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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."

7 of 679 comments (clear)

  1. Although they might do it.... by Lumpy · · Score: 5, Interesting

    Last week my local Walmar had a large vending machine that dispensed the DVD that you wanted to rent. and the machine would accept the returns also.

    All I needed was my credit card/ debit card.

    Maybe they are looking to expand in both online rental and vending style?

    --
    Do not look at laser with remaining good eye.
  2. Re:Wal-mart's business model won't work well here. by FatAlb3rt · · Score: 4, Interesting

    Wal-mart's core customer group are not exactly likely to own DVD players

    At $40 or so for a DVD player, who can't afford one?

    Well, how much are you going to be able to slash prices on an online DVD rental?

    I doubt that's the point. People do their grocery shopping at Wal-mart since groceries are there too. Now they won't have to stop by the video store on the way home either.

  3. Re:Family fun! by Elvisisdead · · Score: 4, Interesting

    I bought Dogma at Wal-Mart. Unedited.

    --

    "Want in one hand and spit in the other and see which one fills up first." - My Dad
  4. Re:Wal-mart's business model won't work well here. by Maeryk · · Score: 4, Interesting

    I really don't mean this to be a troll... but it occurs to me that Wal-mart's core customer group are not exactly likely to own DVD players.

    You kidding me? Where else can you get a DVD player for 40 bucks? not Rad Shack.. anything they sell has to be at least 80.. or they wont sell it. Walmart can hook you up with a passable home theater for under 500 bucks.. and they stock a fairly reasonable selection of DVDs and videos. (And yes, even pulp fiction, uncut, last time I was there looking).

    So this is the next logical step for them. Super Walmarts have replaced the shopping mall for all intents and purposes. (Sure.. they sell Kmart level CRAP in most cases, but in some instances you can get good deals there.) The one here has a pharmacy, a grocery store, a pearle vision center, automotive, the usual Walmart crap, a decent electronics and sporting goods area, and an outdoors home decor shop. There really isnt any reason to shop anywhere else. (Unless you want to go to home despot for hardware..).

    This is exactly the demographic they want.. the kind of people who are at wal-mart three times a week grocery shopping anyway. The difference between a scheme like this and the ill fated VHS in grocery stores, would be selection.

    Maeryk

    --
    Feminine Protection? What is that? A chartreuse flame thrower?
  5. Re:Maybe not such bad news for NetFlix by Frymaster · · Score: 4, Interesting
    no, it's bad for netflix because walmart has a virtually limitless warchest and can win by attrition. how big is walmart?
    • last year their revenues were $200 billion us. that's more than the gdp of israel
    • of the 10 richest people in the world, five are waltons (of walmart fame). you think gates is a fat cat? the waltons are downright obese!
    • heck, s. robson walton may even be richer than bill! the "rich list 2001" claimed that s.r. had a personal bankroll of 65 billion, and placed him in the top slot for wealth worldwide.
    • walmart has 1 million employees. three times general motors.
    • however, despite all this, the average walmart employee makes only 15k/year.
    how do you beat that kind of war chest?
  6. Re:Competition by BigBir3d · · Score: 4, Interesting

    What is so unfair about Wal-Mart moving into the online DVD rental business?

    Maybe now we will see some "innovations" in Netflix's offerings?

  7. propane tanks by zogger · · Score: 5, Interesting

    That "walmart only, propietary" deal happend to me with a couple of my small refillable propane tanks. I got two from walmart, turns out they put a "walmart_only_ thread on the filler valve, you are forced to get filler-ups/exchanges only at walmart then, unlike my other ones that I can take anyplace handy.

    I didn't mind walmart when sam walton was still kicking, it seemed like they at least made an effort to have "made in USA" stuff in abundance, and didn't have weird polices like this propane deal (and what they will probably do with DVDs-good call there), but now,since he's died and who knows who is running it as an economic division of the chinese peoples liberation army, I've about almost completely removed them from sucking on my wallet. Once in a great while I get stuck, and have no recourse but to go in there, and every time I see aisle after aisle of lost homes, lost jobs, lost equity, lost cars, basically a lot of lost hopes and dreams disgusied as cheap trinkets, like what were used to purchase manhattan island. Trinkets, ohhh shiny and cheap.

    They are that-cheap. Cheap as in price, cheap as in quality, but very expensive with a bigger look at when once those dollars leave the shores of the US and cease acting as an economic force multiplier.