Wal-Mart Tests Online DVD Rental Service

Posted on October 25, 2002

Wal-Mart plans to rent DVDs to customers through its walmart.com website beginning with a test of the new service called Wal-Mart DVD Rentals. The company launched the test for Wal-Mart DVD Rentals in October and, based on feedback it gathers from an initial group of customers, will fine-tune the service before rolling it out to all customers nationwide next year. The service will compete with other online DVD rental services such as NetFlix.com.

"Our customers have long counted on Wal-Mart for quality family entertainment. With our online DVD rental service, we will be able to deliver even greater convenience and selection to our customers -- all at everyday low prices," said Gary Severson, senior vice president and general merchandise manager for Wal-Mart Stores, Inc., the parent company of both Walmart.com and Wal-Mart DVD Rentals.

Customers can sign up for Wal-Mart DVD Rentals at walmart.com. Only a limited number of customers will be able to sign up for the service during the test phase. The monthly subscription rate is $18.86. The customer pays only the monthly subscription and is never charged a late fee or postage. Through Wal-Mart DVD Rentals, customers will be able to choose from more than 12,000 titles.

"We know from industry figures and our own sales figures that about a third of all households in the U.S. have DVD players. And that number is growing," Severson said. "From new releases to old favorites from independent films to foreign films, we believe we will be able to meet a wide variety of viewing interests."

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