Technology

Walmart Takes on Netflix With Video Streaming Website

NEW YORK (AP) — Now playing: Movies at Walmart.com.

The world’s largest retailer on Tuesday started streaming many movies the same day they come out on DVD, in a second bid for a share of popular movie rental and streaming website Netflix Inc.’s business and just two weeks after Netflix announced new price increases.

Wal-Mart Stores Inc. bought video-streaming service Vudu.com 18 months ago and now offers 20,000 titles that can be viewed on almost any device with Internet access, from computers to televisions to Sony’s PlayStation3 and other Blu-Ray disc players.

Movies are available at Walmart.com to rent for $1 to $5.99 or to purchase for $4.99 and up. Wal-Mart is not offering subscriptions, making its service more similar to Apple Inc.’s iTunes, which charges $3.99 to rent newly released movies and $14.99 to buy a movie.

In addition to Netflix, another competitor streaming movies and TV shows by subscription is Hulu.com, which now offers a premium service for $7.99 a month with more back-season shows and more movies. Without a subscription, Hulu viewers can watch shows and movies free in exchange for watching advertising.

The movie offering fits with the Wal-Mart website’s strategy of offering a “seamless continuous shopping service,” said Steve Nave, senior vice president and general manager of Walmart.com.

Wal-Mart’s announcement comes on the heels of Netflix saying it will raise rates and charge separately for streaming and rental DVDs. Its second price hike in eight months, Netflix’s planned increases could amount to 60 percent for existing customers, starting Sept. 1. New subscribers have to pay the new prices immediately.

Netflix plans to charge $16 a month for services that used to cost $10 a month when bundled together, for example. It’s still changing $8 a month for streaming, which it launched late last year. But instead of charging $2 more for a plan that includes one DVD at a time by mail, the company will charge $8 and up for DVD plans.

Customers have taken to social media sites Facebook and Twitter to vent their anger over Netflix’s increases, but executives said they anticipated the reaction. The company’s willingness to risk alienating subscribers signals it needs more revenue to cover rising costs.

As of March, Netflix had 22.8 million subscribers in the U.S. — about 34,000 more than the number of households subscribing to Comcast Corp.’s cable-TV service.

Wal-Mart, based in Bentonville, Ark., has tested the movie-rental waters before. It previously offered a DVD-by-mail service that cost $12.97 per month for two titles and $17.36 per month for three titles. But it ceded that program to Netflix in February 2010, letting customers continue their subscriptions with Los Gatos, Calif.-based Netflix without a rate hike. Apple is based in Cupertino, Calif.

Comments (33)

  • dunny123
    Posted on July 28, 2011 at 6:41pm

    Walmart is VERY anti-gun!They might sell a few ,but they stand with HILARY !

    Report Post »  
  • EQUALBALANCE
    Posted on July 28, 2011 at 12:12pm

    Walmart destroying small towns is a myth, probably promulgated by the Unions. I live in a small town. About 15 years ago a Walmart Super Store moved in. Many, including myself, thought that the small biz in town would suffer. It did not. To the contrary, many new businesses moved in. We lost a clothing store within a year due to the 87 year old owner retiring….that’s it. We have a thriving Tops Market across the street. They were once very high priced. Since Walmart moved in, Tops has had to become competitive, and both businesses are doing well. Walmart keeps them honest. Also, it is hard to find any store with friendlier people working there. I was a skeptic and have become a believer. Quit just believing the party line (read UNION) and see for yourself.

    Report Post »  
  • Mil-Dot
    Posted on July 27, 2011 at 12:41pm

    The fact of the matter is that she is right. The entitlement mentality is sucking the very life out of our country. Free money for drug addicts and alcoholics, free medical care and schooling for illegal aliens. Welfare queens with 8 kids getting $1500 per month per kid, spending millions to keep 80+ year olds alive for a few more months. It just keeps going on and on. At some point the system collapses and all of the leeches will be on their own. They will perish. If they try to steal, they will be shot. Good luck.

    Report Post »  
    • dunny123
      Posted on July 28, 2011 at 6:25pm

      EX-congresswoman,Cynthia Mckinney,and the people who elected her are a prime example of how right YOU are my friend !

      Report Post »  
  • iHeartReagan
    Posted on July 27, 2011 at 8:22am

    Well said muzikant!!!

    Report Post »  
  • Midwest Blonde
    Posted on July 26, 2011 at 10:09pm

    The thing about Vudu is you pay per movie – rates that are higher than our local video store, and MUCH higher than Redbox.

    What I like about Netflix is that I can get old movies that I really want to see again.

    What I don’t like about Redbox is that all their stuff is fairly new. No chance to see an oldie-but-goodie.

    I was happy with Netflix streaming video plus dvds. I’m not happy about the price raise.

