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Wal-Mart Enters NetFlix's Business 679
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."
Maybe not such bad news for NetFlix (Score:5, Insightful)
Re:Maybe not such bad news for NetFlix (Score:5, Insightful)
Re:Maybe not such bad news for NetFlix (Score:3, Interesting)
Re:Maybe not such bad news for NetFlix (Score:3, Insightful)
Re:Maybe not such bad news for NetFlix (Score:5, Insightful)
Re:Maybe not such bad news for NetFlix (Score:4, Informative)
It's in their blood, though. Wal-mart has been convicted of dropping prices below cost at individual stores to kill the local mom'n'pop competition. Then they would jack the prices back up when they became the only game in town.
It was pretty popular for Wal-mart when opening new stores in small towns, before they were busted for it.
OT, I know. (Re:Maybe not such bad news ) (Score:4, Insightful)
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.
propane tanks (Score:5, Interesting)
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.
Re:Maybe not such bad news for NetFlix (Score:2)
Re:Maybe not such bad news for NetFlix (Score:5, Interesting)
Re:Maybe not such bad news for NetFlix (Score:3, Funny)
With a reasonable online presence, which Wal-Mart doesn't have. With an established internet brand, which Wal-Mart doesn't have.
Every buy anything from Wal-Mart? OK, Ever buy anything from Wal-Mart online?
Re:Maybe not such bad news for NetFlix (Score:5, Funny)
Re:Maybe not such bad news for NetFlix (Score:3, Insightful)
They don't? Walmart.com is as functional as Amazon.com or just about any B&M retailer with an online presence. Heck, this DVD rental service is already available on Walmart.com.
Every buy anything from Wal-Mart? OK, Ever buy anything from Wal-Mart online?
Yes, and yes. What's your point? Shopping at walmart.com was as easy as shopping at any other online retailer.
I'm not a big fan of Walmart or their business practices, and their
Re:Maybe not such bad news for NetFlix (Score:4, Informative)
Even bigger than that (Score:4, Informative)
Re:Maybe not such bad news for NetFlix (Score:4, Funny)
And more 6 times the revenue of Microsoft Corp. last year. And the average MSFT employee makes *quite* a bit more than $15K a year.
Yeah, Walmart makes Microsoft look like a pussycat.
Re:Maybe not such bad news for NetFlix (Score:3, Informative)
Interesting contrast between this:
Where I am, Walmart doesn't really have a great reputation ... I find Walmart a pain in the ass to shop in ... My mother and father HATED going there ... Walmart customer service?? Pain, in, the, ass.
and this:
Long lines ... A couple of months ago, I once stopped in to grab a snack and soda, it being late at night and they were open 24/7 and I was passing by. Tired, I wasn't thinking. I walked out, fuming, 45 minutes later with a 2L and a bag of chips.
If Wal-Mart i
Re:Maybe not such bad news for NetFlix (Score:4, Funny)
asda (Score:2)
Re:asda (Score:3, Funny)
Patent (Score:5, Funny)
Family fun! (Score:5, Funny)
Re:Family fun! (Score:2)
Mike
Re:Family fun! (Score:5, Interesting)
Re:Family fun! (Score:5, Funny)
Ving Rhames: "..and wait for the Wolf, who will be arriving directly"
Samuel L. Jackson: "Golly attractive and successful African-American, thats all you had to say!"
Although they might do it.... (Score:5, Interesting)
All I needed was my credit card/ debit card.
Maybe they are looking to expand in both online rental and vending style?
Competition (Score:5, Insightful)
Competition is good for the consumer.
Re:Competition (Score:4, Funny)
But not for the consumed.
Wal Mart vs. Microsoft (Score:2, Insightful)
will be better off for it.
Re:Wal Mart vs. Microsoft (Score:5, Insightful)
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.
Re:Competition (Score:3, Insightful)
Re:Competition (Score:5, Interesting)
Maybe now we will see some "innovations" in Netflix's offerings?
Re:Competition (Score:5, Informative)
Re:Competition (Score:3, Interesting)
What is so unfair about Wal-Mart moving into the online DVD rental business?
There's nothing specifically unfair about Wal-Mart get into the online DVD rental, except that they can absorb huge losses while they wait for their competition to die.
That may seem like it's just the breaks of being in business, but Wal-Mart's brick-and-mortar store strategy is to open up so many Wal-Mart's in an area that it cuts into everyone's bottom line, even that of the other Wal-Mart's. Then when all the mom and pops
Re:Competition (Score:4, Funny)
Re:Competition (Score:5, Insightful)
The market is self-correcting (Score:5, Insightful)
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.
