Netflix Uses Speed to Fend Off Wal-Mart Challenge "Wal-Mart has enough money "to send a man to the moon," Mr. Hastings said. "We alternate between stark raving fear and bracing optimism."
So far, Netflix has stayed several steps ahead of Wal-Mart and other threats, like movie services using streaming video technology over the Internet.
Netflix "has taken one step by moving its stores onto the Internet," says Michael Ramsey, chief executive of TiVo, the digital video recorder service, and a Netflix board member. "The next step is moving into electronic distribution."
"I'm worried that we'll be the king of DVD's," Mr. Hastings said, "but then someday that won't matter."