Strategic

1. How is generic environment that affects the Rental Movie Industry in Spain? In the additional material you will find a report for this industry that was made for the United States; it could behelpful to have a guide do realize the PESTEL analysis.
The last political decisions taken by the government such as the VAT rise, which will reduce the profit margin for the rental company, or thedecrease in subventions in the film industry that will produce a reduction of the films produced so there will be less movies to rent.
Another political issue is the concession of TV channels licensesgave by the government some years ago, that have increased the amount of supply. There’s no need of renting if you have channels broadcasting movies.
There is a big competition in the movie productionindustry and at the same time a big crisis which means that lot of production companies are closing or reducing the quantity of movies filmed. So, as said before, if less movies are produced, lessmovies will be available for renting.
For customers, it can be interested to rent movies. Due to the economic crisis of the last years, wages are being reduced and for example going to the cinema ismore expensive so they can find cheaper to rent a movie and watch it at home than taking the whole family to the cinema.
Also from the consumer’s point of view, it is more economic to rent a movie (for2 o 3 €) instead of buying the DVD (say for 20-30€).
Unlike other countries, in which piracy and illegal downloading are fully prosecuted by the law, in Spain is very easy to get a non-original DVDor to watch copyrighted movies for free through the net. It is socially accepted.
Is also important to take into account that society is becoming more familiar with new technologies and we prefer torent a movie from our computer instead of being forced to leave home and waste time.
In addition, consumers are more demanding, and through online renting firms they can watch whatever they want...