVD can be sent. However theres only 1 guy in the entire store thats worth his salt anyway. Going back to Netflix!
    leia176 (Junior Member) 11 April 2006 5:40 Send private message to this user   
    s2k..not necessarily wrong on the in-store selection. Does the store carry 50,000 titles?? Yes, definitely for new releases. It depends on what you rent. I like science and nature shows, documentaries, television series and old movies along with newer stuff so I'm perfectly happy not to go to the store.
    coolbrz (Junior Member) 11 April 2006 8:01 Send private message to this user   
    I just got my first damaged disc from Netflix. Cracked!
    brasscap (Inactive) 11 April 2006 10:05 Send private message to this user   
    I've read all the bitches about Netflix, and I have some advice for you. First of all, make sure the bar code on the envelope shows through the opening in the mailer. I often have to rap the mailer on edge to make sure it shows. That way when Netflix gets your return they run it through a sanner and voila! You are credited! The same applies to sending two in a mailer. The second one won't show, and so it must wait until some warm body gets to it and opens the mailer. How long does this take? Your guess is as good as mine as computerization is taking over from warm bodies who usually can't read or make chane anyway. A good many of you writing to this newsletter can't spell worth jack anyway!

    Second, yes Netflix got sued. By a law firm in San Francisco who found someone who thought he'd been "misled." They filed a Class Acton suit wherein they can get astronomical fees regardless of what the "class members" get. The result? Netflix settled, the lawyers got their "fees" and the guy who complained got jack. And Netflix, having learneed their lesson, changed their rules and started making sure that new subscribers got preference. You can read the policy on their web site.

    The moral of this story? 1- Quitcherbellyaching and be glad that someone buys all those DVDs and rents them under reasonable conditions; and 2- Don't get the lawyers involved! I know. I'm a retired lawyer!

