Sony Cuts Blu-ray Profit Sharing Deal with Rentrak

LordGamer

Haven't seen this discussed here or other media outlets (if I missed it, my apologies).

It would appear Sony is trying to corner the rental market.

Quote:

Sony Cuts Blu-ray Profit Sharing Deal with Rentrak Move will bring Blu-ray to independent rental chains. by Gerry Block July 23, 2007 - Rentrak has announced that it has entered into a revenue sharing agreement with Sony that will bring Blu-ray titles into its rental distribution system. Beginning in September, Rentrak will begin to distribute Sony movie properties on Blu-ray to its network of independent movie rental outlets. Rentrak's distribution system is based upon its ability to lease, rather than purchase, DVD and now Blu-ray movies from movie studios, which it then leases to a network of independent movie rental outlets. The system is permitted by the movie studios due to the fact that Rentrak provides them with a cut of the profits it extracts from fees paid by the independent rental chains. The smaller rental outlets benefit from the ability to stock competitive numbers of popular movies without worry of managing stock overhead and reselling movies when they are no longer popular as rentals. The announcement will signal the introduction of Blu-ray titles from Sony at chains other than Blockbuster, the large rental outlet that announced last month it will exclusively carry Blu-ray rather than HD-DVD. It would appear that Sony has identified rental as a key battlefront in its war with HD-DVD, and has been successful in establishing inroads with these outlets.

Source... http://gear.ign.com/articles/807/807350p1.html

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Stew4HD

...yawn....

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bruceames

Somehow, this doesn't surprise me. If Blu-ray wins, I'll be expecting Sony to be very agressive in expanding their (then) extensive control in the home video arena, due to:

1) historical tendencies
2) confidence and profits gained in success of Blu-ray
3) preparations to secure the next gen format after Blu-ray

With the Playstation franchise already having proven itself as a goliath in secondary use of forced BD player market penetration, and the use of Sony Pictures and their 20% stake in MGM as rock-solid exclusive anchors, having a long arm in the rental business in the next logical move towards a vertical monopoly. I wouldn't be at all surprised if Blockbuster were next on their hit list, and maybe they have already got their foot in the door thru a hush deal...

MikeRox

And they could use BD+ to lockdown all Blu Ray players to force people to buy Blu Ray 2 hey... it's possible!

Chris Gerhard

Again, total nonsense. Sony can't control the rental market, this is a business deal with a company that is trying to develop a rental business, DVD and Blu-ray. Unlike Blockbuster which owns the rentals then sells them after demand is low, this business model doesn't include ownership. Sony needs to have movies that rent well for this to amount to anything for Sony, just as the other studios need to provide titles that rent well to prosper from this deal. Sony is not excluding anybody, other companies are permitted to enter into a similar agreement. This is good for the consumer and good for the industry and I think Universal should see the need to offer Blu-ray releases or explain the reasoning they won't to their stockholders.

The only take I see from the HD DVD group sure requires a very strange view of how business works. Only Blu-ray means every company is going to have to offer quality and value or be left out of the profits, including Sony.

Thanks for another brief snippet of more good news. Momentum is building and I expect to see more and bigger announcements in the coming weeks. I am more optimistic with each announcement of this nature, although each one in and of itself doesn't amount to much. It is the cumulative effect that I am looking forward to.

Chris

Chris Gerhard

Just in case you don't know, the HD DVD group can put data on HD DVD discs that will harm HD DVD players. I don't find these idiotic comments funny and don't believe any company on either side is going to turn players into bricks, but I do see that claim from HD DVD supporters that Blu-ray will do that. I can only hope anybody that reads the nonsense realizes what it is.

Chris

Stew4HD

Chris doesn't find this funny! TFB! Your precious BD is still not a complete format, Toshiba isn't going away, the price of gasoline is going up.. get over it.

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