10 Controversies Netflix Wants You To Forget
7. DVD Throttling
When Netflix started out, streaming was a pipe dream for most media companies who were still trying to get their heads around downloads.
What Netflix did was allow people to rent DVDs without having to go to Blockbuster. Instead you chose what you wanted to watch, had it mailed to you, and then mailed it back within a certain time in order to borrow another. All of this worked because they advertised unlimited rentals for a set price every month.
The company, who would later become synonymous with binge-watching, didn't like that some users could return their movies quicker to get another one as that affected their profits. Still advertising unlimited rentals, they started the practice of DVD-throttling for their frequent users; delaying their orders so that infrequent users took priority, routing them to other places, and even sending the second movie in a series before the first.
Finding the value they were getting from this service artificially reduced, angry customers first filled forums with their complaints before eventually suing Netflix over their shady tactics. The lawyers in that case took $2.5 million in fees, while affected subscribers got an entire month of upgraded subscription.