What's a tape worth? (videotape depreciation)

Video Business, February, 1996 by Scala, Betsy

Faster depreciation at Blockbuster Blockbuster Entertainment, the company other publicly held chains have used as a model for their cassette-depreciation schedules, has quietly changed the way it values its video inventory. Since being acquired by Viacom, it has been depreciating its new releases more rapidly than in the past.

Blockbuster stores now depreciate the first four copies of a given title over 36 months, but "the fifth and any succeeding copies of hit titles purchased are amortized over six months on a straight-line basis," according to a Viacom financial report. Previously, Blockbuster depreciated the first nine copies of a title on a 36-month basis, with additional units depreciated over nine months. With variations, smaller publicly...