Sony to revenue-share Blu-ray through Rentrak

[WriteSimply]

Read the full article here.

JULY 16 | Sony Pictures Home Entertainment will offer revenue sharing on Blu-ray Disc releases through Rentrak Corp., marking the distributor’s first high-def sharing deal.

Beginning in September, Sony will make all of its new releases and select catalog titles on Blu-ray available under the agreement, which expands the studio's DVD revenue-sharing deal with Rentrak. Neither Sony nor Rentrak would disclose terms of the deal.

“We think it’s important to the expansion of the format to make sure that the rental component of the Blu-ray launch is covered, and now it is,” SPHE president David Bishop said. “Virtually all retailers can have Blu-ray on a revenue-sharing basis. We think it’s important to the retailer, so they are perceived as being on the cutting edge of new technology.”

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[BluFox]

What does this mean??

[Amel]

I have no clue..

[HDJK]

Originally Posted by Amel

I have no clue..

Well thanks for sharing

[WriteSimply]

From Rentrak's FAQ.

Who is Rentrak?
Rentrak Corporation is an information management company and the world's largest processor of rental and sales data for home entertainment media obtained on a revenue–sharing basis. The company services most motion picture studios and thousands of retail video rental locations throughout the U.S. and Canada. Rentrak's Pay–Per–Transaction (PPT) system allows retailers to lease DVDs instead of purchasing them, which reduces retailer risk, effectively broadens and deepens video rental store inventory, and increases customer satisfaction.

How does Rentrak's PPT model work?
When you acquire DVD's through Rentrak you pay a low, one time up front cost per unit, this fee is generally $0 - $1.50. Then as the product rents you will remit a portion of the rental revenue you collect (35%–45%) as payment for the DVD. These per transaction payments (PPT) are made until you sell the movie or until the end of the lease term. You may generally begin selling the movies after 30 days The lease term range for any DVD is generally 6 months.

Basically for a Mom&Pop video shop that wants to attract more BD customers, they can do so without excessive risk of buying the rental discs. It's a great piece of news, especially if you want to support M&P video rental stores.[/quote]


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