Wal-Mart ends Web DVD rentals, promotes Netflix
Hello All,
Wal-Mart Stores Inc. on Thursday said it was closing its online DVD rental business and would direct its customers to Netflix Inc., offering the struggling company a lifeline.
The Wal-Mart partnership gives Netflix exposure to 500 million visitors who visit the walmart.com site every year, although the megaretailer has struggled to attract DVD renters.
Shares of Netflix, which pioneered online rentals, jumped as much as 24 percent and touched their highest level since rival Blockbuster Inc. (BBI.N: Quote, Profile, Research) launched an online service. But they lost much of their initial gains, ending up 4 percent.
The Wal-Mart-Netflix deal shrinks the competitive landscape for the nascent online DVD rental industry to just two players.
Netflix and Blockbuster have been locked in an expensive price war since last fall, when Blockbuster launched its online service and twice undercut Netflix's subscription price.
"This is big," Fulcrum Global Partners analyst Stacey Widlitz said. "That's pretty significant for (Netflix). I would say they are gaining back some traction in the fight with Blockbuster."
Under the agreement, Wal-Mart, the world's largest retailer, will offer its online customers the opportunity to sign up with Netflix at their current monthly subscription price of $12.97 for a year, and Netflix will promote Wal-Mart DVD sales to its 3 million subscribers.
Blockbuster struck back by offering Netflix and Walmart.com customers switching to Blockbuster's online rental service two free months of rentals plus a free retail DVD of their choice.
Customers changing to Blockbuster Online would be able to subscribe for the next year at their current walmart.com or Netflix price.
Netflix charges $17.99 per month for renters to keep three DVDs at a time. Blockbuster charges $14.99 for the same thing but this week began testing a fee of $17.99. Walmart.com's customers have paid $12.97 to take out two DVDs at a time.
In a statement, Blockbuster Chief Executive John Antioco reiterated his commitment to aggressively growing the online business to catch up with Netflix.
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Talk to ya soon,
Donnie Hoover
www.cheap-dvds-advisor.com
Your One Stop Source For Cheap DVDS !!
DVD Reviews
Wal-Mart Stores Inc. on Thursday said it was closing its online DVD rental business and would direct its customers to Netflix Inc., offering the struggling company a lifeline.
The Wal-Mart partnership gives Netflix exposure to 500 million visitors who visit the walmart.com site every year, although the megaretailer has struggled to attract DVD renters.
Shares of Netflix, which pioneered online rentals, jumped as much as 24 percent and touched their highest level since rival Blockbuster Inc. (BBI.N: Quote, Profile, Research) launched an online service. But they lost much of their initial gains, ending up 4 percent.
The Wal-Mart-Netflix deal shrinks the competitive landscape for the nascent online DVD rental industry to just two players.
Netflix and Blockbuster have been locked in an expensive price war since last fall, when Blockbuster launched its online service and twice undercut Netflix's subscription price.
"This is big," Fulcrum Global Partners analyst Stacey Widlitz said. "That's pretty significant for (Netflix). I would say they are gaining back some traction in the fight with Blockbuster."
Under the agreement, Wal-Mart, the world's largest retailer, will offer its online customers the opportunity to sign up with Netflix at their current monthly subscription price of $12.97 for a year, and Netflix will promote Wal-Mart DVD sales to its 3 million subscribers.
Blockbuster struck back by offering Netflix and Walmart.com customers switching to Blockbuster's online rental service two free months of rentals plus a free retail DVD of their choice.
Customers changing to Blockbuster Online would be able to subscribe for the next year at their current walmart.com or Netflix price.
Netflix charges $17.99 per month for renters to keep three DVDs at a time. Blockbuster charges $14.99 for the same thing but this week began testing a fee of $17.99. Walmart.com's customers have paid $12.97 to take out two DVDs at a time.
In a statement, Blockbuster Chief Executive John Antioco reiterated his commitment to aggressively growing the online business to catch up with Netflix.
To read the rest of the article Click Here
Talk to ya soon,
Donnie Hoover
www.cheap-dvds-advisor.com
Your One Stop Source For Cheap DVDS !!
DVD Reviews
posted by Cheap DVDs Guy at 7:29 PM
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