    Report Post » Midwest Blonde  
  • mr.goodvibe
    Posted on July 26, 2011 at 9:12pm

    When does the flashmob start?

    Report Post » mr.goodvibe  
  • dellt
    Posted on July 26, 2011 at 9:05pm

    I like Walmart, I do not blame them for driving away small mom & pop groceries, that happened a long time ago. Those old enough can remember when mom & pop stores were the norm with one or two chain grocery stores in mid sized towns. You can not blame their demise solely on Walmart, times change and the then popular chain stores were the Walmarts of today – they more so than Walmart drove the mom and pops out of business – it’s called progress.

    Report Post » dellt  
  • Kbob
    Posted on July 26, 2011 at 8:55pm

    I’ve been working as an RPh in a Wal-Mart for about 6 years. It’s in a small town on the Texas coast that has positively thrived since Wal-Mart came into town maybe 15 years ago. The key is don’t try to opened a discount store! The Ace hardware offers products you cannot find in WM. The Independant RPh is doing gangbusters, he doesn’t always beat our prices, but he delivers. The bakery in town makes better donuts and people are willing to pay more. The WM keeps 100′s of people employed and they spend moneyin the other stores. If people aren’t earnin, their not spendin. People need to find a niche….and fill it.

    Report Post »  
  • gambit5555
    Posted on July 26, 2011 at 1:57pm

    This stupidity about Walmart destroying small towns is idiocy. These sound like the rantings of business owners who couldn’t figure out how to compete. Walmart provides hundreds of jobs in the towns they locate in, and provide residents with lower priced products. I love people who are only willing to support capitalism as long as it works for them. I work for a direct competitor of Walmart, wanna know the secret to survival? Provide better service, better quality products, and more variety.it’s really not the difficult. Just providing better service will keep a large percentage of your customers. But I understand that is too much work for some people. And that’s why they go out of business. Competition makes a market thrive.

    Report Post »  
    • sWampy
      Posted on July 26, 2011 at 2:33pm

      How do you compete when Walmart has 1000 times your buying power, so they can charge much less, has signed deals with the state/federal government so the government picks up $3 an hour or more of their labor cost, while refusing to do the same for small businesses, and they strike a deal to pay no local taxes for 10 years, while the local government doubles your taxes to make up for the tax hole left since Walmart doesn’t pay? These kinds of deals put all the retail businesses out of business in small towns across America, there was no way for them to compete.

      Report Post »  
    • NuffSaid
      Posted on July 26, 2011 at 2:50pm

      You are right. Remember when KMART was the biggest discount store? Talk about terrible sevice, it looked like you need to be on crack to apply at KMart. The crap they sold was inferior including their clothes and household products.

      I am not glad that Walmart gets so much from China, but they are a good store, well managed and always seem to have what I need.

      Report Post »  
    • 4blackhorses
      Posted on July 26, 2011 at 7:07pm

      @ SWAMPY,

      I don‘t know where you’ve dregged up the statistics your trying to pass off but all I can say it your call name is a good description for where you’ve been soaking your head.

      Report Post »  
    • sWampy
      Posted on July 26, 2011 at 7:34pm

      What statistics I was being very conservative, walmart has orders of magnitude more buying power than any mom and pop store that only buys enough stuff for a town of 3 to 5 thousand, only a complete moron would deny that. My dad worked 40 years for the department of labor, the $3 an hour was again pretty low estimate, the actual programs changed over time, but they were between state and federal programs, Walmart and other national retailers, casinos, government contractors, etc were offered $3-$6 an our credit for hiring what the government considered deserving people. This really hurt small businesses that weren’t offered these programs, they not only had huge disadvantage buying maybe 50 gallons of milk a week compared to walmart’s millions of gallons, but then they had to pay their employees $3-$6 bucks an hour more than Walmart because Walmart qualified for the credits. Plus Walmart was usually not paying any property taxes, no garbage fees, free water, etc due to deals they cut with local officials for favors like campaign contributions beyond what a small store could ever dream of giving.

      Report Post »  
    • muzikant
      Posted on July 27, 2011 at 3:20am

      Exactly, and people like sWaMpY are lousy liberals that do not understand economics.
      First of all, Walmart has “ 1000 times your buying power” because it made the best business model and got there from scratch.
      sWampY, prove that they make a deal with the fed govt to cover $3 an hour wage. If they strike a deal to pay no local taxes, that is with the local govt. They are well worth it. Look how many jobs they bring in, how the neighborhood improves because of them. and what tax hole? you freaking liberals always think that there is always a tax hole. Thr govt already has too much . they just appropriate it worng on blood-sucking parasites like you!
      Because of walmart, more people become taxpayers. Because of walmart, more people are able to afford stuff that they otherwise would not. Businesses like walmart improve the quality of life all around them. Because of them,Target has improved.

