Exit barriers are moderately high, keeping competitors in the industry. Long-term assets and inventories make up just over 50% of assets for both Blockbuster and Netflix. Netflix maintains a $3 salvage value in the depreciation of its DVDs with a life-term of only 1-3 years depending on its release date (Netflix Inc.; 2009). This value is likely close to the resale value of those DVDs to the company. Between 4 and 5% of revenues each year also come from the continued resale of DVDs as physical rental segments face divestment in favor of online and pay-per-view rentals. This illustrates that exit barriers on inventory are low, as 52.7% of Netflix Inc.’s total content library value is resold every year from physical inventories. Properties, plant, equipment, and other long-term assets are less liquid and account for around 40% of total assets across the industry.