Retailer to end online DVD rentals, promote Netflix
Thursday, May 19, 2005 | 9:32 a.m.
Wal-Mart Stores Inc., the world's largest retailer, closed its online video rental business today and agreed to refer customers to Netflix Inc., ceding the fast-growing market to the company that pioneered it. Netflix shares soared as much as 24 percent.
Walmart.com, whose Web site now tells visitors to "Join Netflix," is offering rental customers the option of becoming subscribers of Los Gatos, Calif.-based Netflix, the companies said today in a statement. Netflix, the No. 1 online movie rental service, will promote Wal-Mart's movie sales on its site.
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