# WalMart online rentals shut down....



## cboylan3 (Jan 26, 2004)

...points online customers to NetFlix. Netflix to promote Walmart DVD sales.

http://money.cnn.com/2005/05/19/technology/personaltech/walmart_netflix.reut/index.htm?cnn=yes


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## cdru (Dec 4, 2003)

I was always surprised that Wal-mart rolled it's own rental business. Wallyworld has always been about price. Provide a product at the absolute lowest price (for them) while maximizing their income. The overhead for providing the logistics, membership, customer service, accounting, etc had to have been significant. There is a reason why Target, Toys/Babies-R-Us, Office Depot, etc all sell through Amazon. They don't have to provide all the support infrastructure while still having an online presence with sales.

It's a win-win situation for both sides with going with Netflix. Wal-mart still probably gets a cut of the pie though referrals, gets (some) added business through retail sales. Netflix gets significantly more marketing ability and a bunch of new customers.


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## Jacob S (Apr 14, 2002)

Wal-Mart could use the money towards advertising the Netflix service to generate more revenues than doing it on its own. Less risk on their end.


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