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Wal-Mart Enters NetFlix's Business

wcbrown writes "AP reports that Wal-Mart is entering into the online DVD rental arena, currently dominated by Netflix. Wal-Mart is starting out with 13,000 titles, six distribution centers, and competitive pricing. With a seriously tremendous infrastructure and expansive will, Wal-Mart stands poised to overtake Netflix. To say the least, that's not going to be good for business."

17 of 679 comments (clear)

  1. Maybe not such bad news for NetFlix by drfuchs · · Score: 5, Insightful

    This isn't necessarily bad for NetFlix. First, it "validates" the market, and gives NetFlix a bunch of free PR (all the articles about the Walmart entering the fray will compare/contrast with NetFlix), including making tens of millions of consumers more aware of this new sort of rental scheme that they just don't grok yet. Second, it makes NetFlix a take-over target for any other company wanting to join in the competition (perhaps even BlockBuster, if their home-grown offering falters). Then again, maybe NetFlix will get blown out of the water.

    1. Re:Maybe not such bad news for NetFlix by drfuchs · · Score: 5, Insightful

      p.s. Also, all non-Walmart stores that sell DVD players (Circuit City, Best Buy, CostCo etc.) are motivated to push NetFlix on their customers, rather than Walmart, with whom they compete. Everything from the salesperson suggesting NetFlix (and perhaps getting a kick-back if you sign up), to NetFlix coupons in/on the box, to PR at the Point-Of-Sale.

    2. Re:Maybe not such bad news for NetFlix by markv242 · · Score: 4, Insightful

      Substitute "Netscape" for "Netflix", and "Microsoft" for "Wal-Mart" and your comment seems frighteningly on-target.

  2. Competition by Lizard_King · · Score: 5, Insightful

    To say the least, that's not going to be good for business

    Competition is good for the consumer.

    --
    "My mother never saw the irony in calling me a son-of-a-bitch." - Jack Nicholson
    1. Re:Competition by geekoid · · Score: 3, Insightful

      Fair competition is good for the consumer.

      --
      The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
    2. Re:Competition by Indomitus · · Score: 4, Insightful

      Walmart doesn't tend fo "compete" in the same way as other companies. Since they make up such a large percentage of sales of things like movies, CDs, and magazines they make a lot of demands on distributors that other companies can't ask for. This puts their competition on a very un-level playing field and has the result of killing or severely weakening any threats to Walmart's dominance. That is _not_ good for the consumer in the long run.

  3. Selection problems by MrLint · · Score: 4, Insightful

    Well as we have seen Walmart has a long and unbroken track record of removing/banning/censoring things too non-consertative/too non-christian/too non-'patrotic'/too 'contreversial' for their perceived vanilla brain dead store-goers. It will remain to be seen what they actually make available.

    1. Re:Selection problems by HungWeiLo · · Score: 3, Insightful

      That's not true - Americans often censor themselves just fine, thank you very much. Walmart will only put items on their shelves which have a 98% sell-through rate. If it's on the shelves, you bet someone's buying it up pretty quickly. Because of that, I don't think the blame can be squarely put on just Walmart - it's just that Americans in general are vanilla brain dead store-goers.

      --
      There are a huge number of yeast infections in this county. Probably because we're downriver from the bread factory.
    2. Re:Selection problems by NineNine · · Score: 3, Insightful

      Yes, they know their customers. But there ARE some things more important than the almighty buck. I run a retail store, and there are plenty of things that I could sell and make a killing on bbut I won't because the products are shit. Wal-Mart will sell anything and everything that they can make money on. I'm picky about what I sell and I still make a decent profit. If their customers wanted pork skins in the shape of Jesus, they'd sell them. I wouldn't.

  4. The only problem for me is... by ScottGant · · Score: 5, Insightful

    That when I go to rent a movie, it's usually on a spur of the moment thing. It's like I ask my wife "what would you like to do tonight" and she might say I don't know...wanna rent a movie?

    So then we go down to the rental place and look around, not really sure what we want and pick something up and go home THAT NIGHT and watch a movie.

    With renting a movie over the net and having it mailed to you isn't quite what we're looking for. We want something we can see that night, not two days from then...because the way we live two days from then we might be doing something else that comes up etc etc. We live by the seat of our pants and never really plan out little things like movie watching in advance.

    At least, that's how we play it. Is there really that much need for this out there? Just curious.

    --

    "Music is everybody's possession. It's only publishers who think that people own it." - John Lennon.
    1. Re:The only problem for me is... by angle_slam · · Score: 3, Insightful
      Renting on the spur of the moment does have its advantages. But there are also disadvantages too. For me, the primary disadvantage was planning to see a movie, renting it, then not having time to see it and having to return it unseen.

      With Netflix, I keep my queue filled. If me and my wife have free time, we have three movies (give or take mail delays) to choose from and don't have to leave the house. If we don't have time to watch that day, we can keep the movie for as long as we want, until finally returning it. But if we have a free weekend, we can watch all 3 movies, and merely return them by dropping it off in the mailbox at my office. Very convenient.

