Not clear to me why you have table CATALOG instead of having that information directly in table VIDEO (unless you are planning to add non-video items? Even so, I think that the VIDEO table is the CATALOG table (and add a "type" column to it so you know if it is a video or a bag of popcorn)
This ER diagram doesn't describe the "manyness" of the connection, unless the double-edge diamonds are many-to-many?
Does a customer have to be a member? Why? In the real world, you convince them by offering something, but not all customers will accept that offer. You may be ok with a special "non-member member" who gets every non-member sale (you can insist on membership for rentals, I suppose). Did you ever deal with Radio Shack when they used to insist on collecting your contact info for every transaction? I didn't notice when it stopped, but it is a relief that they did stop.
Are you sure every video has exactly one vendor? If you design it that way, then videos that mere humans consider "the same" end up with different VideoID. On the other hand maybe the vendor really is part of the item: Pricing might be different, or you might buy rentals from one place and sale items from another.
Ditto employees. Are there some folks who work weekends at store #44 and weekday evenings at store #77?
You want that video ID are never removed from the database. Add some columns that deal with status: in stock / on order / back-ordered / extinct or some such set of options. Of course you want more info too: when ordered, when expected, etc. That way, there's no transaction that has data missing. Bear in mind that modern databases handle multi-millions of records with ease. Calculate how long you need to retain records, how many videos and customers are feasible in that time period, and stop worrying ... :)
Also: think about the queries you will need in order to provide reports. Things like how many are overdue ordered by days over; which members are often late, with statistics; employee transaction records (who's the best salesperson, who's the best rental-pusher, is there an employee who's sales or rental records are associated with good (or bad) members more than other employees? Graph of the sales/rental curve over time of each title (allows a hope of predicting when to move them off the shelves, order more, etc).
I don't know what your doc file holds: I tried opening it in my LibreOffice suite and it hung.