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Video Store Lawsuit Dismissed

| Written by Stacy Mitchell | No Comments | Updated on Aug 1, 2002 The content that follows was originally published on the Institute for Local Self-Reliance website at http://www.ilsr.org/video-store-lawsuit-dismissed/

A federal judge has dismissed all charges in the antitrust case brought by three independent video rental businesses against Blockbuster Video and several major Hollywood studios. The defendants were charged with price discrimination and conspiracy to prevent independent stores from gaining access to the same revenue-sharing deals available to Blockbuster.

In a move that surprised attorneys on both sides, the judge ruled that there was insufficient evidence of conspiracy and a link between discriminatory revenue-sharing deals and the demise of the independent stores.

Two studios, Warner Bros. and Metro-Goldwyn-Mayer Inc., had already reached a $15 million settlement with the plaintiffs.

Since the lawsuit was initiated three years ago, less expensive DVDs have displaced VHS and given independents access to more equitable pricing.

 

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About Stacy Mitchell

Stacy Mitchell is a senior researcher with the Institute for Local Self-Reliance, where she directs initiatives on independent business and community banking. She is the author of Big-Box Swindle and also produces a popular monthly newsletter, the Hometown Advantage Bulletin.  Connect with her on twitter and catch her recent TEDx Talk: Why We Can’t Shop Our Way to a Better Economy. More

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