Rent-a-DVD gets trial at Wal-Mart
by November 25, 2002 12:00 am 61 views
In October, Wal-Mart started a “trial” online DVD rental service that appears to be a direct challenge to Netflix, which was founded in 1998 by Reed Hastings and has more than 742,000 subscribers.
In “everyday low prices” fashion, Wal-Mart’s monthly charge for the service is $1.09 less than Netflix — $18.86 compared to $19.95.
Netflix allows customers to keep DVDs indefinitely with no late fees.
Wal-Mart will be doing the same thing. Wal-Mart offers 12,000 DVD titles from its Website, www.wal-mart.com. The DVDs are mailed to customers in paper packages, which also contain a return envelope with postage paid.
Wal-Mart’s trial may be followed by a full-blown launch next year.
Blockbuster, the world’s largest movie rental chain with 8,000 stores, bought a small online DVD retailer this year, but the company’s CEO, John Antioco, believes the vast majority of Blockbuster’s 48 million customers will still be renting from its brick-and-mortar stores.
Blockbuster’s service, online at FilmCaddy.com, also charges $19.95 per month.