Media Biz Cheat Sheet: Sony Corp. Makes Move to End Class-Action Lawsuits, Barnes & Noble Buys Borders Assets
Hit by various class-action lawsuits, Sony Corporation (NYSE:SNE) hopes to put an end to litigation simply by amending the terms of its licensing agreement with consumers to explicitly bar class action lawsuits in favor of binding arbitration. Sony owes the ability to include a binding arbitration clause in a licensing agreement to the U.S. Supreme Court, setting the precedent in a narrow 5-4 majority ruling in a case between AT&T Mobility (NYSE:T) and Concepcion in April.
Barnes & Noble (NYSE:BKS) and other bidders have bought the intellectual property of Borders Group Inc. for $15.8 million in a bankruptcy auction. Which parts each bidder bought will be disclosed after the bankruptcy court approves the sale on September 20, when it will become part of the public record. In August, the Books-A-Million (NASDAQ:BAMM) bookstore chain paid $934,209 to buy the leases of 14 Borders stores around the country.
Check Out: Air France-KLM Makes $27 Billion Order
After Netflix (NASDAQ:NFLX) cut its subscriber estimates for the third quarter yesterday by 1 million, the stock is continues to sell off. Since Netflix announced a 60% price hike on one of its most popular plans in mid-July, its shares have declined more than 40%. Trading at around $160 today, Netflix shares are down more than 8% for the year, though still up 300% in the past two years. Now that the company’s DVD deliver service is significantly more expensive, many subscribers are instead opting to use CoinStar’s (NASDAQ:CSTR) RedBox DVD rental vending machines, which charges $1 per night as opposed to Netflix’s $7.99 a month.