Wal-Mart frustrates Netflix, drops online DVD rentals to $12.97 a month
posted Jan 10th 2005 4:43PM
We'll most likely holdout for them to drop the price to a nice round $9.99 a month, or at least wait for the
introduction of an army of child laborers to hand deliver our DVDs to us before signing up, but Wal-Mart has apparently
decided to more or less bankrupt Netflix (and take on Blockbuster) by dropping the price of their monthly online DVD
rental service to just $12.97 a month. Not like they're offering as fine a selection of movies as you'll find at
Netflix or many other companies, it's just that in the long run there might not be enough people willing to spend the
extra $5.02 a month that Netflix costs simply to get access to a lot of the more obscure (and less family-friendly) DVD
titles Wal-Mart isn't going to carry. Most people who rent movies aren't exactly going to be pissed that Wal-Mart
carries only one Dusan Makavejev film.
[Via Digital Media Thoughts]
UPDATE: Shoot, forgot to note that the cheapo plan is only for their 2 DVDs at a time service, whereas Netflix's $17.99 price is for 3 at a time. Thanks for everyone who kindly brought this to our attention.
is it just me or does anyoelse feel like going up to walmart and just kicking them in the 'nads... bullys...
is it just me or does anyoelse feel like going up to walmart and just kicking them in the 'nads... bullys...
For those that care, the Walmart price drop is for the 2 movies out at a time plan (unlimited). Netflix does not have a directly comparable plan since their 2 movies at a time plan is not unlimited.
Wal-Mart
$12.97 2 Movies out at a time (unlimited).
$17.36 3 Movies out at a time (unlimited).
Netflix
$11.99 2-at-a-time (4 rentals a month)
$17.99 3-at-a-time (unlimited)
Spending money at Wal-Mart supports their poor labor practices, unfair business practices, and generally poor customer service.
Proud to say I didn't spend a dime at Wal-Mart in 2004.
Wal-Mart is charging $12.97 for their 2 DVD-at-a-time plan. Netflix charges $11.99 for this type of plan, except theirs is limited to 4 movies per month.
For the "industry standard" 3 DVDs-at-a-time plan, Wal-Mart is charging $17.36 and Netflix is charging $17.99. (Not that much more to pay for a better service).
I'm not sure if the pricing has really changed - the main difference I see is that Wal-Mart is marketing the price of their 2 DVD plan rather than the 3 DVD plan. I'm not sure if convincing people that they don't really need to rent as many movies is a good move for the industry as a whole, but it might persude some new customers to chose Wal-Mart over Netflix. We'll see if Netflix reacts by making similar changes.
To me the allure of netflix is all those obscure dvd titles. if i wanted to rent lord of the rings or some other big hollywood flick i'd just go to blockbuster.
Doesn't this remind anyone of walmarts online music sales biz at 88cents a song or whatever...they didnt exactly take over that market just by being cheaper.
Hopefully people will realize that cheaper isn't always better and also that walmart sucks balls.
Apples to Oranges people!
The difference between Walmart and Netflix is huge. Walmart is in so many businesses, and since they are the largest retailer of DVD movies, they have a conflict. This is Netflix's only business, and besides faster turnaround (meaning less cost per movie each month), plus they have cool new services like "Friends" (queue sharing) and now "Profiles" (multi-user rental accounts). The winner is Netflix for now.
Blockbuster is still going through growing pains, but they are gaining on Netflix. If they integrate store rentals and online this summer, as expected, it should be an interesting battle to watch.
Also, with Amazon already launched in the UK, this might be a 4-way fight.
- Mike
http://www.HackingNetflix.com
suprised no one mentioned cinemanow.com (...as an alternative).
Are we talking about the Wal Mart film rental service where the Japanese foreign section consists of 20 DVDs and includes...
Tora, Tora, Tora
and
What's up Tiger Lilly
Not to be too much of a snob, but that is sad.
I bet Wal-Mart has more copies of "Smokey and the Bandit" than NetFlix does!
Um, yeah. Wallmart has $10 pants and just because they are cheaper than normal jeans, doesn't mean I'm going to go there. Walmart is for families of six who's names all start with the same letter. I think I will stick to being able to rent a movie that has vulgarity/cursing/nudity in it. Thanks Walmart.
Just in case you're wondering, blockbuster's 3-out plan is $14.99 (+ 2 free in-store rentals)
And for the record, Walmart's service is fine. Timely delivery, and all the vulgarity/cursing/nudity you could want. Switched to blockbuster for the 3-out plan and 2 in-store rentals (easier for getting titles for the kids)
This may be a little off topic but I think turn-around time should be discussed when comparing these plans from different companies.
