It's not a new story (and I didn't submit it to/.), but the fact that they are testing the product and it looks like a Tivo login is interesting. Netflix really hasn't said much other than they have a deal with TiVo and the service will be "underwhelming."
The screen capture also has the name of the new device: Netflix Player.
I did some research into this. About 4,000 of the Blockbuster stores are franchises, and they buy the full, unedited copies of movies. My local BB is a franchise.
The company stores usually buy the "rated" vs. "unrated" editions of movies, such as Harold & Kumar Go To White Castle.
Your store is probably a franchise. Ask the next time you're there.
This is an excellent move for Walmart because it gives them the chance to exit the DVD-by-Mail business gracefully. They had between 100,000 and 250,000 subscribers, and didn't want to be in an expensive business during a price war (Blockbuster is spending over $100 million to compete). Walmart sells about 30% of all DVD's and this is where the bulk of the revenue is now.
Walmart is probably getting paid very each time someone subscribes to Netflix (Netflix pays $20 or more for each new subscriber). This could be a lot more profitable than doing the service themselves.
Netflix gets a bunch of new subscribers and the blessing of Walmart. While Netflix isn't predicting a huge amount of revenue from the deal, it's very strategic: Walmart is actually recommending Netflix.
They just changed late fees to an automatic purchase program. Worse, when you return the movie after you've "bought" it, they give you a store credit and sock you with a handling fee.
Up to 20% of stores are franchises and many revolted against the "No More Late Fees" program, causing customers to be totally confused. "No More Late Fees" commercials running on all channels and yet my local Blockbuster still charges late fees?
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The screen capture also has the name of the new device: Netflix Player.
Mikek / http://www.hackingnetflix.com/
The company stores usually buy the "rated" vs. "unrated" editions of movies, such as Harold & Kumar Go To White Castle.
Your store is probably a franchise. Ask the next time you're there.
- MikeK
http://www.hackingnetflix.com/
Walmart is probably getting paid very each time someone subscribes to Netflix (Netflix pays $20 or more for each new subscriber). This could be a lot more profitable than doing the service themselves.
Netflix gets a bunch of new subscribers and the blessing of Walmart. While Netflix isn't predicting a huge amount of revenue from the deal, it's very strategic: Walmart is actually recommending Netflix.
I have more info and pictures of the Netflix and Walmart ads on my blog: http://www.hackingnetflix.com/.
MikeK
www.HackingNetflix.com
Up to 20% of stores are franchises and many revolted against the "No More Late Fees" program, causing customers to be totally confused. "No More Late Fees" commercials running on all channels and yet my local Blockbuster still charges late fees?
I've been covering this story and more at: http://www.hackingnetflix.com/
- MikeK @ HackingNetflix.com