Rated 'R' For (Un)Restricted Competition

Law360, New York (February 7, 2012, 6:28 PM EST) -- Netflix Inc. began renting and selling DVDs online in 1997. By 2000, Netflix stopped selling DVDs, limiting its business to renting DVDs to subscribers for a monthly subscription fee.

Netflix faced little to no competition in the online DVD rental market until 2003, when Wal-Mart Stores Inc. and Blockbuster Inc. began offering their own online DVD rental services at subscription prices lower than those of Netflix. This increase in competition led to a pricing war among the three companies.

By October 2004, Netflix was the industry...
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