Re:The market is self-correcting (Score:3, Interesting)
The point, though, is that an economic juggernaut like Wal-Mart has the ability to erect such significant barriers to entry once it achieves market dominance that no future competition can exist. Capitalism and the free market are nice models, but they are ultimately unbalanced. As soon as some entity has accumulated a huge portion of any given market, then that market is no longe
Re:The market is self-correcting (Score:3, Interesting)
The issue here is that mega-corporations like WalMart (and companies like them) have the ability to subsidize long periods of losses in one division (by even giving product away for FREE) to achieve market dominance and force out little players.
Once in a monopoly position, their power is even more significant, because they can further erect barriers to entry beyond simply impossibly low price expectations. For example, they begin invoking patents, pushing for new legislation
Exactly (Score:2, Funny)
As a Wal-mart stockholder with no stock in NetFlix, I think this will be very good for business.
...and no pop-under ads... (Score:4, Interesting)
I wonder if they'll have a similar "frequent renters get lower priority" scheme to what NetFlix has.
Re:...and no pop-under ads... (Score:2)
Netflix *Does* Penalize Regular Renters (Score:4, Interesting)
Finally (Score:3, Funny)
Selection problems (Score:4, Insightful)
Re:Selection problems (Score:2)
Re:Selection problems (Score:3, Insightful)
The reason why I've used Netflix (well, until recently, but that's because I've moved and don't know where I'm going end up for a bit) is so check out some anime, watch it, and return it, rather than spending $20 a pop.
I'd be surprised if Walmart went out of their way to stock titles like that - though, with their buying power, I might be surprised.
Either way, I likes compitition - because then I win.
Re:Selection problems (Score:3, Insightful)
Re:Selection problems (Score:4, Insightful)
Wal-mart's business model won't work well here. (Score:2, Interesting)
Wal-mart's greatest move (from a financial gain POV) was to move into middling-to-small towns (this means towns with 4000 people or more, or county seats) and take over the businesses downtown, the mom-and-pop stores, by slashing prices. (Whether you like that tactic is irrelevant, it was enormously successful.)
Well, how much are you going to be able to slash prices
Re:Wal-mart's business model won't work well here. (Score:2)
Re:Wal-mart's business model won't work well here. (Score:5, Interesting)
At $40 or so [walmart.com] 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.
Re:Wal-mart's business model won't work well here. (Score:2)
Re:Wal-mart's business model won't work well here. (Score:5, Interesting)
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
Re:Wal-mart's business model won't work well here. (Score:2)
Not yet, but people will see the DVD rental box and say "hey, we need a DVD player !". And smart kids will say "hey, we need a PC with a DVD burner !"
At under $50 per crappy Made In China player... (Score:2)
The only problem for me is... (Score:5, Insightful)
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.
Re:The only problem for me is... (Score:2)
Most local video stores don't have that selection, or they don't have that one arty-fartsy film I actually care about seeing "someday".
Local for the new "ultra hot" stuff or just looking for something to watch with my wife, Netflix for the stuff I already know I'd like to see "someday".
Re:The only problem for me is... (Score:2)
Re:The only problem for me is... (Score:5, Informative)
You, my friend, do not have young children. "Hey, let's go get a movie" turns into a two-hour ordeal of car-seats, crying, dropped ice-cream, potty breaks and/or diaper changes, and so on...
The reality is that you give up a little spontaneity for a lot of convenience. You don't find hopping over to the video store for a movie all that troublesome, but there are plenty of people who do. Having a movie you want to see, right at hand, when you find yourself with a couple of hours of peace is a luxury to a lot of people.
I work with a guy whose family lives in Alaska. The one video store in town has a pitiful selection. Netflix provides something they simply can't get otherwise.
As far as movies go, there is a high psychological threshold that has to be reached in order to go rent a movie. Why? Because you have to go, pay on the spot, and are committed to going back within a few days to a week to return the movie. You are less likely to rent something wierd or experiement with different tastes because, well, because, that's just how most people are. But clicking on a movie on the site is low-threshold, and I find myself putting all sorts of odd movies on my netflix list that I would almost certainly never go through the effort to rent at Blockbuster.
Re:The only problem for me is... (Score:4, Insightful)
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.
