Wal-Mart, Netflix Team for DVD Rentals

Online movie rental store Netflix and Wal-Mart announced on Thursday a partnership to replace the brick-and-mortar store's online DVD rental service with a co-branded rental site from Netflix. In return, Netflix will feature Wal-Mart's online DVD store as its recommended site for movie purchases both on its site and through e-mails.

Exisiting rental customers of Wal-Mart's Rental Service will be offered a deal where they can sign up to Netflix at their previous monthly rate for a period of one year.

"We've experienced tremendous growth in our online movie sales, and are committed to enhancing our focus in this business at Walmart.com," John Fleming, Wal-Mart.com vice president said in a statement.

"We're equally excited to team with Netflix, the pioneer of online movie rentals, which not only distinguishes both of our core online competencies, but offers a complementary solution of value, service, and convenience to customers."

In Mid-April, it was rumored that Amazon.com was looking for a partner for an online rental service. Thursday's announcement would mean that Blockbuster would be the only other remaining large-scale service that would be available for such a partnership.

No details were given as to when the partnership would take effect. As of press time, neither site showed any details of the announcement other than a press release in the press sections of the Web sites.