What market structure is video rental?

Video rental operates within an oligopolistic market structure. This is characterized by a few major companies dominating the market, such as Netflix and other streaming services, which have significant market power. While there are smaller players and independent rental stores, the overall competition is limited, and firms often engage in strategic pricing and marketing to attract customers. The presence of digital streaming has further shifted the dynamics of the industry, leading to a decline in traditional video rental stores.