Netflix has been claiming for a few months they aren't really worried about competition from Wal-mart and Blockbuster in the online DVD subscription rental market. Or even an entry by Amazon into that market. They are worried more about movies on demand over the internet or provided by cable. That argument always made sense to me. But now, we find even more support for this reasoning.
Yup, they weren't worried about Wal-mart because they were in negotiations with those crooks to run their DVD rental business.