New Rentrak Warner Details

[jerry24]

Thanks. If you are revenue sharing a title from Rentrak, can you buy the same title in Blu Ray from other distributors?

[moviecritic202]

Since the blu-ray would be diff. part #'s altogether, I'd say yes you could buy it from a distributor.  Although my Rentrak rep has said that they are working on a Warner Blu-ray deal.

[jerry24]

This is nice ...

Warner offers Blu-ray revenue-sharing
PHYSICAL: Customers must sign up for studio's DVD program with Rentrak first
By Susanne Ault -- Video Business, 9/16/2009
SEPT. 16 | PHYSICAL: Warner Home Video has become the latest major studio to offer Blu-ray Disc revenue-sharing through Rentrak.

Terms were not disclosed, but it appears that rentailers will have to sign up for Warner's standard-DVD revenue-sharing before they can revenue-share on Blu-ray, according to store sources.

Warner and Rentrak didn’t immediately respond for comment.

Although the Blu-ray format is growing, most major studios who offer DVD programs with Rentrak have not yet extended revenue-sharing to their Blu-ray titles. The thinking is that consumer interest in high-definition programming is still too low to invest the necessary.

As well as Warner, Sony Pictures Home Entertainment and Lionsgate are the only big studios offering Blu-ray revenue sharing. Several indie suppliers, including Summit Home Entertainment, Anchor Bay Entertainment, E1/Koch and Magnolia Home Entertainment, have rolled out the option.

Economic hardship has given rental new momentum in 2009, which has spurred studios to give more attention to the market. Spending on Blu-ray rentals has jumped 49% over last year, according to Rentrak's Home Video Essentials service.

"Warner has developed an impressive track record with respect to creating and marketing film properties that resonate with the consumer," said Marty Graham, president of the home entertainment division at Rentrak. "We are thrilled to be able to offer both Warner's DVD and Blu-ray Disc new release content to retailers participating in our revenue-sharing program."

Travis Tozier, VP of 29-store Virginia’s Movie Starz Video chain, added, “With the competitive landscape continually changing, having access to a Warner program that offers both copy depth and breadth advantages was a key factor in choosing to participate in revenue sharing."

Additionally, Warner has recently changed the terms offered on its standard DVD revenue-sharing program. One main change is that rentailers are able to sell off a larger amount of Warner stock as previously viewed. But stores will be taking in less per unit revenue on these sales.

For 'Type A' titles, designated as those earning $20 million or more at the box office, rentailers must destroy and/or return 25% of their inventory. The remainder can be sold off upon 29 days after their street date. Previously, stores needed to destroy 70% of their inventory of films grossing $10 million to $50 million, and 80% for films generating over $50 million.

Going forward, stores must pay studios either $5 per previously viewed unit sold or 50% of resulting revenues (whichever is greater). In Warner's past terms, stores were charged a cheaper $3.80 per unit or 38% of resulting previously viewed revenues.

Many retailers disliked Warner's earlier, more destruction-heavy terms, as they believed it would bite into their previously viewed business. But it appears that many continue to object to the revised terms, which may impact stores' support of the studio's new Blu-ray revenue-sharing option.

"These sell-through terms [for previously viewed copies] are too burdensome to me," said Tom Paine, owner of Redmond, Wash. chain DVD Now!