Netflix and Walmart Under Fire

A lawsuit against Walmart and Netflix was filed in California saying that consumers were hurt because of their monopoly agreement where Walmart removed their DVD rentals and redirected everything to Netflix. Netflix on the other hand, promoted Walmart sending buyers to their site.

This monopolistic partnership has prompted Blockbuster to raise their subscription price to keep at par with Netflix. In the end, consumers were the losers which led to the lawsuit.

Netflix and Walmart could easily lower their prices as they help each other out and I don’t see any reason why they have to increase their prices which led Blockbuster to do the same.

At least, when consumers are concerned it only means they are not downloading pirated copies using their computers.