How does a video store like blockbusters pay movie studios for renting their films?

Bethany Blocker: that's been years and stuff evolves Netflix got here to city and have their very own machines around grocery markets marking territory next to water fill up machines and propane tank fill up issues. that's maximum no longer ordinary for me to maintain up with technologies yet now that's a waste of money that's even substitute into humorous, to think of i will verify even any action picture that would relate to me. i ask your self if on the tip, The devil grants a curler coaster trip into the fires of hell and is there a action picture i might think of is rather swell...Show more

Corey Rohleder: Blockbusters doesn't have to pay movie studios to rent films. Movie studios make all of their money from ticket sales when the movie is in the theater and individual copies sold (but not rented). Blockbuster merely buys many copies of many movies.If you really want to get to the nitty gritty you can take a look at section 109 of the US copyright law (title ! 17 of the US code). It's frequently referred to as "the right of first sale". It says that once you own a copy of a work (including a movie) that copy is yours to do what you want with. You can give it to someone, lend it, rent it, sell it, even destroy it if you so wish. This is the law that allows Blockbuster to rent their movies (all of them, regardless of which section they're in). (It also happens to be the law that allows libraries to lend books.) What Blockbuster cannot do (and no else legally can either) is make copies of the movies because then the movie companies would not make the money they're entitled to from those copies. The way movie companies make money from video rental stores like Blockbuster is that they must purchase every movie in their store. (e.g. If they have 20 copies of Gladiator, then they had to purchase all 20 of them). That money goes to the movie companies....Show more