The LA Times is reporting that Netflix is taking over Walmart's DVD rental program.
Wal-Mart is offering 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. Those who don't sign up with Netflix by June 17 will lose their service. Wal-Mart plans to continue promoting the Netflix service on its Web site.In return, Netflix will remind its subscribers that they can buy DVDs from Walmart.com.
Netflix issued a press release which included the following:
In connection with today's joint promotional announcement with Walmart.com, Netflix, Inc. advised investors that it believed the agreement would not materially impact the company's current subscriber growth or financial performance and, as a result, the company is not revising the guidance it provided on April 21, 2005.Netflix remarked that teaming with Walmart.com strengthens the Company's competitive position as the popularity of Walmart.com and the Web site's traffic offer an opportunity for increased awareness and referrals to the Netflix service.
Reports have put the total number of Walmart subscribers between 100,000 and 250,000, but the deal has significant strategic potential for Netflix.
Update: Evan sent in a screen capture with a Walmart ad on the Netflix site.
Aron sent in a shot of the Walmart site recommending Netflix.
Yup........ads already in my Netflix queu
Posted by: Evan | May 19, 2005 at 09:52 AM
Yeah, that's the first thing i notice this morning a Ad on the main page. I was wondering about that until i came here and read the story about taking over walmart dvd rental.
Posted by: Jnetty | May 19, 2005 at 10:02 AM
The Wal-Mart ad seems to only appear on the main Netflix web page. I haven't seen it anywhere else. I'll admit it's a little weird seeing it there, though.
There's no denying this deal is a coup of sorts for Netflix. Netflix deserves credit for getting a concession from a company that doesn't back down or taste defeat very often. I'm just somewhat disappointed at the association with Wal-Mart. The company is an 800-pound gorilla, to be sure, and yet its anti-union, low wage, scant benefits policies don't sit well with me. I don't buy anything from them anymore- it's not a company I would support. I'll still get my DVD's at Amazon.com.
Posted by: Guy B. Jones | May 19, 2005 at 10:24 AM
You know I had the feeling Wal-Mart would not last too long. Folks that I knew who tried the service ended up with Netflix or Blockbuster.
Posted by: Sonja | May 19, 2005 at 10:34 AM
The real steal for Netflix would be if they will be able to leverage WalMart's purchasing power with the studios to get better prices on their discs. Even a couple cents drop in purchase price per disc could lead to big savings. WalMart: "give our buddies a break on the rental discs or we'll put your movies at the back of the rack"
Posted by: RM | May 19, 2005 at 10:46 AM
I wonder if this will have any effect on the selection that Netflix offers, since Wal-Mart is notorious for, shall we say, offering a selective selection in their stores. And I for one, am very glad that Netflix allows the user to close the banner ads and never see them again.
Posted by: Kathryn | May 19, 2005 at 11:09 AM
it just seems like wal-mart has given up. it did not want to build the distribution centers like netflix or blockbuster. so netflix came in an bought/inherited the customer base. i do not think it will have any effect on the price of dvd's to netflix or change netflix's selection of disks.
Posted by: greg | May 19, 2005 at 11:22 AM
I'm a bit saddened by this news. I was one of the few to find redeeming characteristics in Walmart's service, even if I eventually turned to Netflix.
I wonder if Netflix will also aquire Walmart's rental inventory. There were a few titles they had that Netflix still does not carry.
Posted by: Manda | May 19, 2005 at 11:26 AM
Walmart made a half-hearted attempt at online rental. They could have tried to integrate rentals with sales but didn't and watched the fight between netflix & bb from the sidelines. BB is trying to morph into a rental AND retail company and didn't have the right synergy to integrate with walmart. So now we have netflix as pure internet rental company and amazon as a retail company and bb as internet + B&M rental + retail. BB wears too many hats and it may be difficult to sustain it. The question is if BB raises the monthly subscription to be on par with netflix, can netflix command a premium by raising its fees? Otherwise, where is the money?