    Oh yes, I like anime and those are the DVDs that are broken and scratched because they are rented by juvenile delinquents who aren't careful and don't consider others who may rent the same disk. Speaking of Anime, I also like Hentai and if you want to get jerked around, sign up with one of those on-line rental sites.
    tashacat (Member) 11 April 2006 13:50 Send private message to this user   
    Oh My! Isn't brasscap sensitive. Spelling and everything. This is still America and we have a right to express our opinions. It isn't Mexico yet?
    Go Netflix, Blockbuster and all the others. Just do the best that you can.
    Chill out Dude....................
    moocowgal (Junior Member) 11 April 2006 20:04 Send private message to this user   
    Zippy, it's not a matter of telling 2 double sided disks apart. I rented The Dukes of Hazzard from Blockbuster which sends out 2 sided disks. One side of one of them was damaged so I checked out Netflix to try to rent the same disk from them. That's when I found out that Blockbuster sends out double sided disks and Netflix has what they call rental versions. The disks are numbered and there are twice as many of them. They are labeled one sided disks and if you make the comparison you see that each disk represents one side of the double sided disk you get when you rent from Blockbuster. Hope that clarifies things for you. lol
    Plasmon (Newbie) 14 April 2006 18:57 Send private message to this user   
    I have to agree with ALL persons decimating netflix. I have been a
    member of netflix for 3 months. For the first 2, they sent me the
    desired DVD's accoring to my "contract" (2 at a time, NO LIMIT), and
    they were (I state WERE) reliable. HOWEVER, once the third month rolled around, they started "throttling" my account, ie. would acknowledge receipt of the two returned, but would only ship one.
    and then after a two day wait would state that the next one would ship. When I complained, I just got more of their BULL S@^t stating that certain DVD's are on a "on call waiting status". What a bunch of CRAP. I even made complaints of "Bad" dvd's and they delayed the shipment of those also. Now, I get the crap of (remember they acknowledged receipt of my last two dvd on 4/11/06) they stated that the next dvd's would be shipped on 4/13/06. One of them and the other was supposedly shipped on 4/12/06 with a arrival date of 4/15/06. NOW, just what do you suppose is happening??? Obviously they are delibertaly throttling anyone that wants to watch over 12 dvd's a month. So much for their "within 1 business day" crap.
    Additionally, they have the gall to send me an advertisement asking me to upgrade to 4 at a time, for 23.95 (US) plus taxes, 5 at a time for 43.95 (US) a month, and 6 at a time for 53.95 (US) a month. Just what do you think would happen if I tried those others??????
    Thanks but to NETFLIX, I say F$%K you. I am changing to a different DVD on-line service.
    As a disabled vet. I find that this is especially discriminatory, but to ALL others, it is also discrimation BIG TIME!!
    Plasmon (Newbie) 14 April 2006 19:16 Send private message to this user   
    Oh My Brasscrap is realy "a lawyer".
    The moral of this story? 1- Quitcherbellyaching and be glad that someone buys all those DVDs and rents them under reasonable conditions; and 2- Don't get the lawyers involved! I know. I'm a retired lawyer!
    He/She seems to be oblivious to the stated "terms of agreement/contract" that people sign when subscribing to NETFLIX.
    Or for that matter any other DVD service. What NETFLIX has done is change conditions "without" notification. AND they have changed the rules of "unlimited".. Well maybe Brasscrap needs a "real" reality check.
    dmgreen (Newbie) 14 April 2006 23:46 Send private message to this user   
    I believe you have it right "Tashacat" You can still air your differences and always seems people like "Brasscap" has to tell everybody else how stupid you sound!! Now him/her should no all to
    well if they were really a lawyer that there is still that freedom of speech in the good old USA. Now I would like to quote "Brasscap" on degrading other people and there writing & spelling skills!!
    "How long does this take? Your guess is as good as mine as computerization is taking over from warm bodies who usually can't read or make chane anyway. A good many of you writing to this newsletter can't spell worth jack anyway!"
    Now as you can see if you read what he wrote he misspelled the word
    "Change"!! Now being a ex-lawyer he probably didn't have his para-legal sec. write it for him!! So before you judge others you better judge yourself. If this thread on Netflix isn't for airing our complaints most of us wouldn't be here, I know i'm not looking for legal help I'm just wondering if others have had the same problems as I have with the service of Netflix nothing more nothing less.
    Mez (Senior Member) 16 April 2006 9:34 Send private message to this user   
    Just a worst case example of what "they" do. I do not differentate between them. They have the same tactics except BB does keep the scratches down much better than Netflix. Anyway, last Saturday I put an envelope with 2 disks into the mailbox at the postoffice that has their PO box. This means they got it Saturday or Monday morning at the latest. They claimed they got the one on Wed. but have not claimed they have gotten the other after a week. If anyone can say this is anything but way wrong speak up. Mind you I will keep the service because mail order is still the best value. What I am saying is they purposely ignore their own contract. Any business that will actually give you unlimited DVDs for 15 USD/month would really take business away from the two giants. Of course, the giants would be forced to do better or lose everything.
    rocky999 (Junior Member) 18 April 2006 6:37 Send private message to this user   
    My latest update - so far for April, Netflix has sent me 14 discs, including Hostel, which just came out. It's only the 18th of the month so I expect to hit around 17 to 20 disks this month.
    leia176 (Junior Member) 18 April 2006 14:16 Send private message to this user   
    Well, Rocky999, you are just special, I guess. Hope it stays that way for you.
    rocky999 (Junior Member) 19 April 2006 2:45 Send private message to this user   
    Thanks Lei176, I hope so too!
    zero269 (Newbie) 20 April 2006 23:33 Send private message to this user   
    My 2 Cents!
    In defense of Netflix . . . (my #1 contributer off & on for the past couple of years), has been both good and bad to me. More Good though.
    As for Blockbuster . . .

    I use the In-Store Movie Pass. I'm on the 3-at-a-time unlimited. When I first started, I was there more than most of their employees! They know me too well, and every Tuesday, they hold the new releases for me (of my choice). $38/mo. after taxes, for me, is worth it.

    I get ALL the New Releases every Month. My minimum is 12 NR's + some per month - not to mention pretty smiles and club invites every so often! :) Let's calculate for a sec. . . (NR's at WalMart $16 each! x 2 + tax is just a couple of dollars less than I pay now . . . Over 4k in my collection now, not bragging, it's hard work, and lot's invested

    My advise . . . become a NEW online member every so often if you really think the "throttling" is affecting you. (totally new name ofcourse, or you'll get the "Welcome Back, John!"

