and Netflix Announce New Promotional Agreement; Online Retail Companies Team to Promote Each Other's Core Businesses

May 19, 2005, 01:00 ET from from ,Netflix

    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 --'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 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.'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 ( ), 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, both at its
 website ( ) 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  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 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 .  Online merchandise sales are available at .
     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 .
     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; Netflix