Rent From Netflix? Now Your $$ Will Also Go To Wal-Mart

[matcom]

<snip>

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.

Shares of Netflix (Research) jumped 30 percent in premarket trade from a close of $15.50 on Wednesday on the Nasdaq.

Under the agreement, Netflix will promote Wal-Mart (Research) DVD sales to its 3 million subscribers, and Wal-Mart will offer its online customers the opportunity to sign up with Netflix at their current subscription price for a year.

Wal-Mart is the world's largest DVD retailer, and Netflix is the world's largest online DVD rental service.

Wal-Mart Online, in an advertisement that appeared early Thursday on its Web site, said the company will not accept new members and offered a link to Netflix, where Walmart.com customers can sign up for the DVD rental service at their existing Wal-Mart rates for one year.

The Wal-Mart Web ad also provided a link to allow its subscribers to transfer their services, including request lists for specific DVDs, to Netflix.

Netflix will promote Wal-Mart's online DVD rental business both online and in mailers sent to its subscribers.

The partnership radically changes the competitive landscape for the nascent online DVD rental industry pioneered by Netflix, which more recently has been struggling to compete against larger rivals such as Wal-Mart and Blockbuster Inc.

Online retail giant Amazon.com Inc. (Research), which launched an online DVD rental service in Britain last year, has also been expected to enter the U.S. rental market.

Wal-Mart launched its online DVD rental service in late 2002, but it never promoted the service heavily. Its departure from the fast-growing online rental industry leaves only Netflix and Blockbuster, which has reported having more than 750,000 subscribers.

http://money.cnn.com/2005/05/19/technology/personaltech/walmart_netflix.reut/index.htm?cnn=yes

[Modem Butterfly]

1. Fuck. I really enjoyed Netflix, too...

[xultar]

2. no shit me too. how can my money go to wal-mart? I joined way before

this thing got started.

Can I keep it paw? Please?

[Lannes]

7. I dont rent anymore

Im building a collection.The way this country is going you never know what movie is going to be banned or edited in the future by some theocrat.The Supreme court just ruled that a Utah company can sell edited versions of movies without the filmaker's or studio's consent.Some day that may be all thats available,watered down PC movies.

[movie_girl99]

18. we buy movies as well

and have made a list. We trade with other people but keep track of who we lent them too. Its a great way to see movies without paying BB.

[taught_me_patience]

27. thanks for providing me a job :-)

I work with DVDs but have never bought one for myself.

Netflix is just a drop in the DVD market.

[movie_girl99]

33. I'm not sure what you mean

did i give you an idea for a business or do you not agree with buying movies and loaning them out?

[taught_me_patience]

36. what I mean is...

that DVD rentals barely dent the overall DVD sales for our company. Most of the revenue is generated by people buying DVDs at wal-mart, target, etc. So if people rent DVDs instead of buying them, then we make less money and I probably don't have my job (predicting DVD sales). So thanks for buying movies :)

[movie_girl99]

37. right..got it n/t

[LynneSin]

10. Cancelling my account as we speak

I love netflix but refuse to give Wal-Mart moneyh

[sakabatou]

31. Damn.

It was the only place to get my animé fix... untill I get my high-speed line up...

[LynzM]

3. Maybe I'm missing something....

I don't see how the money is going to Wal-Mart. They will market to Netflix subscribers, ok, still your choice to buy from Wal-Mart or not. And the Wal-Mart online customers will now become Netflix customers, or am I misunderstanding?

[ET Awful]

4. Actually, Wal-Mart customers are being transferred to Netflix

Not the reverse.

[matcom]

5. but you KNOW there is a referral fee

for this "merger"

[ET Awful]

8. Actually, the way I understand it from multiple reports is that Netflix

is buying out Wal-Marts on-line DVD rental business. In the long run, they are taking money away from Wal-Mart becaue the continuing subscription rates are going to Netflix, not Wal-Mart.

[RebelOne]

34. You are right. Wal-Mart will not benefit.

Everyone who is canceling is just cutting off their nose to spite their face.

[Wickerman]

6. Damn

wish I would've sold my soul to Walmart for 12.97 a month since NetFlix sold it without me knowing for 19.97 a month. I friggin' hate Walmart and the Walmartization of the world.

I wonder if that means that they will start censoring what I can order from them?

edit: Preemptive note - I realize that NefLfix absorded the Walmart base - however, I also know Walmrt will influence Netflix heavily.

[Cha]

9. I just posted this in LBN..

but I want it here, too! This is Serious!

"Shit! I Love my netflix!"

"Don't know what to do..I hate wal-mart. If netflix offers me any wal-mart research dvd sales..I will tell them to keep their offers because I go out of my way NOT to shop at wal-mart(a company that among other things..gives $3 million dollars a year to the idealogical bush agenda!!)."

"What's a flick buff to do? " :(

[Wickerman]

11. My BiL does this service, I think

http://www.dvdavenue.com/

He swears by it, but damn, the selection at NetFlix would be hard to give up.

[Cha]

12. Thanks...it's $19.95 a month..

netflix is $17.95 a month and I adore their format and as you say "selection".

Blockbuster is only $14.95 a month but their format sucks compared to netflix.

I think I'm going to wait a while and see what happens instead of cancelling them today.

