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Netflix Inc., the Internet DVD rental company, reported an 87.9 percent increase in subscribers in 2002, with 857,000 at the end of the year.

Netflix has more than 12,000 DVD titles that it rents to subscribers for a flat fee of $20 a month, sending them through the mail with no late fees or return dates. Members are limited to three DVDs checked out at a time.

Netflix was pretty much competition-free until a couple of months ago, when Wal-Mart announced it was getting into the business.
KC's View:
We know people who swear by Netflix…but who were instantly intrigued by the notion of Wal-Mart offering a similar service.

Just a hunch, but we think it will be instructive to watch how Netflix copes with this new competition, coming up with ways to differentiate itself from the Bentonville Behemoth.