Not that this stock needs any help from me, but in doing my homework, I actually subscribed for a month to both the Netflix and Wal-Mart DVD rental services. I don't doubt that Wal-Mart has the ability to improve themselves, but I must say they aren't nearly as good in the service department today.
Two things (arguably the most important things) really stand out: 1) speed of delivery/return, and 2) selection/availability.
On 1) I selected online from Netflix three titles on a Monday afternoon. I received two of them on Wednesday and the other one on Thursday. When I sendd them back, they go to Worcester, MA, just 50 miles from me (I am in Boston), and the show up as received one to two days later. With Wal-Mart, the titles took 3-4 days--and the place they have me sending them back is in upstate New York. It took just as long to get back.
On 2) I picked six titles from Netflix and all were available. I picked six from Wal-Mart and one was available, two were on "short wait," and three were on "very long wait." A "very long wait," as they decribe it, is 4-5 months!
This is the kind of testimony that will determine who wins. I still have my Netflix subscription. I don't have the other one.