      I will bet that even SECRETLY or openly, YOU, sWaMpY, shop the ALL THE TIME – because you know it is good and cheap,

      Report Post » muzikant  
  • cranberry
    Posted on July 26, 2011 at 1:44pm

    I’m very disappointed in Netflix. I thought they were the best deal out there until they raised their prices. Now I am considering using them only for the streaming, and Redbox for the new movies.I don’t mind a small increase but almost doubling the monthly charge? Holy Cow. I am going to get half of what i got before from them. They are getting GREEDY. Period.

    Report Post » cranberry  
  • bullcrapbuster
    Posted on July 26, 2011 at 11:47am

    What is this bullcrap about Walmart destroying small towns. That simply is not true. It is liberal looney union Bullcrap period.

    Report Post » bullcrapbuster  
    • sWampy
      Posted on July 26, 2011 at 2:42pm

      You should go to some small towns around America, many that once had vibrant downtowns, now have a shopping area that consists of a walmart surrounded by a few fast food places and nothing else, they have lost their charm, and it will be very difficult for them to ever get it back. The towns/states did it to themselves, the states offered walmart deals that subsidized walmart’s labor costs by paying $3-$4 per hour of their labor cost if they would hire poorly educated people and train them, this cost walmart next to nothing, they spent a small amount of money for them to produce some dvd’s they showed new hires they used as training, 100k for them to do this was nothing for walmart, but out of the question for small town stores to do. Then the mayors and city councils/counties gave walmarts 10 year tax exemptions while going up on the taxes of established businesses. Combine these 2 with walmart’s huge buying advantage/distribution channel, family stores folded in mass.

       
    • RabidPatriot
      Posted on July 26, 2011 at 2:58pm

      Union socialists and hardcore liberals hate Wal-mart. Wal-mart does not allow unions. They can freely get rid of bad employees. They do not have to subsidize Big Union anti-business politics. Their workforce works more efficiently. They make their money by selling high volume at low prices. It is true, if you are a small town business that makes your living by overcharging your small town for your goods, Wal-mart will end your monopoly. Some of these small town businesses lose their stranglehold on the community and go out of business. The towns are better for it. The only people that hate it are those that loathe change and don’t mind paying $5 for a loaf of bread.

      Report Post » RabidPatriot  
    • sWampy
      Posted on July 26, 2011 at 3:57pm

      Oh, good god Walmart doesn’t give small towns bargains, they put the small town stores out of business, then they jack their prices once they are a monopoly. No they can’t do this to towns of 50K-100k, but really small towns of a size say 3k-5k they destroy. These small towns are the heart and soul of America, this is where our food is produced, our small industries that pump our limited run made in America boats, discs, trailers, furniture, etc, these towns are the equivalent of the small business, no they aren’t big, put they provide the base everything else lives on. Has nothing to do with unions , it has to do with stupid governments screwing with free market. Normally Walmart wouldn’t come to these small towns and destroy them, but when state/federal government subside their pay by half, and local greedy government drones give them tax breaks they don’t give others, they can make enough to come there. They do gang busters, the small companies go out of business, walmart raises their prices, ten years are up, no more tax breaks, they leave, residents are stuck driving 30-100 miles to shop, eventually they will move away, the land will be bought by the Chinese, some big corporation, or the government will take it for taxes and this part of America will be gone forever.

      Report Post »  
    • the_ancient
      Posted on July 28, 2011 at 6:13am

      @Swampy

      1> Show me your evidence that any government has ever directly subsidized payroll for walmart….

      2> If small shops want to compete with Walmart then they should have specialized or offered some service that Walmart does not. I am not going to buy apples or burgers for 3X the amount just because some small shop owner feels they are entitled to my business because they are “local” Each Walmart is a “local” store run by “local” people for the most part and they are paid a fair wage.. Sure the stock boys and cart pushers make minimum wage, but your local store owner you want to protect would not pay more than that either for that position, why BECAUSE THAT IS ALL THAT POSITION IS WORTH…. get above the entry level jobs and the salaries jump significantly.

      3> The only thing I agree on is the tax exemptions. I wish all local governments would stop doing that, but that is really about the only bargaining authority local governments have, and in reality, if the local governments get a share of sale taxes + employee payroll taxes, the increase revenue from that is more than the empty field would have brought in…

      Report Post » the_ancient  
  • TheLoneConservative
    Posted on July 26, 2011 at 11:16am

    @Scott Unless something has changed, the difference between Hulu Plus and free Hulu is what shows are available – you still get the ads with Hulu Plus. Kind of a rip off, imo.

    Report Post » TheLoneConservative  
  • isobamamadd
    Posted on July 26, 2011 at 10:50am

    I stopped shopping Wal-mart years ago. they are too big,can’t stand how they destroy towns. Busy bustling Down towns in smaller cities are boarded up after this company moves in ,selling mostly Chinese goods.