      Plus, Netflix has one huge advantage--selection. Your local Blockbuster doesn't have a shot of having the same selection as Netflix. Not a big deal if you only like mainstream movies. But if you are a fan of independent movies, or older movies, or foreign movies, or music concerts--Netflix is for you.

  5. Re:Wal Mart vs. Microsoft by Zuke8675309 · · Score: 5, Insightful

    It will be good for the consumer because there will be price competition. As it stands now, Netflix has cut down on service and raised prices since they started. In fact, this is EXACTLY the type of service that Wal-Mart should EXCEL at. Wal-Mart is a master of the supply chain, which is the main issue with DVD rental through the mail.

    I don't understand the argument against Wal-Mart in regards to small businesses. If Wal-Mart undercut everyone else, pushed small businesses out of business, and then jacked their prices up I could understand the argument. I haven't seen that though, they're always the lowest price. Lowest price is good for consumers. As for the service aspect - I don't need good service to buy rubbermaid, toilet paper, toys, video games, or dvds. I just need/want low price.

  6. The market is self-correcting by JonTurner · · Score: 5, Insightful

    Not good for the consumer? Rubbish. You act as though aggressive competition guarantees an irrevocable market dominance. It doesn't! As soon as your theoretical future-walmart doesn't meet the consumer's desire for quality+low prices+convenience (something it currently does quite well, mind you) another business can rise up to meet that need.

    Give the consumer due credit -- when a company takes it's customer base for granted and acts like a "dinosaur" it loses market share to smaller, more nimble companies that give the customer what they want. The business history books are full of examples (see Sears & Roebuck, K-Mark, IBM, etc.)

    Result? Problem solved, unless you simply don't believe that capitalism works.

  7. Re:Thanks, but No Thanks by Maeryk · · Score: 4, Insightful

    Gee, just what I always wanted! A censored DVD rental company! Sigh. I have lost complete and total respect for Wal-Mart over the years. First they started flexing their muscles to censor the video game industry and made it plain that any video game they didn't like wouldn't be sold by Wal-Mart, thus making game companies cave and self-edit their games. Then they pulled some men's magazines off their shelves that had less female skin than most women's magazines these days. Now they want to start renting out DVDs, which I'm quite sure are censored? Heh, good luck.


    YEah! I DEMAND streaming porn on the projector at elementary schools! Who is WalMart to tell us what they will and wont sell! HOW DARE THEY have some morals and make decisions that they feel protect their clientele!

    Sheesh.. the NERVE of walmart to think that someone like me may not want my six year old son asking why a mostly naked wrestling chick is on the front cover of STUFF magazine in the checkout line! (Stacy Kiebler.. next month).

    Well.. I think I'll take my dollar right down to the local dark wank-in-the-back porn shop to show my outrage! (end sarcastic rant).

    Dude.. its their store. They can sell, or not sell, whatever the hell they want. If you dont like it, dont shop there, but dont act like its some crime against humanity that Wal-mart doesnt carry pimply faced teenager prot0-spank material at their registers anymore.

    Maeryk

    --
    Feminine Protection? What is that? A chartreuse flame thrower?
  8. Re:Limited Market by athakur999 · · Score: 3, Insightful

    True geeks, IMO, would be MORE likely to rent the DVD rather than download it. It's the casual movie watcher that's happy with a badly compressed version off of Kazaa. Geeks want to enjoy their movies in their full 5.1 surround sound/THX/whatever glory on their big screen.

    --
    "People that quote themselves in their signatures bother me" - athakur999
  9. OT, I know. (Re:Maybe not such bad news ) by JamesOfTheDesert · · Score: 4, Insightful
    Netflix at least has a fighting chance, Netscape didn't.

    Hard, though, to have sympathy for a company that nicknamed their product "Mosaic Killer", AKA Mozilla.

    Microsoft may have fscked a number of companies, but anyone entering a market where people are already giving away their product should not be surprised when somebody else comes in and gives away their product.

    --

    Java is the blue pill
    Choose the red pill
  10. Re:Thanks, but No Thanks by mattsucks · · Score: 3, Insightful

    Yes, Wallyworld can sell whatever they want, measured against whatever corporate standards of decency they so choose.

    But it still saddens me. Here's why, and I've seen this happen over and over and over. Walmart moves in to a community. All the smaller book/record/video/newsstand stores go out of business; they just can't compete. Then all that is left for that community at that point, in an EASILY ACCESSIBLE FORM, is Walmart's definition of "decent".

    Yes, I can "shop somewhere else", but what if there IS nowhere else?

    Is it legal? I believe it is. Competition == good. It's the American Way (tm). We should all be so lucky.

    It is good for the community? I believe it is not.

    Also sad is Wallyworld's penchant for pressuring publishers and distributors to modify their books/records/videos/etc before they will stock them. That to me falls solidly in a gray area of legality. Sure, the distributors can go elsewhere if they don't want to edit ... but where the hell else can they go?

    Sure I can write a better browser ... but when all that exists is Windows+IE where the hell can I run it?