Musicland and NetFlix Pair Up to Push DVDs.

Musicland Stores Corp. and NetFlix.com began a cross-promotion program with links on NetFlix.com and Musicland_s SamGoody.com retail site. The partnership is designed to promote awareness and sales of the digital versatile disc (DVD). DVDs are about the size of music compact discs, but carry movies and other video and audio content. The two companies are hoping that their joint effort will help grow the overall DVD market, which has seen slow growth in part because DVDs cannot be viewed on traditional VCR machines. NetFlix.com, an online DVD rental site, will point customers to SamGoody.com when they want to buy discs. SamGoody.com will provide the purchase phase of NetFlix.com_s "Test Drive" program, which allows customers to view movies on DVD before deciding whether to buy the disc. In return, all of Musicland_s retail stores --- Sam Goody, Suncoast, Media Play and On Cue -- will offer DVD promotions in conjunction with NetFlix.com, including one free rental from NetFlix with every DVD customers buy at the retail stores. NetFlix.com will also provide coupons good for $2.49 to $3.49 (US$) discounts on DVD purchases with each DVD rental. The sites are "joined by a comprehensive product-by-product, cross-linking program," the companies said. When customers look for a particular movie on NetFlix.com, they will be given the option to rent the DVD from Netflix.com or to purchase it from SamGoody.com. Similarly, customers who visit a page for a specific movie on SamGoody.com will also have the option to rent it from NetFlix.com. NetFlix.com also plans to send e-mail newsletters to customers of both Web sites. The e-mails will be tailored to customers_ individual interests, based on their rental and purchase profiles, and will announce upcoming new releases at both sites.