This is pretty stunning news. Walmart is a admitting defeat in the DVD rental business by offering it's rental customers to netflix. According to Bloomberg.com:

Wal-Mart Stores Inc., the world's largest retailer, closed its online video rental business today and agreed to refer customers to Netflix Inc., ceding the fast- growing market to the company that pioneered it. Netflix shares soared as much as 24 percent.

Walmart.com will help rental customers become subscribers of Los Gatos, California-based Netflix, the No. 1 online movie rental service. Netflix will promote Wal-Mart's DVD movie sales, the companies said in a statement today.

Read Wal-Mart to End Online DVD Rentals, Promote Netflix