The competition
● Blockbuster, the nation's biggest movie rental company, announced Tuesday that it will eliminate late fees on in-store rentals as of Jan. 1.
● The company had expected to earn $250 million to $300 million in operating profits next year from late fees, but it hopes that increased volume will make up for it.
● Blockbuster has faced new competition - including mail-delivery service from Netflix and movies on demand from cable-TV operators - which come with no late fees.
Market breakdown:
Blockbuster's share of the video rental market in 2003: 32%
Other video stores: 38.6%
Hollywood Entertainment: 12.5%
Movie Gallery: 5.7%
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Supermarkets: 5.1%
Online rental: 3.1%
Other: 3%
Source: The Associated Press