paidContent reports that Walmart might have scored a marketing coup at Netflix's expense. When Walmart decided to shut down their DVD rental service they started marketing Netflix to their customers, a class action lawsuit was filed, accusing Netflix & Walmart of dividing up the DVD market (Netflix would not sell DVDs and Walmart wouldn't rent them). Netflix refused to settle, but Walmart did and will now be able to send 40 million current & ex-Netflix customers a Vudu offer.
A new court ruling gives Wal-Mart a major boost in its effort to muscle in on Netlix’s streaming subscribers. A federal court in California late last week approved a class-action settlement that requires Wal-Mart to pay out $27.5 million. But here’s the key element of the ruling: Wal-Mart will be allowed to pay the 40 million Netflix subscribers in the form of gift cards for Wal-Mart.com—where there is prominent advertising for Vudu, which rents and sells movies a la carte.
The court ruling is a blow to Netflix, which had earlier blasted the settlement as “the equivalent of a marketing campaign that costs Walmart only 68 cents per potential customer.”
via Inside Redbox.