Possible entrants to the market would have to start by analyzing segments, and developing industry growth, revenue, and cost projections. The most attractive segments for entrants, because of its growth and disruptive technologies would be online sales and rentals. For a minimum efficient scale (MES), an entrant would have to establish national distribution, with servers in data centers located regionally based on the volume and density of usage in a particular area. This most likely would mean at least one large data center on each coast, possibly more. In 2006 set-up for a distribution center for Netflix—they ended the year with 44—cost $60,000. With the need for only 3-5 distribution centers, assets for startup could range anywhere from right around $200,000 up to $400,000. A company would set their goal MES at this level. With increasing broadband penetration in homes—36% of survey respondents in 2005 and 54% in 2007 reported having broadband connections at home—streaming video is becoming more commonplace and a more popular way to access video entertainment, which means higher distributional bandwidths required in more places to provide adequate streaming speeds. (Mintel) Once costs associated with technology have been estimated, they would need to be compared to potential market share for the given operational capacity based on title volume and variety. Because revenue sharing is the predominant model for streaming video, this reduces inventory costs to zero for a streaming-only entrant. To achieve true efficiency in the market, however, a firm would need to establish distribution to its customers through innovative channels and take advantage of bundling opportunities with broadband and television-connected hardware. Establishing partnerships should be easy because the consumer demands greater selection and there are no exclusive contracts (as of yet) between renters and hardware manufacturers in the industry to deter entrants from grabbing a piece of the pie.