Answered Question

popcornch...

M$1 December 21, 2008 06:54 AM

How do brick and mortar movie rental businesses work? For example Blockbuster.

For example, do they have to pay more wholesale (an inflated price) for the DVD's/movies they rent out to hiring customers? Do they need to pay royalties? How do rental box office figures work? Do the movie studios own movie rental companies?

Interesting Question? Yes (0) No (0)

In Movies |
|
Report |
Share

RSS

Best Answer Chosen by Asker

xds

December 21, 2008 07:11 AM

Simply put.

Rental companies pay huge sums to movie studios for the right to rent movies.
Most of the money being exchanged up front.

They rarely call them "royalties" however.

By The way, most of the money studios make is through renting, believe it or not.
Source(s):
Worked in a theater for a year.

Asker's Rating:

• It was helpful. Was looking for a comprehensive one though.

Helpful Answer?

(1)

(0) Tip xds for this answer

Permalink | Report

Other Answers (1)

ssharon

December 21, 2008 07:07 AM

Wikipdeai has the following on the blockbuster article:
"The standard business model for video rental stores was that they would pay a large flat fee per video, approximately US$65, and have unlimited rentals for the lifetime of the cassette itself."

This is followed up with:
"Blockbuster obtained videos for little cost and kept 60 percent rental fee, paying the other 40 percent to the studio, and reporting rental information through Rentrak."
Source(s):
http://en.wikipedia.org/wiki/Blockbuster_Video

Helpful Answer?

(2)

(0) Tip ssharon for this answer

Permalink | Report

Answer this Question

Ask a Question

Top of Page

Buy Mahalo Dollars with Credit Card or PayPal

Top Members

This Week All Time

buddawiggi
2nd Degree Black Belt
24886 Points
M$691.47 Earned
cfinke
2nd Degree Black Belt
22928 Points
M$29.75 Earned
edwardclin...
Green Belt with a Purple Tip
1868 Points
M$48.64 Earned

See All

Most Popular Tags

mahalo(1399)

twitter(924)

iphone(449)

music(435)

google(324)

food(290)

internet(283)

beer(267)

online(266)

money(246)

apple(239)

movies(235)

aotd(233)

facebook(228)

answers(203)

video(200)

health(197)

free(190)

windows(190)

dog(188)

See All

Welcome New Members

nitin908, November 09, 2009 10:57 PM
ashness, November 09, 2009 10:47 PM
estellegemmell, November 09, 2009 10:43 PM
junglyst, November 09, 2009 10:37 PM
gerbertansword, November 09, 2009 10:25 PM

Mahalo Dollars are the currency of Mahalo Answers.

Each Mahalo Dollar costs $1.

Once you earn more than 40 Mahalo Dollars, you can request to be paid via PayPal. Each Mahalo Dollar is currently worth $0.75 when paid out via PayPal. Learn More