It's bad for cable companies, though (Score:3, Interesting)
You pick the movies you want, and some time, a few days later they are there to watch at your leisure, taking as long as you want, with pause, rewind FF.
Everything you want from video on demand except the ability to pick a movie right now and watch it right now.
Which turns out to be not so important after all. And it's a lot cheaper than putting in all those servers and 7 megabits to every home of highly reliable bandwidth.
Another example of the old adage that you should never underestimate the bandwidth of a stationwagon full of magtapes, except this time it's a postal van full of DVDs.
Re:It's bad for cable companies, though (Score:2)
Heh, I think I know what book YOU read! Sounds like the "Tanenbaum Text" to me!
This may not be a catastrophe. (Score:3, Interesting)
If Netflix embarks on an even semi-intelligent ad campaign, I think they have a fighting chance.
-d
i don't know (Score:2)
this usually means i have to wait a couple of days? WHen you and your spouse/bf/gf have that spur of the moment movie itch, this won't help... unless they can burn the dvd as you wait in the store. . now that would be good
Wal-Mart and family unfriendly content (Score:2, Redundant)
Wal-Mart has been in the news recently for covering up Cosmopolitan magazine. Are they going to push movie suppliers for reedited versions of films, the way Blockbuster has done?
I know that most people won't look at it this way, and Wal-Mart is an 800-lb gorilla that will probably squash Netflix. But I can't imagine Wal-Mart's politics not getting in the way of their ability to do a good job in this business.
Re:Wal-Mart and family unfriendly content (Score:2)
Censorship (Score:2, Redundant)
Except in NYC (Score:2)
bad for business? (Score:3, Interesting)
Its not "bad" for business, it is just business. It is competition. If walmart undercuts NetFlix by
I tend to not shop Amazon, beause I dont like thier policies, and i can usually find something at close to the same price. (And, I can usually get brick and mortar stores to match Amazon's price to get my sale.) I suspect the same thing will happen here. A lot of people DONT LIKE Wal-Mart.. and wont rent from them. But anything that kills BLockbuster and 48Hours is good, imho. I still think the ridiculously high price that they charge for DVD's will come down as people find it cheaper to rent them enough to get tired of them.
(Okay.. so its not so ridiculous anymore, but why does it seem the more successful the film in the theaters, the cheaper it is to get, but it costs three times that for something that is slightly more obscure? The costs of production of the DVD's should be about the same, shouldnt they?)
maeryk
Bad for business (Score:2, Insightful)
Um, yeah, maybe not for Netflix. But I thought competition was good?
Morality (Score:2, Insightful)
If they do not do this, that's fine, but if you're going to limit your selection so you don't carry 'immoral' stuff it's going to hurt you. Not carrying stuff you disagree with isn't a problem if you're the big superstore people go to for convenience, but once they reach the online arena, well, if you're going to bother renting movies online then most likely you'
You want to make some SERIOUS money? (Score:5, Funny)
Both NetFlix and the new Wal-Mart service will not carry such titles.
And if anyone out there knows of a service like this already, please, let me know
Re:You want to make some SERIOUS money? (Score:3, Funny)
Re:You want to make some SERIOUS money? (Score:3, Informative)
Private At Home [privateathome.com]
Wantedlist.com [wantedlist.com]
X4Rent [x4rent.com]
SugarDVD.com [sugardvd.com]
Video Takeout [videotakeout.com]
DVD Climax [cafedvd.com]
Bedroom DVDs [bedroomdvds.com]
And then there is RentFlixxx.com [rentflixxx.com], but they are down at the moment.
Anyway, I was bored, and know about google, so I figured I would give you a hand...
Re:You want to make some SERIOUS money? (Score:5, Funny)
Ugh. I can't think of anything more disgusting than handling something that is guaranteed to have been in the possession of someone clutching their own genitals.
Re:You want to make some SERIOUS money? (Score:3, Funny)
How about eating something that is guaranteed to have been in the possession of someone clutching someone else's genitals?
Come on now, we've all been served by a slutty chick at a diner before.
Jesu Christo.... (Score:2)
As Seinfeld put it (Score:2)
Let's me see here... (Score:4, Funny)
I guess as soon as they offer housing and, then the dream of corporate feudalism will be complete.
Long time now... (Score:2)
In fact, I concacted Netflix, and the response was quite fair...
Netflix has several distribution facilities, while Walmart has one, which means most of the US will have a nice long wait to get their titles. Netflix has a much larger library as well. Why would you use Walmart'
Re:Long time now... (Score:2)
You cannot kill that which is already dead. I consider CNN dead from the point it switched over to the "new" format and became as crappy as any other TV news.
