Ddawg
8th January 2007, 03:14
Blockbuster shuts down in Peru, piracy blamed (http://news.com.com/Blockbuster+shuts+down+in+Peru%2C+piracy+blamed/2100-1030_3-6147137.html?tag=cd.top)
In a country where it's cheaper to buy pirated DVD than it is to rent one, revenues slumped at Blockbuster franchises.
By Reuters
Published: January 4, 2007, 6:38 AM PST
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The last movie rental outlet operating under the Blockbuster brand name has closed its doors in Peru, where it is often cheaper to buy a pirated DVD than it is to legally rent one.
Randy Hargrove, a spokesman for the U.S.-based Blockbuster, told Reuters on Wednesday the closure was linked to competition (http://news.com.com/Studios%2C+RIAA+target+student+piracy/2100-1025_3-6066118.html) problems, but did not elaborate further.
"I can confirm the last shop shut down a few days ago... For now there are no plans to reenter the Peruvian market," he said.
Illegally produced DVDs (http://news.com.com/Studios+to+OK+copying+movie+downloads+to+disc/2100-1026_3-6104388.html) of major Hollywood movies can be bought (http://news.com.com/Movie+studios+sue+DVD-to-iPod+service/2100-1030_3-6136806.html) for around $1 from street vendors in downtown Lima, while it often costs twice as much to rent a licensed copy.
There were a dozen Blockbuster franchise rental outlets, operated by Video International Peru, in the country two years ago. Local daily newspaper El Comercio said Video International Peru officials last year blamed piracy for slumping revenues of the franchise.
In a country where it's cheaper to buy pirated DVD than it is to rent one, revenues slumped at Blockbuster franchises.
By Reuters
Published: January 4, 2007, 6:38 AM PST
del.icio.us (http://del.icio.us/post) Digg this (http://digg.com/submit)
The last movie rental outlet operating under the Blockbuster brand name has closed its doors in Peru, where it is often cheaper to buy a pirated DVD than it is to legally rent one.
Randy Hargrove, a spokesman for the U.S.-based Blockbuster, told Reuters on Wednesday the closure was linked to competition (http://news.com.com/Studios%2C+RIAA+target+student+piracy/2100-1025_3-6066118.html) problems, but did not elaborate further.
"I can confirm the last shop shut down a few days ago... For now there are no plans to reenter the Peruvian market," he said.
Illegally produced DVDs (http://news.com.com/Studios+to+OK+copying+movie+downloads+to+disc/2100-1026_3-6104388.html) of major Hollywood movies can be bought (http://news.com.com/Movie+studios+sue+DVD-to-iPod+service/2100-1030_3-6136806.html) for around $1 from street vendors in downtown Lima, while it often costs twice as much to rent a licensed copy.
There were a dozen Blockbuster franchise rental outlets, operated by Video International Peru, in the country two years ago. Local daily newspaper El Comercio said Video International Peru officials last year blamed piracy for slumping revenues of the franchise.