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News, opinion, and links from Editor in Chief Harry McCracken.

Netflix Gobbles Up Wal-Mart DVD Rental

Posted by Harry McCracken | Thursday, May 19, 2005 8:12 AM PT

Wal-Mart has departed the online DVD rental business after less than two years, doing a deal with Netflix in which Wal-Mart will sent online movie renters to Netflix and Netflix will promote Wal-Mart for disc purchases.

Back when Wal-Mart launched its service, there were plenty of predictions that it would spell serious trouble for Netflix. But the retailing giant's online service never took off--back in February, Business 2.0 reported that Netflix had 2.6 million customers while Wal-Mart's service had a piddling 50,000. In retrospect, this isn't surprising: When a Web-only company has invented a business that makes sense, it's proven practically impossible to unseat it as the market leader. (Think of all the hopeless, money-wasting attempts to take on Amazon and eBay.)

As a consumer, I'm sorry to see Wal-Mart bow out--one less competitor is one less reason for Netflix to keep prices reasonable. Of course, with Blockbuster still in the game--Business 2.0 said it has about 500,000 online customers--Netflix still has plenty of reason to work hard to make its customers happy.

Me, I'm the kind of customer Netflix probably loves: I have an account, but never seem to have as much time to devote to movie-watching as I'd like...so I pay the company my monthly fee and don't use it that much. (I've had one disc sitting on top of my TV for the better part of a year now.) But when I do use it, the service is amazingly slick and fast.

Are you a customer of any of the Web-based DVD rental outfits? And if so, are you a happy one?
Comments (18)

I have been with Netflix for several months. Service has been very good and turnaround has been fast. I have received 3 discs (out of roughly 100) that were damaged. The damage was easily visible when the discs were removed from the envelopes. I think if Netflix really scanned discs before sending them out they would have been caught. The DVD "Adaptation" for example was completely broken in half. Netflix has however, been very prompt about any damaged items that I have reported. I like the service and at this point feel that I will continue to use it.

Alfred Whitehead
May 19, 2005
9:12 AM PT

We use Blockbuster and have been happy. We probably will, however, catch up on never movies we were not able to see in theatres and cancel when we've done that. Service has been great. Most movies order are received in a day and returns seem to get back the day after mailed. I do have to say, though, you are nuts to pay for Netflix month and month and not use it! Return that DVD on top of your TV and cancel until you have time to use it. Wasting money like that is just plain stupid.

Ryan Healey
May 19, 2005
9:25 AM PT

I was a Netflix member for several months until the turnaround time per DVD increased from 2 days to almost 5 days. I continued for a while and switched to Blockbuster Store (not online!). Though Netflix has a far better collection to boast of, the wait for the new flicks was simply too long!

Anurag
May 19, 2005
9:26 AM PT

I have been a Netflix customer for 3 years. In the 200+ DVD's I have rented, only one was defective and was replaced immediately. Their turnaround is 3-4 days and their website is incredibly user friendly and expansive. I get first run new releases on new, never viewed disks by listing these movies in my queue when they release to the theaters. Lose a disk? No sweat. They write it off. Nothing like great flicks on your home theater in dolby...no cellphones, no yaking, no teenagers. Netflix is the best, and seems to carry every movie ever made.

Richard
May 19, 2005
10:11 AM PT

I've been a Netflix subscriber for over a year, and am very pleased with the service. They have a huge and varied selection, turnaround has been fast, and their customer service has been exceptional. Case in point: I've twice had DVDS take 2 weeks to get back to them via USPS. Seeing this, I reported it, and assumed I was in for a bad time. However, they basically took a "stuff happens" approach and fired off my next selection!
(Both DVDS got to them eventually...)
Made me feel like they really give a damn about pleasing the customer, which is getting harder and harder to find these days. Based on my experiences, I would recommend them very highly.

Douglas Kirkendall
May 19, 2005
10:15 AM PT

I was an original Netflix customer when the service first started and had been for nearly 3 years. I was unhappy when Netflix raised their prices from $19.99 to $21.99 last year and put up with the increase until Blockbuster?s online service started. I was very happy with Netflix?s turn around time on mailing and their selection of movies is unmatched. I switched to Blockbuster because of the price increase and was not as satisfied as with Netflix. The selection wasn?t the same and the turn around time was just a bit slower. I think Blockbuster?s website is not quite as good as Netflix?s. I know at some point Netflix decided to not carry adult DVD?s, but I think their business would explode if they did so.

T Rhodes
May 19, 2005
10:18 AM PT

I was a Netflix customer for a while and then tried out Wal-Mart when they started up because they were cheaper. Wal-Mart was terrible. Not only was their selection not as extensive as Netflix, it took at least a week to get a new DVD, where Netflix was only a couple of days. I figured, "why slightly less for a service you can't get as much use out of?", so needless to say, I switched back to Netflix.

Sadly, though, with the demise of Wal-Mart's DVD service, Netflix was free to bring their price back up a couple bucks.

Mark
May 19, 2005
10:33 AM PT

I was a Netflix customer a couple of years ago but cancelled after a year.

