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39. Re: Morning Consolidation Apr 3, 2012, 08:40 Beamer
Speaking of movie rentals and how they predate home movie viewing, don't forget that the industry created home movie viewing reluctantly, selling videos solely to rental companies for ~$120 per film. Given that tickets were usually $3 apiece back then, do the math as to why they were ok with it. But since it was secondary and a late development, their accounting was already determined and this was, at best, gravy.
Eventually they realized they can sell to enthusiastic consumers for $30, then realized they could steal from rentals for $5-$10. But, again, at this point their accounting was already done and a movie was already profitable or not. This was still gravy.

And it isn't as if being a popular rental damages other income. TV channels pay more money the more popular the movie was in the rental market, not less because more people had seen it.

Lots of gravy aside from the core business.
Music for the discerning:
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