Q&A: How does Hollywood make money form rentals?
Question by Andre The Giant: How does Hollywood make money form rentals?
When people rent movies, how do the movie companies make money?
How does all that work??
Best answer:
Answer by smartdagger
First, rental places pay an inflated purchase price (movies you and I could buy anywhere for $ 15 to $ 20, costs them from $ 100 to $ 125). Second, for every rental a distribution company takes a percentage. The % varies depending on the size of the company and the quality of the movie. Its usually from 15 to 30 %.
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