It's true Jersey City, we really do still have a fully functioning movie rental store. VHS, the Texas T of the video age still has it's place on Central Ave in The Heights at a store called Fetch a Flick. Yes, you go and rent VHS tapes, (they have over 800 and trying to get more) just like in the before times. How does the owner mange in this day and age to make this business model work?
Maheshwary's advantage: He gets movies weeks before Netflix. Four major studios – Fox, Universal, Disney and WarnerBros. – must wait anywhere from 30 to 60 days from when their films are released on DVD before they become available to companies like Netflix or Redbox, he explained.
In the past, companies like Rentrak would lease movies to rental stores for about a $1-$2, but the store would have to share their revenue with these companies. Maheshwary scraped that model. "I go to a distributor and I buy them full price," he said. "Let's say each movie I pay $20 for. Now, one movie I have to rent four times to be able to get my money back. Now after that, everything is profit."
A really interesting read...
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