Netflix and Wal-Mart Team Up
Netflix announced a deal with Wal-Mart last week in which Wal-Mart agreed to close its online DVD rental business and direct their customers to Netflix, while Netflix agreed to promote Wal-Mart Stores for buying DVDS on its website and packaging. Under the special terms, Wal-Mart online customers can enjoy Netflix’s services at Wal-Mart’s rate for one year. It’s a very significant deal for Netflix, the world’s largest online DVD rental service with three million subscribers, and Wal-Mart, the world’s largest DVD retailer. Netflix hopes to reach four million subscribers by the end of the year, with its sole competitor Blockbuster currently having only 750,000 subscribers.