Rent-To-Own Industry Trends

Industry Consolidation

The consumer goods rental industry has consolidated substantially in the past few years. Aaron Rents bought Prime Time rentals in October 2007; Classic Party Rentals, the largest event equipment rental company, has acquired several companies since a change of ownership in 2007; and Rent-A-Center made three significant acquisitions from 2005 to 2006.

Declining Video Industry Revenue

Since 2005, the instore video rental market has declined worldwide, caused by weak titles released for home video, increased competition from mass retailers for video sales, piracy in international markets, and competition from alternative forms of home entertainment. Low prices movie studios charge for DVDs can make movie rentals less attractive. Industry experts expect the decline to continue as new devices for downloading videos are developed for the home market.

Legislation Governing Video Game Content

Violence at schools has increased support for states to introduce legislation governing video game content. In California and Oklahoma, courts struck down laws against enforcing video game restrictions; the first amendment was cited for the reversal. Further legislative attempts are expected to curb youth access to violent video games, which could impact video game rentals.

Growth in Temporary Assignments

Companies in a variety of industries are increasing the number of contract workers they use. Temporary employee assignments in locations other than their home base are also becoming more common. Such workers often find renting furnishings for a short period more convenient than staying in motels. Furniture and electronics are often rented for the period of the contract or temporary assignment.