Wal-Mart Kicks Netflix When It's Down

NEW YORK ( TheStreet) -- As investors and subscribers call into question the future of Netflix ( NFLX), Wal-Mart ( WMT) 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) 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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