Walmart is also nipping at their heels. They have over 700k subscribers now and are going into their season. I think many new DVD players come packed with a 10 day free trial...
Ed...
<<10/16/02
Wal-Mart plans online DVD rental foray
BENTONVILLE, Ark., Oct 15 (Reuters) - Wal-Mart Stores Inc. <WMT.N>, the world's largest retailer, said on Tuesday it has begun testing an online service that would allow customers to rent DVDs for a monthly subscription fee of $18.86.
Based on the feedback gathered from an initial group of customers, the DVD rental service would be fine-tuned before it is rolled out nationwide next year, Wal-Mart said in a statement.
Wal-Mart's foray into DVD rental comes as the popularity of the versatile medium continues to increase. DVD discs allow users, among other things, to fast forward and rewind with ease and experience vivid pictures and crisp sound. DVDs also offer added features, such as director and actor interviews, trailer spots and video games.
Wal-Mart, which sells movie videos and DVDs in its stores but does not rent them, said during the test period only a limited number of customers will be able to sign up for the service, in which customers order DVDs online and receive and return them through the mail.
The new Wal-Mart service mirrors that offered by Netflix Inc. <NFLX.O>, which rents DVDS from its Web site for $19.95 per month.
The DVD venture would also pit Wal-Mart indirectly against the world's No. 1 video rental chain Blockbuster Inc. <BBI.N>, which does not offer an online service.
As with Netflix, customers of Wal-Mart's DVD rental service would pay only the monthly subscription and would not be charged late return fees or postage, Wal-Mart said.
Wal-Mart did not say how many DVDs customers would be able to have out at any given time for the $18.86 fee. Netflix customers can rent as many as three at a time.
Wal-Mart customers would choose from a library of more than 12,000 titles, a similar number of DVDs that Netflix says it carries. >> |
