This market has been dominated by NetFlix in recent years, and I’ve considered subscribing but never have. My biggest hestitation has been that since I’ve got TiVo and HBO, Showtime, and Encore, I see most of the movies that I want. I can’t justify $20 for DVD rentals.

Walmart certainly has some strategic advantages, notably their huge revenue base. They could simply outlast NetFlix and Blockbuster. Or they could just buy NetFlix.