Wal-Mart is exiting the online DVD rental business and forwarding all new customer applications to Netflix. The two companies have decided to ally with each other with Netflix promoting DVD sales on Wal-Mart while Wal-Mart promotes DVD rentals on Netflix. It’s a win win for both companies and potentially a bad situation for Blockbuster. This may also give Amazon.com a reason to not enter the U.S. business since they would be going up against the combined forces of Wal-Mart and Netflix.

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