Netflix Takes Over Wal-Mart DVD Rentals (MERGED THREAD)

Discussion in 'After Hours Lounge (Off Topic)' started by Robert Powers, May 19, 2005.

  1. Robert Powers

    Robert Powers Stunt Coordinator

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    Netflix Takes Over Wal-Mart DVD Rentals

    By MICHAEL LIEDTKE, AP Business Writer 37 minutes ago

    SAN FRANCISCO - Wal-Mart Stores Inc. is turning over its online DVD rental business to Netflix Inc., signaling that the world's largest retailer couldn't beat the Internet upstart at its own game.
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    Shares of Netflix surged after the agreement was announced, rising $4.38, or 28 percent, to $19.88 in pre-market trading.

    Under the agreement announced Thursday, Wal-Mart will offer its existing online DVD rental customers the chance to continue their subscriptions with Los Gatos-based Netflix at their current price for the next year. Wal-Mart also will begin promoting the Netflix service on its Web site.

    In return, Netflix's Web site will remind its subscribers that they can buy DVDs from Walmart.com.

    The companies didn't disclose how many customers Netflix will inherit nor the financial terms of their partnership.
     
  2. Matt Stone

    Matt Stone Lead Actor

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    Good news! God bless Netflix!
     
  3. Paul McElligott

    Paul McElligott Cinematographer

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    Story.

    Good news for Netflix.
     
  4. WillG

    WillG Producer

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    I hope this new alignment between Netflix and Wal*Mart does not cause Netflix to abandon its support for OAR DVDs. I can just see Wal*Mart saying to Netflix "Our subscribers prefer Full Screen DVDs so you may want to offer those instead of Widescreen"
     
  5. RossHy

    RossHy Agent

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    As a Wal-Mart DVD rentals customer, I'm looking forward to going to Netflix. Luckily, I get to keep paying the same price I'm paying Wal-Mart for a year. I just hope I get to keep going on the free one-month trial I got from Wal-Mart. Hopefully, I'll have better luck, too. Out of the three DVDs I've requested and received so far, I've received one intact, one cracked, and one never came.
     
  6. Garrett Lundy

    Garrett Lundy Producer

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    I guess wal*Mart didn't plan for a business model that required its employees to do anything more than act surely to customers. [​IMG]
     
  7. Paul McElligott

    Paul McElligott Cinematographer

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    Since Wal-Mart's service offered widescreen DVDs, I really don't think that's going to be a problem.
     
  8. ElevSkyMovie

    ElevSkyMovie Supporting Actor

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    I don't understand all the gruff about walmart and widescreen. Any walmart I've been to has had both PS and widescreen releases. Widescreen releases are the best selling on Amazon, why would walmart ignore a large portion of the population that wants widescreen? Is walmart just what HTF members like to slag on, like Microsoft is at slashdot.org?
     
  9. Robert Powers

    Robert Powers Stunt Coordinator

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    RossHy,

    If you don't mind me asking what are you paying for the Walmart service and how many dvds can you have out at a time?
     
  10. Jesse Blough

    Jesse Blough Second Unit

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    "I don't understand all the gruff about walmart and widescreen. Any walmart I've been to has had both PS and widescreen releases. Widescreen releases are the best selling on Amazon, why would walmart ignore a large portion of the population that wants widescreen? Is walmart just what HTF members like to slag on, like Microsoft is at slashdot.org?"

    Well, my local Walmart supercenter does carry both widescreen and full screen editions of the new releases (although they put the full screen in the easier to reach shelves, and also they don't carry as many widescreen ones).

    My biggest issue is that they only order additional copies of the full screen editions when they sell out of all the widescreen ones. So they end up with all full screen and no widescreen. This frustrates me because by then they're usually 5 or 10 bucks cheaper but I can't buy them because they're all full screen. So if I want to get a widescreen version, I have to buy it right there and then for full price. I got a strict budget so I really can't buy most stuff at full price. I've stopped buying from Walmart because they've done nothing but piss me off.

    Then again, maybe this is only done in my local walmart. Maybe it's different for others.
     
  11. Brook K

    Brook K Lead Actor

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    Great, now it will take even longer to get my movies from Netflix.
     
  12. Eric Peterson

    Eric Peterson Cinematographer

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    Not everybody buys their movies in the first week, and therefore don't have the option to choose at Wal-Mart. Plus Wal-Mart is very notorious for being self-righteous and deciding which titles are appropriate for people, which is something that I take grave offense to.
     