Posted by: vn | May 19, 2005 at 11:27 AM
I am a little upset at this too. Walmart always had what I wanted in stock (tv shows) and BB never seems to. When I used Netflix, they never seemed to have anything in stock.
Posted by: scott | May 19, 2005 at 01:06 PM
Yeah, I noticed the Walmart advert this morning and wondered if Netflix had always had ads and I had not noticed or if it was new, but I didn't dwell on it. Now that you mention it, I am annoyed that they would do this.
Posted by: Dona | May 19, 2005 at 01:25 PM
I just like seeing the Walmart site sing the praises of Netflix.
Posted by: Aron | May 19, 2005 at 02:03 PM
I too am quite disappointed with the alliance. For information about Walmart's questionable business practices check out: http://www.walmartwatch.com
I don't shop at Walmart or Sam's anymore, and will now have to make a tough choice about Netflix since I do like the service so much. Trying to maintain your ethics, morals, and integrity can be such a bitch in this global economy.
Posted by: paul | May 19, 2005 at 02:04 PM
Interesting take from NYC's hot neighborhood of Williamsburg, Brooklyn:
http://www.freewilliamsburg.com/archives/2005/05/_netflix_and_wa.html
Is there the chance of a backlash?
Posted by: | May 19, 2005 at 02:20 PM
oh yeah, one down (wmt), one to go (bbi), NFLX is the champion once again. Go NETFLIX! SERVICE WINS YEAH!
Posted by: TREY | May 19, 2005 at 02:28 PM
I'm happy for Netflix investors because this'll make them have more confidence in the company, but being from a very pro-union family, I'm quite unhappy with the decision to do it with Walmart. I whole-heartedly sent the email from that website (though I reworded it myself) saying that I would reconsider my business with Netflix because of this, and I am serious when I tell them that.
Posted by: Michael | May 19, 2005 at 03:26 PM
Very Interesting news
http://www.blockbuster.com/switch
Blockbuster Announces Incentives for Wal-Mart and NetFlix Online Rental Subscribers
Thursday May 19, 1:49 pm ET
Subscribers to WalMart.com or NetFlix Who Switch to Blockbuster Online(TM) to Receive Two Free Months of Service, Free Retail DVD and Guaranteed Price of Their Current Subscription Plan for One Year
Posted by: ghlu | May 19, 2005 at 04:09 PM
Sounds like a good deal...interesting though...Blockbuster says it will match the "terms" and "price" so if you were on, say, 3 at a time at $17.99 with Netflix, I guess that means Blockbuster will charge the same.
Posted by: Michael | May 19, 2005 at 04:21 PM
why would i want to switch to blockbuster and keep my netflix price? netflix is more expensive?
Posted by: | May 19, 2005 at 04:46 PM
Anybody checked out the blockbuster site today? When I was just on, there was a link for 2 free months for anybody cancelling from Netflix or Wal-Mart and starting a Blockbuster plan. Has anybody done this?
Posted by: CaT | May 19, 2005 at 06:41 PM
After the landing page, click on the movies tab, and it's right below the mini Q.
Posted by: CaT | May 19, 2005 at 06:42 PM
http://www.blockbuster.com/switch
wow. I just did it. two months free. Thanks!
Posted by: LJ | May 19, 2005 at 08:01 PM
So how long before the "coupon" sites get ahold of a Wal*Mart or Netflix cancellation notice so you can take a copy, fill in your name and e-mail address, and get in on the BBI offer? Heck, anyone with a modest CGI hacking skillset could set up a web page "mad lib" site that would mail you a (phony) cancellation notice you could then forward to BlockBusted^Hr to get in on the deal.
Posted by: | May 19, 2005 at 08:24 PM
and your point is??? a lot of people might do this.
Great call Captain Obvious
And what's next. People might sign up for Netflix under a different address or credit card than they use now, and immediately cancel and forward that notice?
