Video Rental

blockbuster and Video Rental Industry, Part 3: The antecedent of the End? by ADAM THIERER on SEPTEMBER 19, 2005 In previous posts earlier this course of instruction, I warned that efforts by the federal official craftsmanship Commission (FTC) to block the proposed acquisition of moving picture letting sign of the zodiac Hollywood Video by Blockbuster Inc. would handlely crystallize to the demise of both companies in the long run. Well, excuse me turn I toot my own horn for a moment, simply it appears that I was likely right, and sooner than I expected. Joe Flint and Kate Kelly take in in todays Wall Street daybook (New Signs of Strain for Blockbuster p. B5) that Blockbuster Inc. is facing fresh pressures as signs increase that a sharp decline in the video-rental market is putting a strain on the fusions finances. The companys stock prices fell by 9.7% on Friday, hitting a 52-week low of $4.60 per share. This came on word of honor that Movie Gallery Inc. , the industrys #2 unwavering, was reporting that sales at many of its stores were expected to drop by 8-10% this quarter. Whats happening is clear: technological and market growing are finally catching up with this old occupation and is about to wipe it from the face of the Earth.

With all the new sources of contention out thereNetflix and cheap DVDs at WalMart, online movie transfer services, cable and satellite movie channels plus video-on-demand, recall company entry into the video business, all sorts of handheld smooth media gad sterilises like the PlayStation Portable, and so onits no oddment that Blockbuster and others in this sector are struggling. In fact, Blockbu ster Chairman and chief executive officer J! ohn Antioco admitted to the ledger that the rental industry is in the ice chest and the firms SEC filing last year verbalize that it anticipates a faster than expected decline in the store-based video rental market. So even Blockbuster sees the write on the wall. This is what makes the FTCs efforts to stop the Blockbuster-Hollywood Video merger so troubling. Clearly, this is a sector in the midst of...If you want to get a full essay, order it on our website: OrderEssay.net

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