The precarious economy may be unnerving to many in the entertainment business, but it may very well boost rentals for video retailer Blockbuster. Indeed, the Dallas-based company on Wednesday reported a 5.1-percent increase in revenue during the third quarter, after reporting significant sales growth in the previous two quarters. And while the Dow plunged 514 points on Wednesday, Blockbuster's stock edged up. Michael Pachter an entertainment analyst for Wedbush Morgan Securities, said, "The last three weeks are as bad as you're going to see for consumer confidence, and if someone is on the cusp of joining Netflix and paying a monthly fee or not, they may opt to rent movies à la carte instead." Separately, the Los Angeles Times quoted Pachter as saying, "It's very easy to substitute rental for movie tickets when times are tough."

23/10/2008