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 selling some 20% of the company to the public in 1999. Viacom had wanted to sell Blockbuste…