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Q: DVD rental distribution chain ? ( No Answer,   3 Comments )
Question  
Subject: DVD rental distribution chain ?
Category: Arts and Entertainment > Movies and Film
Asked by: sharon_de_salmon-ga
List Price: $20.00
Posted: 19 May 2004 12:22 PDT
Expires: 18 Jun 2004 12:22 PDT
Question ID: 348904
what is the normal and alternative distribution chain(s) of DVD movies
that reach the rental stores ?
I know there are the big hollywood Studios (e.g. Universal,MGM, etc..)
There are disc replicators that make the copies.
The DVDs need to be applied with CSS copy protection.
And I think it goes through local distributors in each country.
My question is what is the exact distribution chain including all the
possible link , and what is their estimated "cut" of the cake .

A suitable answer should be somthing like that :
   the normal chain is:
      studio->distributor->replicator->domestic destributor ->
      ->rental shop->customer
   DVD rental is avarage $5 which devided like that:
     studio $2
     destributor $0.5
     copy protection license $0.2
     replicator $0.3
     local destributor $1
     rental shop $1 ...

  on different rental system like "MovieLink" it is :
     studio->ISP->customer and $3 rental is split as follows ........
Answer  
There is no answer at this time.

Comments  
Subject: Re: DVD rental distribution chain ?
From: tedehrich-ga on 19 May 2004 16:55 PDT
 
There's also:

      studio->distributor->replicator->netflix.com->usps->consumer
   DVD rental is avarage $5 which devided like that:
     studio $2
     destributor $0.5
     copy protection license $0.2
     replicator $0.3
     netflix.com $20/month
     usps $.1
Subject: Re: DVD rental distribution chain ?
From: nenna-ga on 20 May 2004 13:34 PDT
 
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research this question, I suggest that you consider increasing your
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Subject: Re: DVD rental distribution chain ?
From: tiggereh-ga on 23 May 2004 16:08 PDT
 
Hi,

I'm Canadian, but i would assume that the scenerios are similar.  This
scenerio is for non-profit sharing agreements, when the retailer (one
who rents to consumer) purchases DVD outright:

Producer makes product.
Home Video and DVD rights purchased by Distributor.
Master arrives and is used to create DLT (Digital Library Tape) from
which DVD is replicated. (cost of this dependant upon Special
Features, DVD5 or DVD9 and various other items)
DLT is sent to replicator, glass master is created, then DVDs
replicated. (Replication is cheap, glass master is expensive)
REplicated DVDs are packaged and Finished Goods sent back to Distributor.
Distributor sends product to Wholesale Distributor
Wholesale Distributor sends product to Retailer.

Costs:
Rights to film - varied depending on product - from $5,000 to ?????
Creation of DLT - anywhere from $5,000 to $200,000 
Glass Master - $2,000 to $5,000 
Replication - Varies dependant on # of Units
Cost to Wholesale distributor - from 45% to 65% off SRP
Cost to Retailer - from Cost+2 to 10% off retail price

Hope this helps - there are no exacts in this business.  Everything is
dependant upon number of units, cost of product and length of film.

As far as revenue sharing argeements, there are so many different ones
out there that trying to post a % to everyone who has their hand in
the pocker of the consumer is impossible.

Tiggereh

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