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.
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.
