Netflix DVDs

Sure you can. What do you think libraries do?

A library will only stock, at most, a few copies per branch. For new releases, Netflix needs hundreds per distribution center minimum. Redbox probably needs about a dozen (WAG) per kiosk. You’re not thinking scale.

Do you think that public libraries have to operate under the same rules as for profit corporations?

[QUOTE=D_Odds]
A library will only stock, at most, a few copies per branch. For new releases, Netflix needs hundreds per distribution center minimum. Redbox probably needs about a dozen (WAG) per kiosk. You’re not thinking scale.
[/QUOTE]

You’re right, Mr. Netflix doesn’t head down to his local Best Buy and purchase 1,000 copies of Inception and start renting them out. But then, neither do most libraries. Both entities buy their stock from distributors.

When it comes to the distribution of copyrighted material libraries most certainly do. They might get more favorable rates, but there is no law or licensing agreement barring anyone from renting out their legally purchased DVDs, CDs or video games.

Don’t you have to buy DVDs specifically meant for rental and pay royalties? I don’t think that you can buy a regular copy and rent it out. All of that legal verbiage in the beginning talks about the DVD being for home use only.

No, you don’t. “Rental pricing” is a remnant of the 80s when movie studios priced videos at around $100 each. They often had revenue sharing agreements with video stores and sold them the videos for a cheaper price so the video stores could make money and videos were seen as “rental only” for a period of about six months.

This disappeared with DVDs and if you go down to your local Blockbuster and check out the DVDs for movies released between 1998-2008, you’ll notice they’re identical to the discs you can buy.