What is the agreement between motion picture companies and video rental stores?

In: Television and Video, Business and Finance, Movies

[Edit]

Answer

Well, I am not an expert on this but I am pretty sure the Studios get royalties from each rental. That means that they get a percentage of the money from each rental.

If you mean video rental stores like Blockbuster, the movie company doesn't get a royalty on each rental. It would be impossible to track. . . how can the movie company know if True Lies was rented 1 time or 100 times this month? The movie producers DO get a royalty from the sale of each video tape or DVD, and Blockbuster buys a heck of a lot of movies. Many movies actually earn more on DVD than in the theaters.

First answer by Priznit. Last edit by Joni. Contributor trust: 793 [recommend contributor]. Question popularity: 53 [recommend question]

Also see on Answers.com

Research your answer:

Can you answer other questions about audio-video and TV?

Answers.com > Wiki Answers > Categories > Technology > Consumer Electronics > Television and Video > What is the agreement between motion picture companies and video rental stores?

Our contributors said this page should be displayed for the questions below. (Where do these come from

)

If any of these are not a genuine rephrasing of the question, please help out and edit these alternates.

Video rental store? Any future for video rental? How does a video rental affect us? What is needed for video game rental? How much do Camera operatorstelevision video and motion picture earn? Why do movie companies allow video stores to rent their films and do they get a kickback? Why do movie companies allow video stores to rent their films Do they get a kickback?