TeenAnalyst.com

Blockbuster Inc.
Date Added: May 1st, 2004

By Chris Stallman  |  E-mail

   Have you ever rented a movie before? That seems like a rather stupid question because just about every person in this country has. In fact, 86% of US households own at least one VCR. With so many videos being rented in this country, Blockbuster, Inc. stands at the top of it all with 42.2 million active members.

   Blockbuster has grown considerably over the last decade. In the early 1990's, they were operating with 1500 stores but have since grown to over 8500 in 26 different countries.

   The video rental business is also growing. Last year, Blockbuster brought in $5.815 billion in revenues. That's $5,815,000,000! That's the rough equivalent of 1.66 billion movie rentals (5.815 billion divided by 3.5).

   Although they're mostly known for video rentals, they also provide theater services, pay-per-view services, and other television services. All of these contribute to their growing revenues.

   We decided to include this stock in the Young30 stock index for 3 major reasons:

1.) They're well known, reaching 98% of all active movie renters.
2.) Most young investors rent movies from time to time. I know I sure do...I find myself getting in my car to go there all the time.
3.) They're a very family-oriented business without any X-rated movie sections.

   You can visit their website at this address: www.blockbuster.com


Previous Article - Next Article                                                             Like this article?  Bookmark It