Because of two recent additions to my family, I signed up for Blockbuster.com, since Netflix did not have many baby videos, like Baby Einstein. I have been very happy with the speed and selection of Blockbuster.com.

One really nice feature that I believe Netflix does NOT have is that every month I get two coupons that I take to a local Blockbuster to rent two movies for free.

Better selection, two free rentals at a local store, Blockbuster.com got my business.

Chris G
May 19, 2005
11:53 AM PT

Sometimes thinking Old School works also. I just check out DVDs from my local public library. Seven days to view and and costs absolutely nothing as long as you return on time.

Anne
May 19, 2005
2:37 PM PT

I've been using Netflix for more than two years. The service has been exceptional. I rarely have a problem with damaged disks and turn around time is usually just a day or two. The one gripe I do have is that new members get priority on new releases. We old timers get put at the bottom of the waiting list. When I was a new member I received new releases very quickly. Now they all say "very long wait" even if they've been at the top of my queue weeks before the official release date. I guess it's just their way to make sure new customers stick around for awhile.

Ken
May 19, 2005
5:06 PM PT

I use Greencine. It is a company out of San Francisco. The turnaround has been incredibly fast. The customer service is excellent.

Although they don't have as many brand new titles as NetFlix, they probably have the best selection of hard to find/cult classic movies. They have TONS of Anime. They even have adult titles if that's your thing. I'm a big Anime fan and usually when I hear about something, they already have it. If you want something that they don't have, all you have to do is email them and they will get it if it is available.

I love my Greencine

Brandon
May 19, 2005
5:36 PM PT

I have been using Netflix since the VERY beginning, when they had cardboard mailers and offered 4 movies at a time for 15 bucks a month. Due to financial crises, I have had to put them on hold a couple times, but I was always anxious to get back. I tried Walmart, but their selection was too limited for a real movie buff like me. I also tried Blockbuster, but even with the 2 free in-store rentals a month, they just can't cut it; too many damaged/dirty discs, not enough selection and too few copies of popular movies. About a third of BB's discs I had to clean before watching, and over 40% of my queue was almost always full of "long wait" movies. Plus, now that Netflix has increased the number of distribution centers (one in my city), turnaround is ALWAYS 1 day. I'm watching about 17-20 movies a month, so many that I rarely even watch cable! Even with 2 free rentals, I simply can't get those numbers with BB. Their only value to me is to hopefully keep a bit of a cap on Netflix's prices, though in all fairness, I'm getting more than my money's worth.

Toulinwoek
May 19, 2005
7:22 PM PT

I started using Netflix about 3 years ago. I was very happy in the beginning, but after 11 months I found the turn around time from 2 days to 7-9 days. I also experienced as a older customer not being able to view the new movies just released and I would be on the "Very long wait" list. I then was searching around the web and seen that Walmart had DVDs so I gave them a try I was a customer with Walmart for over a year and was very happy with the turn around time and their over all service. I am disappointed that they have decided to stop this part of their business. I am now searching for a new company to go with. Anyone know any other company besides Netflix?

Melody
June 02, 2005
7:12 AM PT

I started using Netflix about 3 years ago. I was very happy in the beginning, but after 11 months I found the turn around time from 2 days to 7-9 days. I also experienced as a older customer not being able to view the new movies just released and I would be on the "Very long wait" list. I then was searching around the web and seen that Walmart had DVDs so I gave them a try I was a customer with Walmart for over a year and was very happy with the turn around time and their over all service. I am disappointed that they have decided to stop this part of their business. I am now searching for a new company to go with. Anyone know any other company besides Netflix?

Melody
June 02, 2005
7:12 AM PT

Very happy with Netflix :)

Eddy
August 09, 2005
2:26 PM PT

I have been a NETFLIX customer for over 3 yrs and they are great. I get my DVD's in 2 days.
I would like to tell you about Intelliflix another online DVD rental. I kept Netflix, but wanted to try Intelliflix for a month to compare. Customers need to know they are bad. They do not ship from the closest locations, like they say. I signed up on March 4th. I got my first 3 DVD's on March 10th. None of the ones I received were from the top of my queue. The DVD's also came from all over the US. I live in Missouri and according to their info, there was one rental store in my city and 4 in a near-by city. I have yet to receive any rentals from Missouri. I have complained to them, over and over, but they only sent me 2 extra dvd's. Which of course took well over 5 or more days for me to recieve. I have had 2 lost dvd's in the short time. The last one took 10 days to get to me from California. I will not continue the membership. They must have people shipping from all over, maybe out of their homes? who knows. I know they come to me with a regular stamped envelope. Not like Netflix. Also you cannot call them. Only email contact is allowed.
Please do not refer them, as they will probably go out of business soon. As their customer service just don't seem to solve the many problems I have had.
GO GO NETFLIX ++++++AAAAAAA!!!

FYI I am also a subscriber of all your newsletters and your magazine also.
Thank you PC WORLD for all your committement to your customers, keeping them advised always on the products and software out here

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