Retail giant Wal-Mart has quit offering an online DVD rental service and instead will promote Netflix. 500 million surfers visit Wal-Mart's website annually, so it will be a major boost for Netflix which has been struggling lately. Netflix was hit by competition from Blockbuster and both have been waging a price war for months. "This is big," Fulcrum Global Partners analyst Stacey Widlitz said. "That's pretty significant for (Netflix). I would say they are gaining back some traction in the fight with Blockbuster."
Netflix charges $17.99 per month for customers to rent three DVDs at a time. So now with Wal-Mart out of the way, it is up to just Blockbuster and Netflix to rival. Shares of Netflix jumped as much as 24% and touched their highest level since August, before rival Blockbuster launched its own rental service.
Source:
Yahoo












