movie distributors

[killerasp]

Im wondering if anyone knows the answer to this question. where do movie rental business get their movies from? (ex: blockbuster, hollywood video)

[markrb]

Blockbuster has a direct deal with the Studios.
I don't know about Hollywood video.
Most small Mom and Pops get them from wholesale distributers.

Mark

[Mac Sidewinder]

I'm not sure many people realize that the rental shops also pay through the nose for their videos. Depending on the title, from $80 to $150 per movie. It takes quite a few rentals to make that up.

Mac

[wmansir]

The small mom and pop rentals pay a large amount, but the big boys (blockbuster, Hollywood, and even Netflix) pay much less for the movie, then give a chunk of the rental fee directly to the movie studio.

This allows them to have 100 copies of a new release (and do those 'we're guarenteed to have it' promos) without having to worry about having 98 copies stuck on the shelf three months later.

[markrb]

I know the store down the street from me pays about what we would on the internet for the same movie.
However while DVD's are relatively inexpensive when they first come out VHS movies are very high. It's a numbers game. More people buy DVD's then VHS. Then three months after the movie came out at $100 to screw the video stores the studios put it out for $14.95 for those who actually want to buy the VHS. There are exceptions. When you see a mom and pop store get 5 copies of Snow White on the day it came out you know it's $19.95 or less movir.

Mark

[int 21h]

Originally posted by markrb
I know the store down the street from me pays about what we would on the internet for the same movie.
However while DVD's are relatively inexpensive when they first come out VHS movies are very high. It's a numbers game. More people buy DVD's then VHS. Then three months after the movie came out at $100 to screw the video stores the studios put it out for $14.95 for those who actually want to buy the VHS. There are exceptions. When you see a mom and pop store get 5 copies of Snow White on the day it came out you know it's $19.95 or less movir.

Mark

Uh, that's illegal. When you buy it for $19.95, that is for a single viewing license, only you are allowed to view it. Video stores must buy multiple viewing licenses.

[markrb]

I actually worked as a buyer for a video store for a period of time and there was no such thing as a multiple license for videos. I have never seen a copy of a license of any type with the video. Where is said license? Where did you get this info? I would be curious to see proof of said license. Why is the FBI warning the exact same on this copy then a regular home copy?

Why is it that I was unable to buy Snow White at any other price then what it was mass marketed at? When the movie was released only one price was set for all copies. It did not matter whether it was intended for rent or sale. There was absolutely no distinction and there never has been between videos intended for sale or rent.

In short I don't believe you. I am not calling you a liar or anything. I just think you are mistaken.

If this is true why is there only one set price for DVD's? I can call any of a number of wholesalers and get the same price as what Cdnow charges.
Any person can buy the same VHS copy as the video stores when it is first released.
There is a thing called first run, second run. The first run is meant for video stores or the person willing to shell out the extra dough. The second run is meant for the average consumer and the price is dropped at a point that it will have little effect on the rental market since now studios have a fair amount of interest in it as well. At this point the higher priced video dissapears and is no longer avaiable for sale. I know because many times I needed to replace damaged videos and only the lower priced copy was for sale to video stores.

Mark

[theReal]

In Germany, the movies from the rentals sometimes have different warnings on the DVD as well as in the trailer ("only for rental, not for sale") and sometimes they also "feature" commercials and trailers at the beginning which start playing automatically - something a bought dvd won't have.

I have heard that a rental license for a movie costs around 100 Euro (80-90 USD).

I don't think the Hollywood studios would be happy to have all those video rental stores make money from the normal DVDs without getting some extra money for it!

Maybe the stores only get the cheaper videos later when they had bought a pricey licence before?

[markrb]

There were a series of lawsuites when video stores first started renting movies. After the smoke cleared the law was that it is perfectly legal to rent a movie and there is no such thing as a multiuse liscence here in the U.S. It very well might be different outiside of the US. What the courts decided was that no copies were being made and it is perfectly legal to let someone else use the video even for a fee. It is single use and only one person at any one time is using it. This was a big win for the consumer.
This is why the Studios issue movie at a very high price for the first couple of months and then reduce the price for the mass audience that wishes to by it.
The studios wanted DVD's to be accepted by the public and did not see them being a big rental item. Let's hope that they never decide to change their pricing to what they use for VHS.

@int 21h if you were talking about a country other then the U.S. my comments do not apply. I was only talking about the U.S., but if you meant the U.S. then it is absolutely not illegal in any way to rent a movie no matter what the cost and there are no such thing as multi-use liscenses in this country.

Mark