WalMart, Jr?

Blockbuster is currently the leader in the movie rental industry with Hollywood Entertainment in second place behind it. Blockbuster has been offering $700 million dollars to buy out their competitor. Movie Gallery Inc has also recently placed an offer for Hollywood Entertainment, though the amount is undisclosed. The future of Hollywood Entertainment is unsure.

With Blockbuster owning 9,000 outlets worldwide and it's nearest competitors only owns 1,920 stores (Hollywood Video) and 2,000 (Movie Gallery) it is becoming apparent we may have a "WalMart" of the movie industry on our hands. Throughout the past few years, in my town at least, I have watched small "mom & pop"-type video rental stores go out of business due to Blockbuster moving into town, they simply could not compete with Blockbusters convenience and selection. If Blockbuster buys out Hollywood Video, what will be next? Soon, Blockbuster could be the only place to rent from. Considering their prices are already one of the more expensive of rental stores, it is scary to think of how they could manipulate prices once they have reduced their competition. Who knows, maybe WalMart will enter the video rental industry... that would make for interesting competition...