To a large extent, turn-around time depends on where you live in proximity to the closest distribution center. Netflix has 29 nationwide distribution centers (listed below). Blockbuster has 10 (listed below). However, according to the December 2004 edition of Retail Merchandiser, As of mid-January BlockbusterOnline will have 23 distribution centers, more than double the service's distribution capacity when the service launched in August 2004. Blockbuster also asserted early last year (by their Senior VP, Shane Evangelist) that they would use their regular stores to distribute movies. No evidence has surfaced as yet that this is going to happen. As of last year, Walmart had 8 distribution centers (listed below).
I had both Blockbuster and Netflix and mailing movies back from the same mailbox on the same day, I would get my Netflix movies back 2-3 days faster. This was largely because Blockbuster was shipping them from 3 states away as opposed to Netflix, which was in my state.
Netflix 29 distribution centers:
Baton Rouge, LA
Chicago, IL
Cleveland, OH
Columbia, SC
Coppell, TX
Denver, CO
Duluth, GA
Flushing, NY
Ft. Lauderdale, FL
Gaithersburg, MD
Greensboro, NC
Harrisburg, PA
Houston, TX
Kansas City, MO
Lakeland, FL
Lansing, MI
Las Vegas, NV
Louisville, KY
Minneapolis, MN
New Brunswick, NJ
Phoenix, AZ
Pittsburgh, PA
Rochester, NY
Salem, OR
San Jose, CA
Santa Ana, CA
St. Louis, MO
Tacoma, WA
Worcester, MA
Blockbuster distribution center list (as of last year):
Charlotte, NC
Dallas, TX
Denver, CO
Lansing, MI
Miami, FL
Minneapolis, MN
Flushing, NY
Sacramento, CA
Santa Ana, CA
Seattle, WA
Walmarts distribution center list (as of last year):
Arkansas
California
Georgia
Indiana
Johnstown, NY
Nevada
Macclenny, FL
Netflix wins hands down as Walmart has a super slow turn-around. However, Netflix can learn from the pr0n industry and have some innovative plans. For e.g. they could save on postage by bundling DVD's while shipping them.
Bushdvd.com has become everybody's darling for having the cheapest 4 DVD plan by shipping 2 DVD's in one envelope. They save, We save.
'We never had late fees'
Folks:
Take a stand, Netflix pioneered the DVD by mail business and did a great job. They took the risk to open the market. Now Walmart, the largest company in the world, wants to "compete". Walmart can undercut any competitor, by running at a loss, and drive them out of business because they have very deep pockets. They have already forced Netflix to drop their price by a $1 or 2, and the margins are very slim in this marketplace. Dont let them suck up this market also, spend the extra $1 or so and keep the people who had the vision in business. This is a quality of life in America issue. Unless Netlix really screws up and does something asinine, we should, as a country of innovators, reward the innovators. As for Blockbuster, every time I have given them my card (in the last 15 years) they ask me to prove that I have a wife who opened the account. This just pisses me off, I have a card they gave me and yet for a decade and a half they cant figure out who I am. Are there that many spousal identity thefts perpetrated to further the stolen video market that they cant figure out a decent membership tracking system. I do not support entrenched mediocrity either so off with there heads as well. Nuff said.
Hmm. My Cable provider just told me that HBO was being raised to $13.00 p.m. (well $12.99 actually). I am serious;ly considering dropping HBO and geting one of these DVD by mail plans. AT least that way I will get the films I really want. After all I can always watch the HBO original stuff on DVD.
walmart sucks. unless you appreciate and can find the benefit in, child labor and the such.
The DVD by mail business will not last forever. Even Netflix themselves recognizes that; thus, the partnership with Tivo. Competition is always a good thing in that what Walmart and Blockbuster is doing is forcing Netflix to innovate. If Netflix doesn't, well then, the writing is on the wall for them.
To paraphrase Jay and Silent Bob Strike Back, "Fuck Wal-Mart. Fuck them up their stupid asses."
What is wrong with a little competition? Are you guys at Engadget against competition?
Neflix has changed the way I watch films period. I bought a 65" HD set last year and am watching the movie business shrink the wait time from theatre to dvd to about 5 months. I ususally wait until the disc comes out to see a film at about a 1.00 a pop at home.
Also, I cannot say enough about the title selection that they have. Thanks to them, I can see just about every Criterion collection title there is. I could never find them anywhere else, and have them delivered to my door.
I seriously doubt I could see any Criterions at Wal-mart or Blockbuster. I watch about 4 titles a week with ONE day turnaround here in Minneapolis. Just unbelievably awesome.
amen brotha!
i've been on & off with these guys through college and since it's ended i've been doing the netflix thing since college ended some 4 whatever years ago and i love it. netflix, kozmo.com and homegrocier ruled, totally lived on these(kozmo was speed dial #7 on my phone for a bit). it feels good to still be supporting netflix for having a great idea and doing it well. i'm glad that they've gone so far and i really don't want to see blockbuster or walmart(gag) profit off of their idea. even if walmart undercuts them horribly(which they will because that's how they operate), i'm still going to be a netflix subscriber. hope the rest of the crowd will too.
