Pre-owned market is "defrauding the industry"

[Kasz216]

Ail said:

Kasz216 said:
Ah actually it appears Rental compies do pay royalties.... but on a montly basis based on what movies they have in stock, and not based on every time a movie is rented.

http://www.crc-scrc.ca/english/downloads/PACC_eng.pdf

At least in Canada.

 

We were both right, I did some research.

The way the business worked back in the VHS age in the US is that rental copies would cost a lot more but studio would get no cut out off rentals.

The way it now works for Blockbuster ( who controls over 25% of the US market) is that Blockbuster gets the movies for close to nothing, keeps 60% of the rental fee for themselves and pays the other 40% of the rental fee to the studio. So it's a little different from Canada....

Advantage of the new system being like I said in another post is that you don't have to limit the number of copies of new movies you get due to huge upfront fees and are able to better satisfy the customer's demand...

 

Yeah, that explains why Blockbuster seems to have like 40 copies of some movies.

Still, i wonder why they're able to sell those rental copies after like a month.