Are you a current or former Netflix (Nasdaq: NFLX) subscriber? If so, you'll be getting a piece of the $27.5 million Walmart has agreed to pay to settle allegations it and Netflix worked in concert to drive up prices to rent or buy a DVD.
But, don't get too excited... your payout is likely to be $1--or less-and will be offered to anyone who's subscribed to the service between May 9, 2005 and Sept. 2, 2011. The actual final number, payable in cash or Wal-mart gift cards, will depend on how many subs, who have until Feb. 14 to opt out of the settlement, accept it and how much of a chunk the attorneys take.
The lawyers, of course, are likely to see a bigger payday. They're asking a federal court to pay them $6.9 million of the settlement, 25 percent, as well as $1.7 million in costs.
The settlement, approved in September, goes to a U.S. District Court judge March 14 for final approval.
The case was based on Walmart's decision to abandon the DVD-by-mail rental market in May 2005 and turn its subscribers over to Netflix. Netflix, in turn, agreed to promote Wal-Mart as a place to buy DVDs.
Netflix, meanwhile, is set to go to court Jan. 23 to fight the allegations, unlike Walmart, which decided to settle the suit quietly without admitting wrongdoing.
- see this AP article
Walmart puts Vudu on homepage to drive streaming business