Wal-Mart competing against Netflix??

[MrTony]

Found this at IMDb:

DVD Goliath Wal-Mart Faces Upstart Netflix

Wal-Mart has launched a price war against online DVD renter Netflix, announcing three new subscription plans that significantly undercuts the smaller company's pricing. At the same time, the retailer, which sells more DVDs than any other company, expanded its distribution centers to compete with Netflix's faster delivery time and added 1,000 titles to its stock, to bring its total to 13,000; Netflix carries 15,000 titles. Under Wal-Mart's standard subscription, customers will be able to keep two DVDs out at the same time for $15.54 per month or three for $18.76; Netflix allows customers to keep three disks out for $19.95. Wal-Mart test launched its online service last October and has steadily expanded it since. Netflix spokeswoman Lynn Brinton told today's (Wednesday) Los Angeles Daily News: "We don't see [Wal-Mart] as a real threat until they develop more critical mass in their subscriber base."

For an extra dollar per month, I'll continue to support Netflix. And I can't imagine that Wal-Mart will be carrying the variety Netflix does. Still, I worry about what might happen if this picks up steam. Your thoughts?

[wynterfire]

wal-mart's service is probably cheaper cause of the chopped up P&S movies they'll send you.

and also the "softer" versions of racier films. hmmmm....

i'll stick with netflix thanks

[RBB]

Since Wal-Mart operates predominately under the quantity not quality model, there's no way I'd trust them with my entertainment.

However, it is worrisome that they could put a quality organization out of business by pricing them out of the market. It's not like they don't do it every day.

[tomdkat]

Originally posted by RBB
However, it is worrisome that they could put a quality organization out of business by pricing them out of the market. It's not like they don't do it every day.

I think we need to see how well Walmart is able to accomplish this. If anything, I think Walmart should have partnered with Netflix, since Netflix has been doing this for so long now.

Peace...

[AlexJS]

Originally posted by tomdkat
I think we need to see how well Walmart is able to accomplish this. If anything, I think Walmart should have partnered with Netflix, since Netflix has been doing this for so long now.

Amen to that. They might do well with mass-market titles (rent what they sell, pretty much) but I wouldn't strain myself looking for any Criterion releases. Either way, the can capture market share just by showing up. Maybe Target will get into the act too.

I tried Wally-Mart not long after they launched the service and wasn't too impressed with it. The selection was pretty meager and the turnaround times weren't so hot either. Then again, I did get two titles Wal-Mart had available that were "very long wait" on Netflix.

I read the wire story and Wally-Mart has just figured out what Netflix realized a long time ago - that they needed lots of distribution points. Once NF opened one on the other side of DC, they got my business back - gotta love 2-day turnaround!

[mlemmond]

Wal-Mart is the devil I'll stay with Netflix thank you very much!

[Dr. Evil]

Wal-Mart isn't invincible; when they moved into the Vancouver area, they didn't sweep all before them, especially in the CD/DVD area (local chaing A&B Sound handily beat them off).

In fact, I can't remember the last time I went into a Wal-Mart in this region; it's been years.

RD

[Enzian]

"Handily beat them off"?!?

That's the funniest thing I've heard in a while.

[marty]

possible good news for Wal-mart haters from IMDB
Will Netflix Patent Become a Weapon Against Wal-Mart?


Netflix, the online DVD rental company, may have received some potent ammunition in its battle with rival Goliaths Wal-Mart and Blockbuster, when it received a patent Tuesday covering some 100 processes employed in its distribution system. The Los Gatos, CA-based company said it has not yet determined whether its competitors might be infringing on the patent, but the trade publication Video Store magazine, in its report about the patent, observed that Wal-Mart and Blockbuster "have copied the [Netflix] model to launch their own online rental businesses."

[mlemmond]

Good I hope this shuts down Wal-Mart and Blockbuster's online rental plans. Maybe they should try coming up with an original idea.

[AlexJS]

I saw the story yesterday but forgot to mention it in here. my mind was elsewhere apparently..

Netflix Says Granted Patent on DVD Rental Service

[aintnosin]

As much as I would love to see someone stick it to Wal-mart and Blockbuster, I get queasy when someone can get a patent just for the idea of online rentals. Basic ideas like that should not be patentable, only the underlying technology that actually took some work to create.

[AlexJS]

I hear you aintnosin. An expert in the article I linked to said the other companies could pretty well defend themselves by saying it's an obvious process and there's nothing that special about it. From ho I see it, they could maybe patent their internal systems (the website, order fulfillment, etc. especially if it was built from scratch) but just the idea seems pretty silly.

[elwood731]

I tried Wal-Mart's service and found it to be fine except for the problem with the turnaround. It was kind of slow. Oh well, I did it for the month free trial and got to see some movies I didn't want to pay to rent.