  13. Jeff D Han

    Jeff D Han Supporting Actor

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    Thanks for the link, Paul.[​IMG]

    I've been a Netflix subscriber for 3 years now, and
    it's been a terrific service. I've never had an issue
    with losing discs, and now I don't have to wait for
    new releases. I hope Netflix can get healthy and not
    be defeated by the Blockbuster subscription service.
    I'm not dumping on Blockbuster- I'm not familiar with
    their online service- I just don't want to see a good
    thing like Netflix go down the drain.
     
  14. Jerry R Colvin

    Jerry R Colvin Stunt Coordinator

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    I signed up with Wal-Mart's dvd rental service nearly a month ago to catch up on obscure recent movies that never played in Louisville. We're talking Young Adam, Code 46, I Capture the Castle, I'm Not Scared, Japanese Story, and The Shape of Things so far... all in widescreen, no problem finding what I wanted, and an average of two movies a week.

    I was satisfied... especially since the first month was free. I hope Netflix can live up to this past month of good service from Wal-Mart.

    Thought you might want to hear from somebody who actually used the service.
     
  15. Phil Crosby

    Phil Crosby Auditioning

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    I have always been extremely pleased with Netflix -- I get the next film in my queue generally within 48 hours of mailing the previous one. I tried Blockbuster and it couldn't compare -- it didn't have the depth of films available and delivery was terrible.

    I hope this only strengthens Netflix.

    Phil
     
  16. Bob McLaughlin

    Bob McLaughlin Screenwriter

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    Frankly I prefer if there is lots of competition to keep Netflix from getting fat and lazy. Competition was the reason that our fees went from 22.99 a month down to 17.99 a month. If another company comes along and does exactly what Netflix does (with the same vast selection) at a cheaper price, I will change in a minute.
     
  17. Jesse Blacklow

    Jesse Blacklow Cinematographer

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    Netflix is the competition, Bob. It was an opportunity to take the rental market away from the 500-pound gorillas, and it's working. And they're far from getting "fat and lazy," ever since the aforementioned gorillas jumped onto the online rental bandwagon.
     
  18. TheLongshot

    TheLongshot Producer

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    I have a hard time believeing someone can undercut Netflix in price, and provide the selection and service they do. From what I've heard, even Blockbuster, who is a much larger company, can't match on either point.

    Certainly, I like seeing competition, but I wouldn't want to see an inferior company lowball NetFlix and drive them out of business.

    Jason
     
  19. AaronMK

    AaronMK Supporting Actor

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    First, I really agree with Jesse that netflix is the competition; it is competion for rentals in general, not just online rentals.

    I don't know about Blockbuster's profitabililty, but have read on many occasions that Netflix is operating at a loss to compete with Blockbuster's online rental service. It is kind of crappy that Blockbuster just copies a great idea Netflix showed could make a viable business and uses their size to attempt to drive them out of the market.

    Neflix's "strategy" of operating at a loss to get a loyal cunstomer base is the same one online reatailers took before the "dot com crash". It is pretty much a question of who can hold out the longest. In Netflix vs. Blockbuster, it would no doubt be Blockbuster, but Netflix really does not have a choice except to play that game.

    Netflix having the support of a company with capital at least comapable to Blockbuster is essential for them to survive that battle. There are many other companies that I would rather they allied with other than Wal-Mart for many of the reasons mentioned above, but this is definetly better than going against Blockbuster alone. Before it was Netflix losing and Blockbuster reigning supreme. Now the worst that can happen is two self-rightous cooperations have devisions operating at losses for a while battling it out. The best case has Netflix operating just as they always have, but with the capital the need to defend against the "500-pound gorilla".
     
  20. Terry H

    Terry H Second Unit

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    Well then, my viewpoint is that you heard wrong. It is true that Blockbuster can't match the selection available from Netflix but my experience is that their service is FAR superior. Blockbuster is cheaper ($15 vs $18), they ship faster and I get more movies per month, plus two coupons per month for free local rentals good for movies or games. As Bob rightly points out, when Blockbuster entered the market at the $15 per month price Netflix was charging $22 for the same service. Blockbuster did me a huge favor. Anyone trying to cast Blockbuster as the big bad bully and Netflix as the plucky underdog should try for a firmer grip on reality. [​IMG] Both companies are out to milk us for all they can get. Neither is the "good guy". I like competition. I especially like price wars. I love that I'm paying Blockbuster $15 for a better service than I was getting from Netflix for $22 a year ago. I hope their competition lasts forever and if the value balance tilts the other way I'm more than happy to change. Again. [​IMG]
     

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