Company holds a leading position in video rental; and Strong worldwide brand recognition. Poor industry fundamentals; The company's participation in the highly competitive home entertainment industry; The dependence of the company's business on decisions made by movie studios; and A highly leveraged capital structure. The ratings on Blockbuster Inc. reflect the risks of operating in a mature and declining video rental industry, the company's dependence on decisions made by movie studios, its high leverage, and the technology risks associated with delivery of video movies to the home. These risks are partially mitigated by Blockbuster's dominant market position in the video rental industry and good cash flow generating capabilities. Industry fundamentals for the video rental market are weak, and Blockbuster's profitability
