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Thursday, March 4, 2010

Subscriber Sues Netflix and Warner Bros. Over New Rental Policy

Restraint of Trade?

Wait 28 days to rent a hot movie just out on DVD?

No way, argued a Netflix subscriber, who sued the films-by-mail rental company and Warner Bros. on Thursday.

Susan Uman of Manhattan argues a deal worked out between Netflix and Warner Home Video is an old-fashioned "scheme to restrain trade" that has to stop, according to a class action lawsuit filed in Manhattan Federal Court.

The two companies agreed in January that Netflix customers would not be able to order Warner Bros. DVDs until a full 28 days after the films went up for sale or rent at other locations. The move was seen as adding to Warner Bros. bottom line because it forces viewers who want to see the movie sooner to buy it or rent it from costlier companies.

Two Warner movies - "The Informant!" and "The Box" - were released on DVD Feb. 23, but won't be available to Netflix subscribers until March 23, the lawsuit says.

The pact, Uman argued, decreased the value of her Netflix subscription because the Warner Bros. films are now off limits for a month. The lawsuit wants the practice to stop.

Warner Home Video and Netflix officials could not immediately be reached for comment.

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