Just when it looks like Blockbuster has cornered Netflix, something happens to even up the battle.
In a story from Variety, it seems that "Blockbuster has settled a yearlong patent dispute with rival Netflix over online rentals."
Terms of this settlement weren't made readily available but the "Dallas-based Blockbuster disclosed the settlement in a SEC filing that also signaled changes to its Total Access program linking online and in-store rentals by year's end."
In the original lawsuit, "Netflix alleged that Blockbuster had infringed on Netflix's patents for online rentals. Blockbuster countersued, accusing Netflix of seeking a monopoly in the online rental market."
All of the litigation has now been dismissed.
Sadly for Blockbusster, they expect "to have lower earnings than is required by a consortium of its lenders due to heavy investment in the Total Access online program. The company is therefore seeking to amend the credit agreements to allow for lower EBITDA, according to the SEC filing."
Blockbuster has put a great deal of monetary resources into its Total Access program and they plan "to make unspecified 'modifications' to the program by the end of the year."
Sadly, for Blockbuster Total Access users that means that they are going to receive "a price hike."