After Netflix announced depressed third quarter projected earnings on Tuesday, Wal-Mart struck back.
To get a bigger share of the market, Wal-Mart announced it's offering many movies the same day they come out on DVD. Wal-Mart already offers 20,000 streaming movies through Vudu.com, which can be viewed on over 300 Internet-connected devices.
On "The Early Show," Jason Cochran, contributing editor for DealNews.com, said Netflix has ripped a page from the airline playbook.
"(They've) unbundled their services," he said. "It used to be you pay you pay $10, have streaming movies unlimited and also be sent DVDs. Now if you want them you have to pay for them separately. If you want to keep the old services you had, pay $16 a month, rather than $10, does not make people happy."
How and why did Christmas become such an urgent talking point? Consider – if the 2nd quarter gdp numbers are revised and just the slightest dip into negative territory occurs. Consider if the 2nd quarter gdp numbers dip and many expect the 3rd quarter and the 4th quarter to dip deeper into negative territory. Consider what happens if the 2nd, 3rd, 4th quarters are officially declared negative gdp quarters. After three consecutive quarters of negative gdp, the National Bureau of Economic Research declares it an official recession.
Would you like to be running for reelection in January 2012 as a double dip recession is declared? Would you want to lose your “blame the previous guy” strategy? No you would not. So start setting the trap now. In July.
Why invoke Christmas in the heat of July? Because you have to set up the Republicans for the hit. This Friday the Obama calorie counters will announce which bills will be paid and which bills will not be paid – its ramp up the fear time. But today it’s Christmas gift boxes packed with explosives.
“The latest consumer confidence report aside, Americans are still apprehensive, especially about their jobs, and that fear is likely to weigh on consumer spending in the months ahead, according to one retail industry consultant.
Burt Flickinger, managing director of retail consultantcy Strategic Resource Group, said the U.S. has just entered a 500-day retail recession, and before it’s over, the U.S. will see weaker retail sales, more store closures and even additional retailers joining Borders in bankruptcy.”