Pre-owned market is "defrauding the industry"

[Ail]

Kasz216 said:

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.

 

There is probably a different agreement for resales of those videos they got for dirt cheap with the studio probably getting a cut on that too, depending on hold old the movie is.

Don't forget that resale of used copies of recent movies hurts Blockbuster renting business ( the earlier they sell those movies for cheap, the less likely people are to rent instead of buying..)

 

Still it seems to me like this would be a perfect way to counter sales of used games.

The business of selling used games thrives because of people buying games new on release day and reselling those shortly there after. Those people are not doing anything different from renting the game.

Make widely available cheap rental of games that includes royalties sharing with the publishers and those people will most likely move to renting ( especially if royalty sharing allow renting outlets to have a lot more copies available on release day).

Once they do, the main source of used games sold shortly after games releases will be gone and all will be back to normal......

 

PS : I can't believe Gamefly pays 200$ per game when I have been offered to keep for 40$ a game they shipped me on release day, that would be a huge loss for them. That offer came 4 days after the game release....