Print 18 comment(s) - last by Spivonious.. on Jun 29 at 3:04 PM

Blockbuster and Netflix kiss and make up

The online battle between Blockbuster and Netflix has come to an end. The patent litigation the two companies have been involved in since April 2006 ended yesterday -- details of the settlement are considered confidential.

The dispute sparked when Netflix accused Blockbuster of copying its "method for subscription-based online rental that allows subscribers to keep the DVDs they rent for as long as they wish without incurring any late fees, to obtain new DVDs without incurring additional charges and to prioritize and reprioritize their own personal dynamic queue--of DVDs to be rented."

Blockbuster in turn filed a motion to dismiss the injunction brought forth by Netflix and filed an anti-trust case of its own against Netflix.

"As a result of NetFlix's purported monopolistic conduct, Blockbuster may be forced out of the market, which would cede to Netflix virtually complete control of the online-DVD market," said US District Judge William Alsup in August.

Blockbuster added more fuel to the fire during the 2006 holiday season when it gave Netflix subscribers free rentals in exchange for their tear-off address flaps.

"We want these movie fans to experience getting the movies they want without the wait so they never have to be without a movie, just like Blockbuster Total Access subscribers," said Blockbuster Chairman and CEO John Antioco during the promotion.

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RE: No wait?
By omnicronx on 6/29/2007 9:48:20 AM , Rating: 2
i really hate the u.s courts and their leaning to any big corporation, because all this is going to lead to is blockbuster having the entire market as they have just a wiii bit more money up their sleeves.

we all know this is going to lead to blockbuster pushing everyone out of the market and not allowing anyone else in.
if thats not an antitrust concern i dont know what is.

netflix should have had the ruling gone their way as if the roles were reversed it most probably would have. seems like patents these days are only effective for the big companies and otherwise can just be bypassed in a single leap.

blockbuster get your own damn ideas!

RE: No wait?
By Spivonious on 6/29/2007 3:02:20 PM , Rating: 2
Actually, Blockbuster is/was losing money in millions because they couldn't figure out how to compete with Netflix.

I'm glad that they can now offer some serious competition to Netflix. Competition is good for the market.

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