[CBGLuthier]

24. Blockbuster is rasing their price

Just announced today that Blockbuster is raising their price to be the same as NetFlix's.

It seems Carl Icahn was pissed at them for engaging in a price war.

As to the whole Netflix Walmart thing, here is my take on it.
Walmart was losing money trying to compete and is giving up. They worked out a deal with NetFlix that will give them some referrals for their merchandise and NetFlix will take over their customers.

I don't see any way this should be viewed as Netflix money going to WalMart. I would also bet that within a year the referrals from NetFlix will stop.

[Cha]

30. Thanks, I appreciatate all this

feedback cause I take my netflix very seriously. I have a four day turn around with them. I mail mine back and they mail me three more..all with four days.

That's 21 very interesting flicks a month that I get for $17.95.

I have 84 in my Queue which includes a lot of British television and movies they don't have in my video store. I still shop there too for the newer ones..and they are owned and operated by Dems.:popcorn:

[Pacifist Patriot]

I had a really BAD experience with Netflix about 3 years ago.

I love Blockbuster.com. Haven't had a problem yet.

[gardenista]

21. Have used Netflix for 2 years, without ONE problem.

And I gladly give my money to a blue company.

[vi5]

35. Actually I had bad experiences with them back then too BUT...

I re-joined to give another shot about a year ago and have had nothing but excellent service and selection since.

[pdx_prog]

13. I tried Netflix....

but it was like a DVD marathon trying to watch enough to get your money's worth, and trying to watch three in time to get three more for the weekend.....drove me nuts....

I have to say though that their selection is excellent.....almost everything you can think of...

[Pacifist Patriot]

14. I don't watch television and work out virtually every night

on my elliptical machine in front of half a movie. Otherwise I would whole-heartedly agree with you. If you feel like you're pushing to get movies watched it is definitely not a good fit!

[dubyaD40web]

15. I got rid of Netflix a couple months ago.

I was considered a "heavy" user of theirs and they slooooowed down their shipping of DVD's my way. When I first signed up, I got at least 9 DVD's a week because I live next to their distribution center. At the end, I was only getting 3 a week.

It was a hard decision to drop them because they're a Blue company but I want my movies. So, I signed up for Blockbuster's in-store "Movie Pass." 3 DVD's out at a time, return them to the store, and take 3 more. Since Blockbuster is on my way home, I'm getting 3 DVD per day.

[LynneSin]

16. I've heard others complain of their slow down

it was even happening to me and I don't think I was that heavy of a user. But I was getting 3 movies a week and within 2 months it seemed to take forever for my movies to return to the point of getting 3 sets of 3/month instead of the 4-5 sets of 3 per month.

[RebelOne]

17. I don't give a shit. I am not canceling NetFlix.

I have never had a problem with them and their turnaround is very quick.

[GalleryGod]

22. I'm with Reb on this one!

Nary a problem with Netflix!

i'm keeping them folks!:hide:

[lazarus]

19. Damn them

If I see advertising for Wal*Mart, I'll be forced to buy from them, since I have no self-control.

Bastards.

:eyes:

[gardenista]

20. Reed Hastings, founder of Netflix, is a *huge* supporter of Dem causes.

Plus, this share of the market puts them head-to-head against Blockbuster, headed by John Antioco, whom, according to newsmeat, is just a big a Rep. http://newsmeat.com/ceo_political_donations/John_Antioco.php

Folks, this is a GOOD thing for a blue company, and it deserves our support.

Once again.

Netflix earning profits Walmart used to earn. Good.

Netflix competing with Blockbuster. Good.

Walmart getting a cut? In the long run, not so bad.

[Placebo]

23. I wish people would calm down...

Netflix is a solid blue company contributing 100% to Democrats. The benefit to Walmart in this deal is negligible at best.

[Lorien]

25. Exactly Placebo-Netflix is still Blue, and I fail to see how I'm "giving'

my money to Wal-Mart by using their service. Netflix is taking over Wal-Mart's service while giving them ad space-seems like Netflix wins the most from the deal.

[crispini]

28. You are both quite correct.

Netflix is definitely gaining more out of the deal. I fail to see where ANY money at all will be going to Wal-Mart. It seems to me a lot of people are jumping the gun by cancelling Netflix.

[Halliburton]

32. I agree...

This is being blown out of proportion. Blockbuster is far worse than Netflix.

[Bullwinkle925]

26. Now I feel better about cancelling my Netflix membership.

Thanks for sharing this bit of news.

[nykiera]

29. Keeping Netflix

Maybe if they start censoring I will cancel, but see no reason to cancel at this time.

[Aiptasia]

38. I knew netflix was too good to be true

[LynneSin]

39. There are other options to Netflix - try CineGreen

http://www.greencine.com/main

I just signed up for it. I don't care how blue the CEO is, I don't want to see a fucking Wal-Mart banner show up everytime I go to Netflix and pick out a movie :grr:

Green Cine a few dollars more (I ended up with the 2/$14.95 a month plan which works for me) but they have a better selectioin of the Indie, Foreign & Alternative flicks that I enjoy watching. And if you're an Anime fan this is a great site. But I confess they've had every movie except 1 that I was looking for.

I like dealing with Independants

http://www.greencine.com/main