Posted by: | May 19, 2005 at 08:37 PM
Couldn't you also conceivably cancel Netflix at some point before your billing date, forward the cancellation e-mail to Blockbuster, and then go right back and restore your Netflix membership? Then you could have both services at the same time, while getting Blockbuster free for two months.
I've never cancelled Netflix so I don't know what their method is, but when I cancelled Blockbuster a few months ago, I found out that they preserve your queue for something like 90 days and within that time, you can restore your old Blockbuster membership.
Posted by: Pinball Mars | May 19, 2005 at 08:39 PM
I guess the short question is...
If one "cancelled" Netflix right now and then just went right back and resubscribed to Netflix (no using a different credit card, no "hacking" involved), would their old Netflix queue and all their registration info be preserved?
Does Netflix give you a fuss-free option to return?
Posted by: Pinball Mars | May 19, 2005 at 08:50 PM
I don't really see the Walmart/Netflix thing as anything other than Walmart not wanting to spend the time or money on renting DVD's. Of course Netflix is reaping the reward, not so much in gaining members but the PR of it all. I can't believe that Netflix would be a "long term partner" with Walmart though.
Posted by: | May 19, 2005 at 10:15 PM
"Does Netflix give you a fuss-free option to return?"
Yes, they save your queue and ratings for I believe up to 90 days.
Posted by: | May 19, 2005 at 11:32 PM
cancelling your netflix accoutn every few months is the best way to stop throttling anyway.
It is also the best way to get new releases.
Posted by: | May 20, 2005 at 12:07 AM
keep in mind if you cancel your netflix account it takes effect imediately, ie you lose the rest of the month that you paid for...
Posted by: | May 20, 2005 at 03:49 AM
"Heck, anyone with a modest CGI hacking skillset could set up..."
I guess HackingNetflix really does "teach you how to lie, cheat or steal."
Posted by: manuel | May 20, 2005 at 06:00 AM
Manuel,
C'mon. You know my policy about posts (including yours). I won't teach this stuff, but am I supposed to start editing the comments beyond hate or racism? Where do I draw the line?
Delete everything I disagree with? Out of more than 6,500 comments I've only edited a few, including one referring to you (that you complained about).
Your site, on the other hand, doesn't allow for comments and you only post the feedback you like.
- MikeK
HackingNetflix.com
Posted by: MikeK | May 20, 2005 at 08:17 AM
Manuel - Get a life.
Posted by: | May 20, 2005 at 09:21 AM
Manuel, do you wear tinfoil hats at home?
Posted by: Evan | May 20, 2005 at 09:36 AM
remember Manuel's tampered Netflix evelope?
what an untrustable con.
Posted by: bors | May 20, 2005 at 12:21 PM
No?!?!?!? What was it?
Posted by: | May 20, 2005 at 12:37 PM
It is interesting to see Manuel's personal attacks on MikeK and HackingNetflix. Jealousy is slowly consuming him. Media talks to MikeK and not him. Tsk tsk tsk.
Since all he does is whine on his website about how he can't get 50 cartoon DVDs a month from Netflix and not provide a balanced view, he has become brain damaged and people do not trust a single word that he writes.
Posted by: | May 20, 2005 at 03:02 PM
"3 at a time at $17.99 with Netflix, I guess that means Blockbuster will charge the same."
anyone not on the 3/$15.99 plan wiht NTFX is nuts. Just call and ask for it, you get it. If youcancell they send you an offer for $15.99
the coupon boards are now reporting that those cancelling netflix are being offered return at $15.99 for three by NTFX. good deal
Posted by: | May 20, 2005 at 07:28 PM
i just called and asked for the $15.99 offer and they denied me, is there anything i should say to them?
Posted by: zach | May 20, 2005 at 09:58 PM
Talk about taking things out of context. The "tampered" Netflix envelope Manuel posted was a joke, and he never claimed it was legitimate. Why don't you stop bashing Manuel and get a life yourself?
Posted by: MRZOT | May 21, 2005 at 10:41 PM