    Report Post »  
    • Wishkah
      Posted on July 26, 2011 at 12:17pm

      sure would love to see any evidence you have for those statements… sounds like pure urban legend to me.. the usual crappola spewed by those haters who just love to hate the ‘big boys

      Report Post »  
    • TheLoneConservative
      Posted on July 26, 2011 at 1:07pm

      @ISOBAMAMADD I do a lot of hunting and fishing – mainly around small towns. Walmart is those towns is the happening place, with people hanging out. Everyone knows each other, and a good chunk of the town works at the store. I don’t know where you get your information, but from my perspective, Walmart does more good then bad.

      Report Post » TheLoneConservative  
    • IAMMADDOG
      Posted on July 28, 2011 at 3:14pm

      I live in a small town….Walmart has been here for a few years. The only businesses that have gone out of business were going out before Walmart got here. Otherwise the small town destruction BS is urban myth.

      Report Post »  
  • the_ancient
    Posted on July 26, 2011 at 10:40am

    They tried to take on Netflix before and lost,

    They will lose this time as well. Walmart needs to stick to Retailing, their Other Ventures have been complete Failures, From Cell Phones, to Internet Access, from DVD’s by mail to now Streaming…

    Leave that stuff to the people that do it well, and just keep providing me me cheap crap.

    Report Post » the_ancient  
  • American Soldier (Separated)
    Posted on July 26, 2011 at 9:44am

    I use Netflix. Once you’ve had it for about two months it becomes worthless. I haven’t seen a new movie released on it in months. MONTHS. So I turned to hulu. The article is misleading, you still get the exact same amount of advertisements on Hulu plus as you get with their free service. The only difference is, you only get the last 4 or 5 episodes of a TV show on Hulu free, to watch the entire series you need Hulu plus. I’ve also tried VUDU since my new TV came with built in wifi and $6 trial for VUDU. I don‘t know if it’s my wireless router that is causing this but I have fast internet (10mb/s a second which I download the average file at 2MB/s) but i can barely play SD quality without constant buffering. Netflix I can watch just fine without lag. Hulu lags sometimes but not as bad as VUDU.

    I do like VUDU in that the movies come out very quickly after DVD release. My only issue is, how can Redbox (which I used to use all the time) can offer 1080P blu-ray movies for $1.50 but VUDU has to charge $5.99 for the same movie and quality. Redbox has to actually BUY all those DVDs/Blurays and yet still able to offer it for $1.50. Why can’t Vudu at least get it down to under $1 since they don’t have to buy any physical DVDs, at least not as many as Redbox requires. There are 20 redboxes (some of which have double kiosks) around my town and for most new movies, I‘d assume they’d have at least 2-3 copies of new releases in each. That‘s a lot of bought DVD’s nationwide.

    Report Post » American Soldier (Separated)  
    • Dismayed Veteran
      Posted on July 26, 2011 at 12:17pm

      We use Red Box as our sole source. Their market plan works.

      Report Post » Dismayed Veteran  
    • orionreplay6607
      Posted on July 27, 2011 at 6:56am

      I wish we had a Redbox. I actually have only seen it in pictures on news articles about this Netflix price update. I’d like to see what it is and how it works.

      Nevertheless, we cherish our Netflix subscription, 1-disk + instant viewing. Even with a price hike. The countless shows available to my 4yo daughter to watch is outstanding. Movies for us is lacking. Heck, I went on a rampage this past weekend trying to find an oldie-but-goodie 80s film, but according to Netflix all the ones I found were only available on disk. I was disappointed.

      With our local Netflix warehouse only a 2 hour drive away, our disk returns are expedient and my wife can watch her “chick flicks” (as she calls them) nearly every other night when I’m on travel. When I want to see something in the future, she replaces her top with my title, and I have it two days later.

      Heck, we don’t even have a Blockbuster or other type of brick-n-mortar rental store. So we do what we can. I‘m sure I’m not alone.

      Report Post » orionreplay6607  
  • smithclar3nc3
    Posted on July 26, 2011 at 9:14am

    No one should use the Walmart video site,,,,,Wakmart is destroying America town by town killing smaller business and selling most imported materials. Walmart is an enemy to America. I willing never ever shop at one after seeing what it has done to America’s small business

    Report Post »  
    • HADEN0UGH
      Posted on July 27, 2011 at 9:43am

      Haha you’ve officially drank the kool-aid.

      My town is bustling now. We went from one Walmart and Sam‘s Club to three Walmart Supercenters and a Sam’s Club. We also have mom and pop stores that offer products that Walmart doesn’t carry. Oh and we have a Target as well – why isn’t Target considered a town killer?

      We are capitalists – one of the reasons why we are the greatest countries in the world.

      Report Post » HADEN0UGH  

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