Walmart teams with Netflix

[thirsty moore]

LOS ANGELES (Reuters) - Netflix Inc., the online DVD rental company, and Wal-Mart Stores Inc. said Thursday they have struck a deal to co-promote DVD sales and rentals, with Wal-Mart shutting down its online rental service to concentrate on DVD sales.
 
 http://money.cnn.com/2005/05/19/technology/personaltech/walmart_netflix.reut/

[walkonby]

now, if walmart will just shut down period.
 
 though, i feel it would cripple our economy if it did, seeing how they are bigger than our government now.

[vansmack]

After I downloaded "Revenge of the Sith" last night, I read this and thought to myself, how is Netflix ever going to compete with Video on Demand?

[sonickteam2]

i dont like this.
 
  i dont care whos really buying who here, I dont wanna give business to anyone who teams up with them.
 
   I think i will be cancelling soon.  I am getting DirecTV this summer anyway. (who have probably already teamed up with WalMart somehow!)

[thirsty moore]

I was considering Netflix but have decided against it due to this partnership.

[sonickteam2]

Originally posted by econo:
  I was considering Netflix but have decided against it due to this partnership.

bravo, you probably wont be alone.  suppose i should sell my stock too seeing as how it jumped 30 percent!

[jkeisenh]

honestly, this pisses me off.  they're such a f(*in disease.  they're eating up more and more of our economy.  it's disturbing.
 
 i've had netflix since 2001.  but it ends here.

[joz]

you guys are so ridiculous. canceling a netflix subscription because they made a deal with wal-mart!?!?  would you have rather seen blockbuster make such a deal and completely obliterate netflix, limiting future dvd rentals to "wholesome family entertainment"? netflix was smart to make this deal. besides, it's a nonexclusive agreement and netflix can do the same with Amazon or whomever in the future. personally, i don't care for wal-mart, or its business practices, but netflix is simply trying to stay competetive with blockbuster, the mafioso of movies. who can blame them really?

[vansmack]

Originally posted by chimbly sweep:
  honestly, this pisses me off.  they're such a f(*in disease.  they're eating up more and more of our economy.

Actually, in this case they've conceeded their DVD rental business to Netflix in exchange for Netflix promoting Walmart's DVD sales.  One could actually argue that for once the little guy won.

[vansmack]

Originally posted by joz:
  but netflix is simply trying to stay competetive with blockbuster, the mafioso of movies. who can blame them really?

Wow - somebody else does get it!  Cheers Joz.

[sonickteam2]

Originally posted by vansmack:
  One could actually argue that for once the little guy won.

one could argue against that point too.  I would somewhat agree with both.

[thirsty moore]

Will this promotion affect the range/variety of movies carried?

[vansmack]

Originally posted by sonickteam4:
  one could argue against that point too.  I would somewhat agree with both.

Seeing as how Netflix gave up the sales business years ago, and focuses solely on rentals, I'm not sure how.  Getting the largest US Retailer to conceed their online DVD rental business in favor of yours is a victory.
 
 As joz pointed out, if it had been Blockbuster and Wal-Mart that teamed up, this post would be twice as long and twice as "loud" as it would have meant the end for Netflix.

[Venerable Bede]

what's not to understand?  walmart realized that they cannot compete against netflix and blockbuster, so, they concede to netflix, who just has to say, oh, you can buy this on wal-mart.com.  so now it's netflix against blockbuster.  to cancel one's netflix subscription because of this?  man. . .get off your high horse.

[vansmack]

Originally posted by econo:
  Will this promotion affect the range/variety of movies carried?

No.  Netflix assumes Wal-Mart's DVD Rental subscribers in exchange for promoting Wal-Mart as the place to buy DVDs.  It's non-exclusive, so if Wal-Mart doesn't carry a particular DVD, there is nothing to prevent Netflix from referring you to a different online store to buy the DVD.  But who uses Netflix to buy DVDs anyway?
 
 This will in no way affect the movies offered by Netflix.