Wal Mart the retail leviathan who makes shop owners quake at the mention of its name has backed out of the online DVD rental marketplace. The company has entered into a relationship with Netflix whereby it will instead direct its customers to the pure-play DVD rental business.
Wal Mart has kept on keeping on with a number of under-performing businesses over the years such as its German retail arm, so the Netflix deal and withdrawl from the marketplace is a bit of an uncharacteristic turn. It makes you wonder what’s next for the chop, its online music business?Netflix are best known in the UK for their aborted market entry which stopped before they started. The company recruited a marketing team, touted for PR agencies and then promptly shut up shop.
Reuters have the full skinny on the Wal Mart deal here.