Video Rental Revenue by Severen

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Video Rental Revenue

POSTED BY: SEVEREN
UPDATED: Wednesday, November 16, 2005 13:24
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Wednesday, November 16, 2005 1:24 PM

I recently wondered how Universal would make money on rental sales of Serenity and I found the following on the web:

"Traditionally, retailers like Blockbuster Video bought recently released videotapes through a
distributor for about $65 a copy and would keep all of the revenue from the subsequent rentals.
Under this old system, customers were frequently "stocked-out" and would either substitute
towards a less popular title or would go home empty-handed. Under the newer system, videos
are purchased by rental outlets for about $8 each and the rental revenue is shared: the video
retailer keeps 45% of the revenue, the movie studio gets 45%, and the remaining 10% goes to
Rentrak, Blockbuster's distributor."

Just in case anyone else was wondering

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