do movie companies make money when I rent a movie?

Question by xynv38: do movie companies make money when I rent a movie?

I asked this question as a Netflix stock investor. I was surprised the answer wasn’t clear and easily available.I had to do some outside research to find out more. Turns out that when a rental store (or Netflix) buys a DVD, they can rent it out 1000 times without owing the studio any extra money. However they DO have to make deals with the studios to stream movies online. I’m surprised there hasn’t been more news about this, since movie studios are unhappy about not getting a percentage of rentals, but if the future is some sort of internet streaming to some link between your computer and TV, then the studios could get a bigger cut of rentals. Here’s a link to a good article: http://bits.blogs.nytimes.com/2008/01/16/itunes-movie-rentals-and-netflix-online-different-markets/index.html?ex=1358226000&en=6604bfd80b39ac02&ei=5088&partner=rssnyt&emc=rss

Best answer:

Answer by Marshall J
They make money when the company renting out the movie buys the movie from them, but not when you rent the movie.

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