Russian users of Netflix have filed a class action lawsuit against the video service.
As Vedomosti writes, the applicants demand the restoration of access to the platform subscription, which was limited in March against the backdrop of the start of Russia's special operation in Ukraine.
“Users in the lawsuit demand to restore access to content, renew the subscription, and now the issue of moral compensation for violation of consumer rights is being discussed with all participants in the class action lawsuit.
How much they consider it possible to demand for recovery from the service and how they will evaluate moral suffering is now in the process of discussion.
Subsequently, the lawsuit will be clarified in this part, ”said Yulia Aleinik, head of the Destra Legal lawyers group, representing the interests of the participants in the lawsuit, in an interview with RT.
She emphasized that in her lawsuit, "users first of all proceed from a violation of the user agreement."
“When users register on the Netflix website, they agree to the terms of use of the service.
In particular, the user agreement provides for automatic renewal of the subscription if the user himself has not refused.
By unilaterally terminating this subscription, the service violates both its own agreement, that is, the terms of the contract that it itself came up with for its consumers, and Russian law, which by default prohibits the unilateral refusal to fulfill the contract with consumers, ”says the lawyer.
Aleinik noted that, according to the user agreement, Netflix is obliged to notify its subscribers of any changes 30 days in advance, but they learned about the suspension of the site in Russia and the termination of subscriptions the day before - "the deadline was violated by the service itself."
“This is the first thing we proceed from in the lawsuit, and the second is the concept of a public offer.
A public offer in accordance with Russian law is an institution according to which anyone who agrees to the terms of this offer has the right to conclude a contract.
The service continues its work, it’s just that access was terminated for Russian users, which is also a violation of the provisions of the law on that very public offer, ”explains Yulia Aleinik.
According to her forecasts, the probability of meeting the requirements put forward is high, since there is a fact of violation of the contract, "which is a good reason."
© Shot from the film "Cuties"
As a result of the suspension of Netflix in Russia in the first quarter of 2022, the video service lost 200,000 subscribers, while their number is expected to grow by 2.5 million.
According to a report published on April 19, excluding losses in Russia, Netflix's customer base increased by only 500,000 subscribers in three months.
According to forecasts, the video service will lose another 2 million subscribers in the second quarter.
After the release of the report, Netflix shares fell more than 35%.
The company lost $54.4 billion in market capitalization overnight, the largest single-day drop in its history.
Netflix has already announced some measures aimed at attracting new subscribers.
In particular, the management of the video service is developing a plan to monetize the exchange of passwords.
According to Variety, more than 100 million households have access to the content of the site, while not paying for a subscription - they use other people's data to enter the account.
Netflix has previously begun testing a legal password-sharing system in Chile, Costa Rica, and Peru.
According to the new rules, platform customers will be able to connect up to two additional accounts to their subscription at a price of $2 to $3 per month.
If Netflix introduces such a system worldwide, it will be able to receive an additional $ 1.6 billion a year.
In addition, the video service may launch a cheaper ad-supported subscription.
Currently, viewers pay for access to the site's content from $9.99 to $19.99 per month.
Netflix also intends to attract new users of video games.
The intention of the company to enter a new market became known in the summer of 2021.
Then it was reported that it was planned to release games related to the original films and series of the video service, as well as independent projects.
Access to them will be provided as part of the main subscription to Netflix.
According to The Washington Post, the company has hired several executives for its gaming division over the past few months and is betting big on this direction.
At the same time, Netflix shut down its animation division, with Phil Rinda, director of creative development for original animation projects, and several of his subordinates fired.
According to TheWrap, series that have already been released on the video service and have become popular will not continue, and several planned high-profile projects have been cancelled.
Among them is an adaptation of Jeff Smith's Bone comic book series.
Interestingly, Elon Musk found a different reason for the problems that Netflix faced.
According to the entrepreneur, due to the “awakening virus”, the streaming platform is becoming “impossible to watch”.
The video service has indeed been repeatedly criticized for raising controversial topics.
So, the French-made film “Cuties” was released on the platform, which tells the story of the growing up of an 11-year-old girl.
The heroine seeks acceptance from her religious family and dance group.
The tape caused a negative reaction from the audience, and the Parental Television Council
called on the White House to investigate Netflix content that sexualizes children.
The video service has also been criticized for focusing too much on LGBT and racism topics.
According to political satirist Tim Young, the authors of Netflix content do not primarily care about quality, but that this or that project includes a certain percentage of representatives of the LGBT community and different races, and also touches on certain topics.