ctceo
Premium
join:2001-04-26
South Bend, IN
clubs:
 ·magicjack.com
 ·AT&T U-Verse
 ·Comcast
 ·AT&T Midwest
 ·HughesNet Satellit..
1 edit | Video Store
Tuvok9-
Video stores pay a hefty price for their copies of video tapes, but the revenue the movie industry gets is from sale of that one tape only. All other revenue generated from rentals goes directly into the pockets of the store owners. Thats the reason I don't rent RPG games from rental stores anymore. Heres an example of the math for a store in my neck of the woods.
For the below example we are calculating just new releases, not video games or older titles.
A copy of a newly released VHS tape costs rental vendors anywhere from $90-140 (sometimes a uniquely higher or lower cost due to popularity or lack thereof). That tape can be viewed a lot of times provided the renters take good care of the tape. Now Lets say that the store bought 35 copies of that movie with 35 in backup. At an average purchase price of $115, thats $8,050 for all 70 copies. Now lets calculate the rental cost @ an average of $5 for 3 days, Thats $1.67 a day not including tax or late fees of ~$5day for every day it's late (6% tax here in Indiana). $1.67 * 29 Days = $48.43 per title. In a year thats $609.55 for just that one tape, or $21,334.25 for the whole set of 35. Since most places set all 70 copies out now thats $42,668.50 in the same time. NOT including the profit made from the tape as an old rental, or when they decide to slim their # of copies down from 70 to 5. In which they make a $585 pure profit (based on used sale price of ~$9). This is all assuming costs of just that one title, Most places have at least 150 or more "NEW" releases at any one time.
-----
The problem with online movie rentals is just that, they are online, not only do we have a severe congestion problem, but a flaw in how they operate the services. Instead of clogging the bandwidth they need to test each connection to a specific movie server, and set a limit, kind of like theatres have a seating capacity. Then they need to have showings set on a very strict time scale. The on-demand thingy for movies is just a tad bit overrated in my opinion. They need to change the way they do things or face severe revenue losses over the coming year. I for one would rather walk to the video store to rent an analog VHS tape than rent some broadband data-pipe full of half-compressed, not-guaranteed, crappy video stream.
--
K8T Neo - 2GB DCDDR400 - AXP 64 3400+ - 3DLabs WC4 7210 - CL Audigy 2 PP - WD SATA150 36GB + Hitachi GST 250GB - Plextor PX708A + Sony CRX300A - Dual 535 Watt PSU's, Full Tower El Cheapo Case W/ Sound Padding & Thermal vents. |
