Case Study: Blockbuster Entertainment

Synopsis Blockbuster is the world's largest video rental chain, with about 9,100 company-owned or franchised stores in 25 countries (about 65% are in the US). The company rents more than 1 billion videos, DVDs, and video games at its Blockbuster Video outlets each year. It also operates Blockbuster Online and has marketing partnerships with companies such as Time Warner and DIRECTV. At one point entertainment giant Viacom (now CBS Corp.) owned about 80% of Blockbuster (96% of the voting power) after …showed first 75 words of 859 total…

…showed last 75 words of 859 total…movie collection rather than renting the discs. Stores are capitalizing on the consumer's decision. The rental retail giant Blockbuster Video has chosen to cater to this market by discounting their movies and make them available for sale by offering excellent deals and generous discounts. Reference: http://www.ago.mo.gov/newsreleases/2005/032905.htm http://www.blockbuster.com/homepages/LoadBlockbusterHomepage.action http://www.b2i.us/profiles/investor/ResLibraryView.asp?BzID=553&ResLibraryID=7684&Category=27