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Morning Consolidation

[Apr 02, 2012, 09:39 am ET] - Share - Viewing Comments

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26.

Re: Morning Consolidation

Apr 2, 2012, 19:47

Krovven

Bhruic wrote on Apr 2, 2012, 17:47: There was, for a long, LONG time, multiple companies dedicated to renting out movies. There still are, in different formats. I can't speak for now, but movie rental product used to be purchased directly from the distributors (studios sold to distributors at a higher rate) at a far higher rate than they were sold to the public for. ie: $30 to retail, $110 to the video store. But they could also choose to return the product back to the distributors to get some money back when they were done with those copies. This is only a brief & incomplete example, as there were many other rules and other business practices behind the model. Bottomline is the film companies got their share. I can't speak for how things are now with movie rentals so I won't try. But the point being is video game rentals never had the same business model that movie rentals had, so comparing them is far from accurate. The film studios were involved in the movie rental business model. Pubs were not involved in the video game rental business model.

Subject

Comment [quote="Krovven"Apr 2, 2012, 19:47][quote="Bhruic"Apr 2, 2012, 17:47]There was, for a long, LONG time, multiple companies dedicated to renting out movies. There still are, in different formats.[/quote] I can't speak for now, but movie rental product used to be purchased directly from the distributors (studios sold to distributors at a higher rate) at a far higher rate than they were sold to the public for. ie: $30 to retail, $110 to the video store. But they could also choose to return the product back to the distributors to get some money back when they were done with those copies. This is only a brief & incomplete example, as there were many other rules and other business practices behind the model. Bottomline is the film companies got their share. I can't speak for how things are now with movie rentals so I won't try. But the point being is video game rentals never had the same business model that movie rentals had, so comparing them is far from accurate. The film studios were involved in the movie rental business model. Pubs were not involved in the video game rental business model. [/quote]

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