"Folks:
Take a stand, Netflix pioneered the DVD by mail business and did a great job. They took the risk to open the market. Now Walmart, the largest company in the world, wants to "compete". Walmart can undercut any competitor, by running at a loss, and drive them out of business because they have very deep pockets. They have already forced Netflix to drop their price by a $1 or 2, and the margins are very slim in this marketplace. Dont let them suck up this market also, spend the extra $1 or so and keep the people who had the vision in business. This is a quality of life in America issue. Unless Netlix really screws up and does something asinine, we should, as a country of innovators, reward the innovators. As for Blockbuster, every time I have given them my card (in the last 15 years) they ask me to prove that I have a wife who opened the account. This just pisses me off, I have a card they gave me and yet for a decade and a half they cant figure out who I am. Are there that many spousal identity thefts perpetrated to further the stolen video market that they cant figure out a decent membership tracking system. I do not support entrenched mediocrity either so off with there heads as well. Nuff said."
amen brotha!
i've been on & off with these guys through college and since it's ended i've been doing the netflix thing since college ended some 4 whatever years ago and i love it. netflix, kozmo.com and homegrocier ruled, totally lived on these(kozmo was speed dial #7 on my phone for a bit). it feels good to still be supporting netflix for having a great idea and doing it well. i'm glad that they've gone so far and i really don't want to see blockbuster or walmart(gag) profit off of their idea. even if walmart undercuts them horribly(which they will because that's how they operate), i'm still going to be a netflix subscriber. hope the rest of the crowd will too.
"Folks:
Take a stand, Netflix pioneered the DVD by mail business and did a great job. They took the risk to open the market. Now Walmart, the largest company in the world, wants to "compete". Walmart can undercut any competitor, by running at a loss, and drive them out of business because they have very deep pockets. They have already forced Netflix to drop their price by a $1 or 2, and the margins are very slim in this marketplace. Dont let them suck up this market also, spend the extra $1 or so and keep the people who had the vision in business. This is a quality of life in America issue. Unless Netlix really screws up and does something asinine, we should, as a country of innovators, reward the innovators. As for Blockbuster, every time I have given them my card (in the last 15 years) they ask me to prove that I have a wife who opened the account. This just pisses me off, I have a card they gave me and yet for a decade and a half they cant figure out who I am. Are there that many spousal identity thefts perpetrated to further the stolen video market that they cant figure out a decent membership tracking system. I do not support entrenched mediocrity either so off with there heads as well. Nuff said."
Screw Walmart......keep buying everything from them and Home Depot, etc....and there will be only those companies left. Kind of like an alternative Orwellian future that I want no part of. And while I'm at it.....screw Micrsosoft too......:)
I love my netflix, and i am one zipcode from the duluth ga center so i get my movies superfast.
I use to work for wal-mart, and love the company, but let someone else have a business.
Walmart and Blockbuster should both go fuck themselves! Between Walmart controlling what I can and should see and Blockbuster's late fees these fuckers want to rule the world.
Long live Netfilx!!!
I love my city because they opposed the opening of a Walmart here: http://www.creativeresistance.ca/awareness/2002-july04-wal-mart-opposition.htm This means I can still shop at local, unfranchised stores where prices are cheaper than superstores and the staff are friendly and recognize me. :-]
Having said that, perhaps what Netflix needs is a two-tier service: a cheap one with a reduced library to compete with the Walmarts for the average customers, and a regular one for the more sophisticated folks. (they may already have this, I'm not really into the scene).
If I download a DivX movie from bittorrent, watch it on my 18" lcd w/ 5.1 speaker+sub, then delete it the day after.. shouldn't that be alright?
Far quicker than mail.
I just signed up for the blockbuster movie pass at a local store, $29.99 month, 3 movies out at a time. I go and get six movies for the month and I'm already up three bucks. I would love to get netflix, but I don't see how I can make money on the service. I just don't have a set schedule that I can plan when I get to watch some movies. So now I can go down to the local store on the way home from work and pick out my three movies. Watch them. Return them and maybe get some more. Or, rip them to hard drive, watch them when I feel like it. If there was a service that delivered movies in DVD quality (ie 720x480) in DTS or Dolby Digital and had ALL the extras that are on the disc to my computer and let me watch them using something other than microsuck winblows media player I would use it. I didn't spend $10,000 on a DLP projector and 7.1 Denon powered surround sound in my home theater (powered by a lowly pIII 500mhz homebuilt beauty running xp home and THEATERTEK (which by the way kicks ass)) to watch some crappy rip of a dvd in DIVX or WMV or some other COMPRESSION!!! I for one don't hate walmart. I fail to see how a locally owned business can have lower prices. One of the reasons Walmarts prices are so low is because they buy in bulk. Local businesses do not. I do support some local business, only if they are willing to cut me a break and not charge me full retail. Remeber, ALL businesses are in business to make MONEY. Walmart isn't the only business out to make a buck. Competion is good. Yes Walmart will undercut the others, but the others stick around when they have a good product. Netflix seems to have a great product so I think they will compete nicely with walmart. Yes, you can find "spicier" titles at the walmart stores, but I don't know about online, I haven't checked it out.
