snopes.com  

Go Back   snopes.com > Non-UL Chat > Business Bytes

Reply
 
Thread Tools Display Modes
  #21  
Old 17 July 2018, 09:27 PM
Esprise Me's Avatar
Esprise Me Esprise Me is offline
 
Join Date: 02 October 2005
Location: Los Angeles, CA
Posts: 6,787
Default

I'm not sure they did negotiate anything spectacular, or that Blockbuster had the capital to do what Netflix did. It seems like a lot of relatively new companies with a web- or tech-based business model are securing substantial amounts of funding from venture capitalists with an awful lot of patience; they lose money for years before they finally kill the competition and take over the market. I'll admit I'm not especially well-informed on the subject and would welcome the perspectives of those who are.
Reply With Quote
  #22  
Old 18 July 2018, 02:22 AM
Dasla's Avatar
Dasla Dasla is online now
 
Join Date: 15 April 2010
Location: Brisbane, Australia
Posts: 3,625
Default

Quote:
Originally Posted by ChasFink View Post
They could even have moved into the kiosk area - like Redbox, which still seems to be doing business. Then they could have slowly reduced stores while increasing the online and kiosk areas.

BTW, I'm not sure they had "agreements to rent out movies" per se. I believe it is legal to just buy copies of tapes or DVDs and rent them out without paying royalties, based on the concessions made by the studios in the dawn of the video rental business. Of course, they probably had deals to get early releases, mass discounts, exclusive content, etc. with some distributors.
Quote:
Originally Posted by Beachlife! View Post
I don't think that is true. Movies usually have a disclaimer at the beginning stating that it is only licensed for personnel use.
Back in 84-85 my parents owned a video store* which I worked in. We had a computer system the would list how much a video cost, how many times it had been rented and how much it had made. So as far as I know you just bought the videos and rented it out. Back in those days it cost quite a bit to buy a movie, like a 80 to 100 dollars. So much that very few people bought a movies to keep. Unless you really, really liked it.

*They owned a newsagency a few doors from it and my parents bought it when the owner got into financial difficulty.
Reply With Quote
  #23  
Old 18 July 2018, 05:39 AM
erwins's Avatar
erwins erwins is offline
 
Join Date: 04 April 2006
Location: Portland, OR
Posts: 12,118
Default

Back when there were rental stores, but also a home purchase market, movies would initially be released on tape or disc at a high price. Then, weeks or months later, there would be a second release at a price regular people would pay. The rental stores needed to buy the movies at the high price to be competitive on new releases. The initial release was referred to as being "priced for rental." And then "priced for the home market" I think was the lower price.
Reply With Quote
  #24  
Old 18 July 2018, 12:58 PM
ChasFink's Avatar
ChasFink ChasFink is offline
 
Join Date: 09 December 2015
Location: Mineola, NY
Posts: 831
Default

Thanks, erwins, for summing up the way it worked back then - and Dasla for explaining it worked that way outside the US, too.

I remember when prerecorded videocassettes first came to market, the plan was to sell copies of the movies at high prices to individuals, and have a rental system of authorized dealers who rented out special cassettes that couldn't be rewound at home. Royalties would be paid each time the rentals were played. (This essentially mirrored the structure of royalties with 16mm prints, which used to be the only way you could see movies that weren't current in cinemas or on TV.) When all the little mom-and-pop rental stores just bought the expensive rewindable tapes and rented them out to customers, the industry was caught off guard. They eventually realized the two-tiered pricing system would work, especially when they saw people would buy lots of movies if the prices were low. The income made off of the cheaper sales eventually replaced the expected revenue stream of the rental royalties.
Reply With Quote
  #25  
Old 26 July 2018, 04:03 AM
diddy diddy is offline
 
Join Date: 07 March 2004
Location: Plymouth, MN
Posts: 10,928
Default

Quote:
Originally Posted by ChasFink View Post
They could even have moved into the kiosk area - like Redbox, which still seems to be doing business. Then they could have slowly reduced stores while increasing the online and kiosk areas.
They tried that before the Viacom buy-out with video games. At the time, Blockbuster saw their biggest issue was getting content on release day. They tried a kiosk to create discs on demand but licensees weren't on board with letting Blockbuster do that. The kiosk system for video games failed again due to licenses.

Anyhow, they basically stopped with dealing with new content ventures once Viacom bought them. No need to worry anymore.

Quote:
Originally Posted by Darth Credence View Post
So, wait - are they giving Russel Crowe's jockstrap back to Russel Crowe, or to John Oliver? It's not really clear who they mean by "the owner".
If I remember correctly, Oliver gave it to the store's owner as a gift. I believe I read another article would get the items and might return them to Oliver (Unless he wants to keep it)

Last edited by diddy; 26 July 2018 at 04:08 AM.
Reply With Quote
  #26  
Old 27 July 2018, 02:06 AM
Mouse's Avatar
Mouse Mouse is offline
 
Join Date: 10 July 2003
Location: Oklahoma
Posts: 7,368
Mouse

But if they return Russell Crowe's jockstrap, what will happen to John Oliver's Koala Chlamydia Ward?
Reply With Quote
  #27  
Old 27 July 2018, 02:17 AM
diddy diddy is offline
 
Join Date: 07 March 2004
Location: Plymouth, MN
Posts: 10,928
Default

I am sure the ward will do just fine - it does not have Chlamydia so its not going to die.

Seriously, the money has already been paid - not tied to the Blockbuster store's success
Reply With Quote
  #28  
Old 27 July 2018, 10:53 AM
lord_feldon's Avatar
lord_feldon lord_feldon is offline
 
Join Date: 08 August 2007
Location: Ohio
Posts: 12,387
Default

Quote:
Originally Posted by Beachlife! View Post
I don't think that is true. Movies usually have a disclaimer at the beginning stating that it is only licensed for personnel use.
That means you can't show it for non-personal use. You can do whatever you want with the actual physical medium once you buy it, including renting it out for profit. The big exceptions are (IIRC) music recordings and computer programs, which can't be rented out commercially without the consent of the copyright holder (which is why there wasn't a Blockbuster for music even though you could get it at libraries).

Last edited by lord_feldon; 27 July 2018 at 11:04 AM.
Reply With Quote
  #29  
Old 28 July 2018, 02:19 PM
MichiganGirl's Avatar
MichiganGirl MichiganGirl is offline
 
Join Date: 14 August 2006
Location: Michigan
Posts: 2,178
Default

There are Family Video stores in Michigan. That's the only rental store that I have seen in years. One is just a few blocks from us.
Reply With Quote
  #30  
Old 28 July 2018, 03:40 PM
smittykins's Avatar
smittykins smittykins is offline
 
Join Date: 27 December 2003
Location: Seneca Falls, NY
Posts: 2,662
Default

We also have a Family Video.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Your late fees are waived: Blockbuster closes JoeBentley Business Bytes 39 08 November 2013 11:03 AM
Westminster Bridge is closing down Jenn Fauxtography 39 29 January 2010 11:07 PM
Stores closing at the end of the year snopes Inboxer Rebellion 7 26 May 2008 07:02 PM
Bogus Blockbuster Coupon snopes Snopes Spotting 0 08 August 2007 05:57 AM
Blockbuster coupon Arts Myth Inboxer Rebellion 1 07 August 2007 10:49 PM


All times are GMT. The time now is 07:07 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2018, vBulletin Solutions, Inc.