    I remember when you could do the 2 free weeks, upgrade to 8-at-a-time the day you were billed, then 5 more were sent out the next day, and cancelled before the 8 dvd's billing cycle. . . and start all over again (John Doe). over 60 a month I averaged for about 6 months . . . then I had to go back to work. I guess somebody let the cat out of the bag recently, because that no longer works.
    Boo-Hoo! :(

    My Final Note . . . The US Post Office and the Netflix/Blockbuster distribters in your area, route, etc. play a large factor in all of this, so don't be too distraught with delays. Cancel if you are unhappy . . . but be sure to complain aboout it.

    Okay, I'm off my soap box now. I got to get back to figuring out my problem with HOSTEL.

    ZERO
    Mez (Senior Member) 21 April 2006 3:08 Send private message to this user   
    Great advice Zero!

    I have used the instore pass but after 6 months I was able to exhaust 2 stores of anything my family wanted to see. Now I just use the weekly coupon and the in store power buyer or rewards system.
    How you change your identity with BB? I tried to do that and was foiled. Actually, now that I think of it that was not on line that was the store card which they want a drivers license.

    Anyway, how you you store your disks? I just use the paper sleeves. Anything more gets too bulky. All my disks go into the paper sleeves even the non back up disks. The boxes are too bulky. I have a few hundred of those as well. I prefer the foil disks if I can get them for a bargain ($10 or less depending on the movie). The foil disks last forever and I do not mind paying a reasonable price for a good movie. I used to keep them in old 5.25 floppy disk boxes that would hold about 25 disks. Now I just stack them in no order. I have kids who disrupt any of my ordering systems and my wife will not let me beat them so I have given up.
    rocky999 (Junior Member) 21 April 2006 4:36 Send private message to this user   
    I think Zero's comment about post office, etc. are very true.
    I've been working overtime lately so as I pass a Post Office on the way to work, I always drop off my disks in the box outside the PO before the 6:30 am. pickup and Netflix always checks them in the next day. I also took some other advice I saw in this thread and now I make sure that the bar code shows through the opening in the back of the envelope.
    khlockett (Junior Member) 21 April 2006 20:56 Send private message to this user   
    well i just got done reading everyone's comments...my three cents is Netflix is better for me due to the fact their center is in OKC where I reside. BB is in dallas. I get 16 a week no problems for last 5 months. OK my three cents are over....good night, good luck
    aabbccdd (Inactive) 21 April 2006 21:01 Send private message to this user   
    16 a week??? dont you mean 16 a month ,that would be 64 a month and i was getting no more than 12 from the idiots at netflix (my account being tagged as to high of a turnover rate)

    Antec Overature ATX Quiet Media Case w/ TruePower550-Watt/ASUS A8N32-SLI Deluxe Socket 939/ Seagate160GB Barracuda/ ATI-Radeon-X850 XT Platinum/ CORSAIR XMS 2GB (2 x 1GB) DDR SDRAM Unbuffered DDR 433(PC 3500)/AMD Athlon 64 4000+ San Diego 1GHz HT/6 Fans/2-Plextor PX-716A Drives/Lite-On SHW-160P6S/View Sonic-VP2030b 20.1"LCD 1600x1200 res.8ms respone time
    handsom (Senior Member) 25 April 2006 11:55 Send private message to this user   
    It's really crap that they can advertise unlimited rentals and then tag someone for using too many. How is that okay? They're advertising unlimited, but as soon as you use a lot; they limit you.

    I found a little trick to use BB online for free. (One of the perks of working for an evil corporation for some years) But I would never suggest either service in reality for most people.

    Bottom line, find a good rental place near your home, and stick to that. Immediate service, no limits. Not the greatest selection, but if you really want some odd stuff; just list all of it, and do a trial just for those; that should satisfy your needs, unless you're a big anime freak like me. And online services SUCKED for that. BB sent me disc 2-4 of burst angel before sending me disc 1 which was bad. I sent it back, and they refused to send a replacement because now my subscription was up; and they wouldn't send a replacement even though; it was ordered, received, sent back and recieved while still under subscription. They had it a full two days before my subscription ended, and refused to send replacement. I worked for them, but this was just ridiculous. Due to the nature of those services; I can see how that happens, and I doubt it's exclusive to BBonline.

    I still say store passes are better; you get instant gratification, you talk with REAL people, and you get to browse for what you want THAT minute. It's perfect.
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