Wal-Mart Turns Over DVD Rentals to Netflix
prostoalex writes "US retail giant Wal-Mart is turning its DVD rental business to Netflix. No word on how much money the deal is worth but Netflix will feature promotional Wal-Mart links for the 100K customers it gets from the retail chain."
I don't know, but I could imagine a scenario wherein NetFlix provides what amounts to a fulfillment service to Wal-Mart under the Wal-Mart name and maintains its own NetFlix branded rental service.
Then, if Wal-Mart says: no NC-17 movies, etc., on our branded service, fine. So long as the people who are interested in it can still get it under the NetFlix name, I don't care if Wal-Mart wants to filter their product.
Walmart bought Netflix, not t'other way round.
From what I read no one bought anyone. Netflix is going to get the old Wal-Mart customer base but NetFlix is going to offer a sales link to Wal-Mart. I don't see it as a buy and sell but rather allowing each company to focus on either rental or retail. If anything both sides stand to profit from this; NetFlix gets the customer base on rentals and Wal-Mart can focus on the retail DVD market while dumping what was probably a less than profitable side venture along with what is basically free advertising from NetFlix.
Dedicated Cthulhu Cultist since 4523 BC.