Q. 1.Is there room for both an independent video rental store such as Video Vault and a large chain such as Blockbuster in this market?
2. If you were managing Video Vault, explain how many copies of Heist, A.I. and Zoolander would you stock?
3. Explain why does Video Vault differ from Blockbuster in number of copies of movies it stocks? Would a studio that owns title to movie be indifferent between stocking policies of Video Vault and Blockbuster?
4. Illustrate what is revenue sharing? Illustrate what impact will it have on number of copies stocked by Video Vault, its profits and on profits of studios?
5. Illustrate what is role Rentrak plays in this scenario? Should Video Vault sign up with Rentrak?