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.
Netflix Rebounds
With the market for online DVD rental getting more and more players, Netflix has announced a big win. Wal-Mart is turning over its online DVD rental service to Netflix, and is urging its current users to transition over to the