Upstarts such as Redbox and Netflix are putting pressure on traditional movie-rental stores.
More consumers are turning to convenient services like Redbox and Netflix for their movie rentals, making business harder for traditional stores.
Blockbuster and Movie Gallery, the largest companies in the business, have closed hundreds of stores nationwide, with the latter recently filing for reorganization bankruptcy for the second time in three years.
The movie rental industry is highly competitive, with multiple rivals all vying for a piece of the $8.1 billion-a-year business, according to Adams Media Research, based in Monterey, Calif.
Traditional video stores, such as Blockbuster and Hollywood Video, still have the biggest slice of the market — about $3.5 billion, said Tom Adams, president of the research firm.
Read the full story at The Register-Guard.
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