Friday, May 20, 2005
Wal-Mart Yields to Netflix on Rentals
"This business is a drop in the bucket for Wal-Mart, but it could represent a significant opportunity for Netflix both in initial gains by converting Wal-Mart subscribers but also with the advertising value of having the Netflix brand in front of millions of Wal-Mart shoppers," said Dan Hess, senior vice president of ComScore Networks, a consumer analysts firm.
John Fleming, Wal-Mart.com's chief executive, said the company's decision stemmed from a desire to focus its efforts on Internet sales, which is far more profitable than online renting and more easily drives in-store shopping.
...In response to the Wal-Mart/Netflix deal, Dallas-based Blockbuster announced it would offer both Wal-Mart and Netflix online rental subscribers who switch to Blockbuster two free months of service, a free retail DVD of their choice and a new subscription at their current rates.
LA Times 5/20/05
John Fleming, Wal-Mart.com's chief executive, said the company's decision stemmed from a desire to focus its efforts on Internet sales, which is far more profitable than online renting and more easily drives in-store shopping.
...In response to the Wal-Mart/Netflix deal, Dallas-based Blockbuster announced it would offer both Wal-Mart and Netflix online rental subscribers who switch to Blockbuster two free months of service, a free retail DVD of their choice and a new subscription at their current rates.
LA Times 5/20/05
# posted by Lynn Wegley @ 8:42 PM 
