Pre-owned market is "defrauding the industry"

[Ail]

Kasz216 said:

mrstickball said:

Ail said:

Don't DVD you rent start with a message telling you they are a rental copy that can not be resold ? ( i know that was the case for VHS, maybe it's different for DVD lol, I never payed attention).

I'm pretty sure used DVD don't...

Don't studio get a cut each time a movie is rented ? I figure they did seeing how every week we get reports of rental revenue and that revenue is usually added to the movie total revenue...

So yeah in essence gamefly would get games for free and make money each time a game is rented, same for the publishers. No risk of buying too many games and noone wanting to rent them for gamefly, and publisher get a cut per rental so they don't loose on revenue either...

Get that kind of rental model working and make it a lot more popular and people won't need to buy used games...

That's the way it works for TV and radio. Each time a movie is shown or a song put on the radio the studio get a sum of money...

Film companies do get a cut of the proceedes for each rental. It used to be, when VHS was king, that studios would release a movie to rental places for months, even years, before it was released to the home market....That way, they earned a large portion of profits before finally allowing people to own the rights to watch the movie as much as they wanted to.

 

Oh they changed that then?  They used to just sell rental copies at 5-6X the normal amount because they figured it'd be easy for people to screw with the numbers and fraud them out of rental sales.

 

 

They have to get a cut of the rental or we woudn't get so many statistics on rental every week ( if they were just selling the copies for more the rental revenue for movies woudn't increase every week, it would just be an upfront fee).

Heck for some movies still the only revenue is sales of DVD and rental as not every movie comes out in the theater...

 

I can't see how with your model the rental business would be profitable seeing how for huge movies most Blockbusters have hundreds copies of the movie and they rent them mostly the first week it comes out...( which is one issue with gamefly right now, they can't afford to buy as many copy of a game as people are asking for and as a result if many people ask for the same game the week it is released, quite a few of them actually have to wait a while before getting it...)