Corporations don't need it (Score:2, Insightful)
In short, SUPPORT YOUR LOCAL BUSINESSES.
Thank you
Who's going to be working there? (Score:2)
I hope this fails miserably, or at least makes Netflix a more p
This works great if you are house-bound... (Score:2)
If you are stuck at home, this is great news. And the fact that wal-Mart can do it in a couple days is even better.
Nothing rated R at WalMart, please... (Score:3, Interesting)
I think NetFlix can survive simply on the fact that they can carry a wider selection of films...
Re:Nothing rated R at WalMart, please... (Score:3, Informative)
They still stock virtually all recent movies and a decent sel
Um how? (Score:2)
How exactly? Walmart has to compete, therefore service is better and/or price is lower. Benefit: Consumer. Netflix has a large competitor, therefore service gets better and/or price is lowered. Benefit: Consumer. Somebody'll probably win. So what? The competition is where the good stuff happens.
"If Walmart/Microsoft/Intel/*AA joins the party, then it'll automatically become a bad thing."
Tried Walmart - NetFlix is much better... (Score:4, Informative)
Walmart needs to get a greater quantity of titles before they steal significant market from NetFlix. I would also like to see Walmart enable returns/check-ins at stores (stores could bulk-main discs back to distribution sites).
Hidden Charges from WalMart (Score:5, Informative)
I currently subscribe to Netflix, and at the rate they are either lost or stolen while in route back to the Netflix warehouse, I wouldn't want to be paying that for each one! Netflix has yet to charge me for those and state they won't unless it becomes frequent.
Anyway, I'll be sticking to Netflix...
I'm joining because I hate Wal*Mart (Score:3, Informative)
I'm currently a NetFlix subscriber, but I churn 20 movies a month. They lose money big time on me. I'm going to move to Wal*Mart, and if they don't try to throttle me somehow, I'll be more than happy to have them lose money on me.
I forsee many copies of... (Score:5, Funny)
Wal-Mart, NetFlix both missing the boat (Score:4, Informative)
I liked getting anime DVDs from Netflix, but the way they kept buying only the first two or three DVDs of a six- or eight-disc series annoyed the frick out of me. I found GreenCine after a short search at Yahoo, and the site promised a greater selection of independent and anime rentals -- and they were absolutely right.
My point is, the real advantage of the online rental market should be greater selection of eclectic titles. Have you ever shopped for movies at Wal-Mart? Mainstream stuff all the way. Their CD selection is even worse. I started buying books and CDs from Amazon.com not for the prices, but because their selection was that much better, even if I lost the advantage of immediate gratification.
If people want to rent mainstream videos, then they'll always do it at Blockbuster or Hollywood Video, where they're promised "guaranteed in stock" even if they only keep it for two nights. Immediacy is more important than "keep it as long as you like" in most consumers' minds; if it weren't, we wouldn't have movie channels on cable TV at all.
So kudos to Wal-Mart for entering a new arena (for them), and may NetFlix be driven to excel even more because of it. But until they both realize the real advantages of what they're doing and offer a wider and more complete selection, I'll happily ignore them both.
Wal-Mart for the masses, Netflix for film buffs... (Score:3, Insightful)
Wal-Mart has never been anything but a mass market company, with lowest-common-denominator sensibilities. In any category, *especially* movies and music, they sell a relatively short list of only the most popular, mass market items. Michael Jackson? Sure. The latest college radio, big city hipster fave? Forget it, even if they're selling in the millions.
Netflix, OTOH, has always catered to film buffs. They'll probably lose share to Wal-mart in the most popular releases, but will continue to grow elsewhere. So, if you want "Dumb and Dumber IV," go to Wal-Mart, but if you want the Cannes winners, indie greats, art films or classics, you're more likely to find them at Netflix.
What's so bad about wal-mart? (Score:3, Insightful)
May I ask someone knowledgable on the subject what can be "evil" about a department store, I have personally been to shops that are overpriced, with bad service or crappy goods but never one that is as morally black as I am told wal-mart is, come on! It's just a frigging retailer!
Re:Blatant copy? Details Please (Score:2)
Heh, oops (Score:2)
Re:Thanks, but No Thanks (Score:5, Insightful)
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
Re:Thanks, but No Thanks (Score:4, Insightful)
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
Sure I can write a better browser
Re:Limited Market (Score:4, Insightful)