Netflix Knocks Out One Challenger

from Associated Press: Wal-Mart Stores Inc. is turning over its online DVD rental business to Netflix Inc., signaling that the world’s largest retailer couldn’t beat the Internet upstart at its own game.
Shares of Netflix surged after the agreement was announced Thursday, rising $4.38, or 28 percent, to $19.88 in pre-market trading.
Wal-Mart is offering its existing online DVD rental customers the chance to continue their subscriptions with Los Gatos-based Netflix at their current price for the next year. Those who don’t sign up with Netflix by June 17 will lose their service. Wal-Mart plans to continue promoting the Netflix service on its Web site.
In return, Netflix will remind its subscribers that they can buy DVDs from Walmart.com.

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About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am head of brand strategy and creative at Bonehook in Portland, Oregon.