The downside to the traditional rental business is the “rival” nature of physical goods. Rival means that there is a zero-sum game; only one rival prevails. If I am renting your boat, no one else can. If I rent a bag to you, I cannot rent the same bag to another. In order to grow a rental business of physical things, the owner has to keep buying more boats or bags. But, of course, intangible goods and services don’t work this way. They are “nonrival,” which means you can rent the same movie to as many people who want to rent it this hour. Sharing intangibles scales magnificently. This ability
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