Bargaining Power of Suppliers
The bargaining power of suppliers in the industry is high.
This industry relies heavily on the ability to reach agreements with suppliers in order to determine the stock on hand as well as the ability to get new movie titles as they are released. Some movie labels have agreements with certain video/DVD rental companies and do not distribute to other companies, which makes the bargaining power for the suppliers high within the video/DVD industry. Also, production studios control the price, and will set higher prices for blockbuster movies.
The current strategy of movie distributors is to first release movies to cinema theaters, then to retail and rental stores, and finally to television. Release dates of movie titles to rental stores are at the discretion of the movie distributors. Distributors have full control of release priorities based on their incentives. Bargaining power of suppliers is high as there are no substitutes for them.
Bargaining......

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