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Wal-Mart Kicks Netflix When It's Down

NEW YORK ( TheStreet) -- As investors and subscribers call into question the future of Netflix (NFLX - Get Report), Wal-Mart (WMT - Get Report) is looking to take advantage of the situation.

The retail behemoth on Tuesday began streaming many movies the same day they come out on DVD through its Vudu service. Wal-Mart purchased Vudu last year, and currently offers 20,000 titles on the site. Users can watch movies with Internet access and via devices like Sony's (SNE)PlayStation 3 and Blu-ray players.

Movies cost between $1 and $5.99 to rent and can be purchased for $4.99 and up.

Wal-Mart's Vudu does not offer a subscription option, making it a bit different than Netflix's service.

This comes as Netflix takes a hit following its disappointing second-quarter revenue and weak forecast.

Netflix announced earlier in the month that it is raising its subscription rates, breaking up its popular DVD-by-mail and streaming service. It will now cost users $16 per month for access to both vehicles, compared with the most recent price of $9.99.

In its earnings release, Netflix addressed concerns regarding the price hike: "Some subscribers will cancel Netflix or downgrade their Netflix plans. We expect most to stay with us because each of our $7.99 plans is an incredible value. We hate making our subscribers upset with us, but we feel like we provide a fantastic service, and we're working hard to further improve the quality and range of our streaming content in the fourth quarter and beyond."

As a result of the possibility of some subscribers canceling their membership, and as content costs increase amid new partnership deals, Netflix's forecast was a bit muted.

For the third quarter, the company is calling for a profit of 72 cents to $1.07 per share on revenue of as much as $828 million. Wall Street was calling for a profit of $1.09 a share on revenue of $840.5 million.

Competition has been heating up for Netflix. Most recently, Amazon (AMZN - Get Report) announced a partnership with CBS (CBS), which will give it access to the network's library of television programs.

-- Reported by Jeanine Poggi in New York.

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