How is DVD rental income split between the studios and the rental outlets?
From what I’ve heard, the video rental stores buy the movies from the studios/distributors at a reduced price. All the rental income made on the movie stays with the video rental store. The rental store can also sell the used copies of the used movies for additional profit when multiple copies are no longer necessary for the stores to carry. The studios/distributors typically make money only through the initial sale of the DVD/video to the stores. Blockbuster Video – being the biggest chain – does make some exclusive deals with some of the studios where they will pay a minimum sum prior to the movie’s video release and pay more if the films are successful – like with Weinstein Co. – but these are not your typically deals. See story below for update on the industry. hope this helps.
