Trader Mike

Some great news for NetFlix this morning (via Briefing.com):

07:30 NFLX Netflix: On website, Wal-Mart says to discontinue its current DVD Rentals service… points customers to NFLX!

-Update- See 7:29 comment.

07:29 NFLX Netflix: Wal-Mart teams up with Netflix (15.50 )

Wal-Mart posted the following page on their website: “Great opportunity for current members of Wal-Mart DVD Rentals! Through June 16, 2005, you can sign up with Netflix and get all the Netflix benefits for the same rate you now pay at Wal-Mart!… If You Do Not Sign Up With Netflix After June 16, 2005, Wal-Mart will discontinue its current DVD Rentals service. If you are a Wal-Mart DVD Rentals member and do not sign up with Netflix, you can continue to …

In case you missed it (like I did), CNBC is re-airing ‘The Age of Wal-Mart‘ Sunday at 9 PM, again at midnight (12 AM Monday) and at 10PM on Monday. I’ve seen clips of it and read/heard some comments about it and it seems intriguing. (The Donald even called in to congratulate David Faber on it this morning.) Fast Company posted some commentary about it. Set those TiVos.

This is interesting, given all the hype over RFID - Wal-Mart cancels ’smart-shelf’ trial.

Wal-Mart is stepping up their assault on NefFlix. They’ve lowered their prices, and are expanding their service. I think they have a much better chance of being successful in this space than Blockbuster because they don’t have the same cannibalization issues. I’m partial to NetFlix because I’ve been a customer for so long, and I’d like to see the little guy win. But I think their stock is in for some short-term pain due to this Wal-Mart threat.

Edit to add: More discussion of this battle here.

Fortune magazine, in their intro to this year’s Fortune 500, explains just how big Wal-Mart is compared to the other 499 companies. Here are their thoughts on what it would take for them to fall from the #1 spot:

…is there any scenario in which Wal-Mart is not No. 1 next year? Improbable but not impossible is that oil prices rise–yet not so far that SUV drivers stop filling up–pushing Exxon Mobil into the lead for a year. Barring that scenario, here’s the best we could do:

- All the defense companies on the list (Boeing, Lockheed Martin, Raytheon, and four others) merge to form Military Industrial Complex Inc. Total revenues: $162 billion. Not even close. …