Originally Posted by bruceames
Interesting. Thanks for pointing that out Mal. So if rentals average $1.50 and sell-through $15, then sell-through costs 10x more on average then kiosk or subscription. And as stated if profits are 20-30 times more on sell-through, then sell-through revenue as a whole would be 2-3 times more profitable per dollar spent. Unfortunately for the studios, the OD rental pie has increased from around 30% in DVD's heyday, to around 40% now (thanks to steep sell-through declines while rental remains relatively stable).
I've always wondered what the profit margin is on rental vs. sell-through.
WB spelled it out about 2 years ago. I will need to see if I can dig that up again.
Basically it goes (from highest to lowest) margin:
OD sell through
OD B&M rental
OD Sub rental
And the contribution and margin (percentage) between OD kiosk and EST is massive.