DVD Rental: Resilient Cash Cow

Gruenwedel, Erik
March 2008
Home Media Magazine;3/16/2008, Vol. 30 Issue 11, p1
Trade Publication
The article looks at the positive financial results posted by companies in the digital video disc (DVD) rental market during the first quarter of 2008. These companies include Blockbuster Inc., Netflix, and Movie Gallery. Cost reductions and same-store sales growth are two factors that contributed to the earnings growth of Blockbuster. A monthly income of $48.9 million was posted by Movie Gallery, which expects to exit bankruptcy protection in the second quarter. The total revenue of these three companies was over $1.8 billion.


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