So THAT'S why Netflix stopped selling used DVDs.

[dixiegrrrrl]

"The plaintiffs charged that Los Gatos-based Netflix and Wal-Mart conspired in 2005 to divide the market for selling and renting DVDs in order to reduce competition. The companies formed an agreement in which Walmart.com would stop renting DVDs online, and Netflix wouldn't offer them for sale. The agreement came after Blockbuster began offering DVD rentals online, according to the lawsuits. "

"The settlement Wal-Mart has agreed to is outlined in papers that were filed with the Oakland federal court that is hearing the class-action lawsuit. Wal-Mart will give either cash or a Walmart.com gift card to every “class member” who asks for one, and will spend no less than $29 million and no more than $40 million. The class—which has now been certified by the judge overseeing the case—includes everyone who has paid for a Netflix subscription since 2005. The exact size of the class still hasn’t been determined, but Netflix today has more than 16 million members in the U.S. and Canada. The settlement applies only in the U.S.

The story reports that Netflix will fight the lawsuit because they believe it "lacks merit."

http://www.hackingnetflix.com/2011/01/wal-mart-wants-to-settle-class-action-lawsuit-but-netflix-will-fight-it.html