Wal-Mart Cuts DVD Rental Service Pricing

[Kent Pribbernow]

<div class='os_post_top_link'><a href='http://www.walmart.com/catalog/catalog.gsp?cat=5430&path=0:5430' target='_blank'>http://www.walmart.com/catalog/catalog.gsp?cat=5430&path=0:5430</a><br /><br /></div><img src="http://www.digitalmediathoughts.com/images/WalMart_Logo.jpg" /><br /><br />Wal-Mart is living up to its slogan promise of <b>Always Low Prices. Always</b>. In a move that will surely spark off a price war in the online DVD rental wars, Wal-mart has lowered its service pricing from $15.54 to $12.97. That's the lowest pricing plan yet for such a movie rental venue. By contrast, Netflix charges $18 for its service. It's going to be interesting to see whether they can match Wal-mart, which they haven't been able to do so far. <br /><br />I should have chosen a more appropriate title, like...<i>"Wal-Mart bitch slaps Netflix"</i>. :lol:

[sundown]

Wohoo! I save a few bucks and they get to kill another competitor. THAT'S GREAT! It'll be so much easier to pick who I do business with when there is only one company in the business!

Not.

Ya know, I hope I'm wrong about this but I can forsee a day when a Chinese retailer will whip Walmart's butt. Someday we'll all be lamenting the death of Walmart in our towns because some retailer with big pockets and cheaper junk will take a loss just to put them out of business. Then we'll all cry about how unfair it was.

[ChunkyMonkey]

Do what I do if you don't like it. Buy from someone else. I often will go with someone else if the price is a bit higher for something...but only if that company makes up for it in their service. If Wal Mart beats on price and service of the same exact product, I will go with Wal Mart everytime.b

[Kent Pribbernow]

Don't be so dramatic. :roll: Wal-mart isn't going to put anyone in the online DVD rental market out of biz just yet. The sector is too young for that. This is where smart, talented executives at Netflix and elsewhere use this opportunity to add VALUE to their own services rather than simply cutting prices to match wally-world. Perhaps offer incentives that Wal-mart doesn't...or offer a greater selection of content.

[VanHouten]

Walmart charges $12.97 for 2 out at a time/unlimited, Netflix charges $12.99 for 2 out at a time/4 max a month.

For for the most popular plan, three out at a time/unlimited, the pricing is:

Walmart $17.36
Netflix $17.99

That isn't a bitch-slap at all. It is a small difference in price for a big difference in service. Most people have judged Netflix to be better than Walmart.

If you want to see a substantial difference, compare Netflix/Walmart to Blockbuster online.

Blockbuster gives you three at a time/unlimited plus two in-store game or movie rentals for $14.99 a month.

[treo007]

Yea, I don't know about any "bitch slapping" either. I'll pay a few dollars more for Netflix's much wider selection.

I haven't tried Wal-Mart, so I don't know what their service is like, but I can say that I'm extremely pleased with Netflix in that department as well.

[treo007]

Walmart charges $12.97 for 2 out at a time/unlimited, Netflix charges $12.99 for 2 out at a time/4 max a month.

For for the most popular plan, three out at a time/unlimited, the pricing is:

Walmart $17.36
Netflix $17.99

That isn't a bitch-slap at all. It is a small difference in price for a big difference in service. Most people have judged Netflix to be better than Walmart.

If you want to see a substantial difference, compare Netflix/Walmart to Blockbuster online.

Blockbuster gives you three at a time/unlimited plus two in-store game or movie rentals for $14.99 a month.

Great point. Not surprising also in that this is Wal-Mart's traditional business model:

In their brick and mortar stores, they admittedly put low-end products at the entrance to a given department and sell these at prices near, or even below, cost. Going further into the same department however, you'll find slightly higher-end products at prices equal to or even greater than what you'd find at competing stores in the same area.

[Kent Pribbernow]

Walmart charges $12.97 for 2 out at a time/unlimited, Netflix charges $12.99 for 2 out at a time/4 max a month.

What? I have seen no mention of any such plan on Netflix's web site. Only the $17.99 plan is listed. :?

Second, Wal-mart's $12.97 (2 movie) plan is unlimited.

[Neil Enns]

In related news, Blockbuster just dropped their pricing for 3/unlimited to $15. This includes two rentals a month from a retail location as well.

Neil

[Doug Johnson]

I'm kind of wondering how big of a potential market this is anyway... you have to _consistently_ rent a lot of movies for this to pay off.

Personally, it is much better for me to use the pay-per-view service of my satellite provider, or my MovieBeam service. I can't possibly justify even $12.97 per month for the 2-3 movies (if that, usually less) I can fit in in a month...

Or maybe even better... put that $12.97 towards purchasing a DVD. My DVD colllection now is over 300 movies and on average I don't spend much more than about $20 per month. And in the end I get to keep the discs!

[VanHouten]

Walmart charges $12.97 for 2 out at a time/unlimited, Netflix charges $12.99 for 2 out at a time/4 max a month.

What? I have seen no mention of any such plan on Netflix's web site. Only the $17.99 plan is listed. :?

Second, Wal-mart's $12.97 (2 movie) plan is unlimited.[/quote]

The 2 at-a-time at Netflix is one you can change to once you have signed up. I don't know if there is anyway to sign up directly to that plan. They have additional plans for more movies, I don't know the prices since I have switched to BB's service.

Second, Wal-mart's $12.97 (2 movie) plan is unlimited.

Walmart's 2-at-a-time plan is definaty better on the surface. But Walmart has half the number of titles of Netflix and from what I've heard about Walmart's service (turn-around time, website, etc.), it isn't nearly as good as Netflix.

[Ed Hansberry]

Walmart charges $12.97 for 2 out at a time/unlimited, Netflix charges $12.99 for 2 out at a time/4 max a month.

What? I have seen no mention of any such plan on Netflix's web site. Only the $17.99 plan is listed. :?

Second, Wal-mart's $12.97 (2 movie) plan is unlimited.
Netflix has a 2-at-a-time (4 rentals a month) for $11.99 plan. Their 3 ($17.99), 5 ($29.99) and 8 (47.99) are unlimited.

Like others here, I'll stick with Netflix. Great selection and one of their warehouses is 1 day away from here, so I often get next day service through US mail. :D

[Philip Colmer]

Or maybe even better... put that $12.97 towards purchasing a DVD. My DVD colllection now is over 300 movies and on average I don't spend much more than about $20 per month. And in the end I get to keep the discs!
I'm with you on this, Doug. With movies on satellite plus personally owned DVDs, I don't see any benefit for me in renting DVDs.

Most of our DVD purchases happen for birthdays and Christmas.

--Philip

[odeon2000]

The Wal-mart 12.95 is for 2 DVD, it's 17.95 for three , just like Net Flix.