Class action settlements as marketing outreach

by Walter Olson on September 27, 2011

At Paid Content, Jeff Roberts reports that Wal-Mart may have found a clever way to pitch its services at Netflix’s streaming subscribers, namely by settling a class action lawsuit to which they are party:

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—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.”

{ 1 comment }

1 Bob Roberts 09.27.11 at 7:00 pm

“Defendant is hereby ordered to jump in the briar patch”

“No, Mr. Judge, anything but that!”

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