BRISBANE, Calif. and LOS GATOS, Calif., May 19 /PRNewswire-FirstCall/ -- Wal-Mart (NYSE: WMT) and Netflix (Nasdaq: NFLX) today announced a joint promotional agreement covering their core online movie businesses -- Walmart.com's movie sales and Netflix's DVD movie rentals. Now, these two online retail companies, each with strong, complementary expertise in online movie services, are engaging in a promotional arrangement to market one another's key movie business at their respective websites. As movie sales at Walmart.com continue to accelerate, the company is strengthening its commitment to this core business, and as a result, is discontinuing the Wal-Mart DVD Rentals service. Walmart.com's existing DVD Rentals customers will be offered the option to become Netflix subscribers at their current Wal-Mart rate for one year from the date they sign-up. Via its website (http://www.walmart.com/movies ), Walmart.com will also promote and refer customers interested in online DVD rentals to Netflix. In return, Netflix will promote Wal-Mart's online movie sales business, including the pre-order price guarantee option at Walmart.com, both at its website (http://www.netflix.com ) and in mailers sent to Netflix subscribers. The pre-order price guarantee ensures customers the lowest available price on pre-order movies. "We've experienced tremendous growth in our online movie sales, and are committed to enhancing our focus in this business at Walmart.com. We're equally excited to team with Netflix, the pioneer of online movie rentals, which not only distinguishes both of our core online competencies, but offers a complementary solution of value, service, and convenience to customers," said John Fleming, Wal-Mart's executive vice president and chief marketing officer who also oversees Walmart.com at the executive level. Added Netflix co-founder and CEO Reed Hastings, "This agreement bolsters both Netflix's leadership in DVD movie rentals and Wal-Mart's strong movie sales business, while providing customers even more choices and convenience. Both companies will continue to expand their respective leads in providing the best in movie entertainment to millions of online customers." About Wal-Mart Stores, Inc. Wal-Mart Stores, Inc. operates Wal-Mart Stores, Supercenters, Neighborhood Markets and SAM'S CLUB locations in the United States. Internationally, the company operates in Argentina, Brazil, Canada, China, Germany, Japan, Mexico, Puerto Rico, South Korea and the United Kingdom. The company's securities are listed on the New York and Pacific stock exchanges under the symbol WMT. More information about Wal-Mart can be found by visiting http://www.walmartfacts.com . Online merchandise sales are available at http://www.walmart.com . About Netflix Netflix is the world's largest online movie rental service, providing more than three million subscribers access to over 40,000 DVD titles. Under the company's most popular program, for $17.99 a month, Netflix subscribers rent as many DVDs as they want and keep them as long as they want, with three movies out at a time. There are no due dates, no late fees and no shipping fees. DVDs are delivered for free by the USPS from regional shipping centers located throughout the United States. Netflix can reach nearly 90 percent of its subscribers with generally one business-day delivery. Netflix offers personalized movie recommendations to its members and has more than 500 million movie ratings. Netflix also allows members to share and recommend movies to one another through its Friends(TM) feature. For more information, visit http://www.netflix.com . Forward-Looking Statements This press release contains certain forward-looking statements, including statements regarding customer referrals to the Netflix service, promotional undertakings, and the expanding lead in movie entertainment. The forward looking statements in this release are subject to risks and uncertainties that could cause actual results and events to differ, including, without limitation, the willingness of existing Wal-Mart DVD rental subscribers to transfer their subscription to Netflix, the limited number of subscribers eligible to transfer, the limited nature of Netflix's promotional undertakings, the ability of Netflix to attract new subscribers and retain existing subscribers, and impacts arising from competition. A detailed discussion of these and other risks and uncertainties that could cause events to differ materially from such forward-looking statements as they relate to Netflix is included in Netflix's filings with the Securities and Exchange Commission, including our Annual report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2005. Netflix undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
SOURCE Walmart.com; Netflix