But if you pay $14.99 for blockbuster's service, you also get 2 in store rentals, plus whatever else you get online. Last time I rented something from them it was at least $4 per movie in store, so with those 2 free ones, you cover half the cost(more if you rent games).
I have been strongly considering signing up for one of these things when I'm in my final destination, but right now I've a movie pass type thing at Hollywood Video that I "beta tested" around 6 months ago. I say beta because there were only a few locations that were doing it at that time, to see if they would continue doing it. The deal is $19.99 for 2 movies out at a time, unlimited rentals. At the time I could have selected $24.99 for 3 out at a time, but it didn't seem worth it. They've since changed it(don't know details) to something not as good, but if Hollywood Video signed up with Netflix to offer free in store rentals, I'd be more inclined to sign up with them over blockbuster.
NetFLix will blow donkey nuts. Nobody is stupid to pay more.
For a bit of comparison: I joined Netflix in 2001 when they offered an unlimited 2-at-a-time subscription for $14 and I still get that deal under a grandfather clause. So yeah, that's a buck more than Wal-Mart but it's worth it on a) turn around time, b) selection and c) principle.
I've been using Netflix since 2001, and haven't set foot inside a video store since then. Their site is fast and easy to use. In SF, I usually get 2-day turnaround on my movies. Netflix covers about 80% of my viewing needs. In addition I only have basic cable, and I purchase a handful of DVDs. In the end, I'm going to choose the service with the best overall value, but I've grown to feel a lot of loyalty to the company, and I hope they can withstand the Blockbuster and Walmart assaults.
I use Gameznflix.com
which has the best deal. Annual plan is 8 out at a time for 14 months, for $222. They have Games and Movies. I hope they do well, for competition is a "good thing".
I have more movies in my NetFlix queue than Walmart has in their selection.
OK, I exaggerate, but half of them probably aren't available at WalMart. I'm doing a film-school education courtesy of NetFlix. $17.99 a month is cheap tuition.
Try the service for yourself. I put approx 25 titles in my queue. In my first month of service (2. chance) with GZFX I got 7 movies. For me that is more than enough for one month -I wouldn't have time to watch any more than that.
The service WAS terrible. I guess everything is getting better now with the company!
Now I get DVDs with a 2-3 day turnaround time after mailing them out.
Cheapest around and great service!!!
Odd thing.
Walmart's video rental service and Netflix use the same PO Box here in the Northwest...
Netflix turn around time has become so bad as of late it's not even funny. For the first 4-5 months of membership I was able to turn around roughly 6 movies per week. However, it appears Netflix decided to put an end to this and has resorted to delay tactics to limit my activity. Currently it takes Netflix 8 days to turn around a movie for me and I live in a city with a distribution center. Netflix still recieves my movies within a day according to the website, but now they just let them sit in "shipping tomorrow" status for at least three days. Needless to say I will be canceling my subscription at the end of this month.
I've been the editor of a DVD rental site for some time now, so I'll give ya some free advice here: Blockbuster is eager to dominate the market, so they're doing a great job of processing rentals in and out (i.e. you'll get 'em quick). But if you're just looking for the best free trial and lowest price, go with Walmart. If you're looking for a cross between service, free trial, and price, go with Netflix. Easy enough? You can check out more at http://www.dvdrental101.com/ ... PS - Look out for Amazon - they've got something big in the works!
Tony S,
Will Amazon do Online Rentals? Would they buyout other companies, such as Netflix or another? Sure is getting interesting.
Frankly, I couldn't care less if Walmart is the Evil Empire or not. I'm starting with their 2 DVD package, and if I need more, I'll upgrade to the company with the best pricing. Lower prices = more money for me to spend on other things, which benefits the economy more than spending more money to keep Netflix alive because they were there first.
If you want the lastest information in Online DVD Rental or discuss your experience with any dvd rental service companies - http://online-dvd-rental.blogspot.com/ have it all. Amazon is definitely a strong player in the online dvd rental. They might enter the market sooner than you think.
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