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The video rental industry has undergone significant changes over the last several years and video retailers
are faced with tough buying decisions when it comes to stocking new releases. To get the most out of your
store today you must employ some degree of revenue sharing, and to an independent retailer that means Rentrak.
Who is Rentrak?
Rentrak Corporation ( www.rentrak.com /
Nasdaq: RENT) is an information management company and the world's largest processor
of rental and sales data for home entertainment media obtained on a revenue–sharing
basis. The company services most motion picture studios and thousands of
retail video rental locations throughout the U.S. and Canada. Rentrak's Pay–Per–Transaction
(PPT) system allows retailers to lease DVDs instead
of purchasing them, which reduces retailer risk, effectively broadens and deepens
video rental store inventory, and increases customer satisfaction. [top]
How does Rentrak's PPT model work?
When you acquire DVD's through Rentrak
you pay a low, one time up front cost per unit, this fee is generally $0 - $1.50.
Then as the product rents you will remit a portion of the rental revenue you collect (35%–45%)
as payment for the DVD.
These per transaction payments (PPT) are made until you sell the movie
or until the end of the lease term. You may generally begin selling the movies after 30 days
The lease term range for any DVD is generally 6 months. [top]
What are the primary benefits of PPT?
Because the movies cost little (if anything)
to bring in initially – PPT enables you to stock more copies
during the critical first few weeks of a release. That means more copies of the hits and a wider selection overall.
Plus, the total cost that you pay per DVD is less then what you pay wholesale, so you can fit more copies into your budget. [top]
When can I place my first order?
Once your account is approved Rentrak will work with you over
the phone to install the Rentrak RPM system on your store’s POS
computer. After the communication link is securely established
you are ready to order. Product orders must be placed for each
location prior to the published Rentrak pre-order date. [top]
When can I sell the PPT cassettes and DVD as previously viewed?
While the studio terms vary, typically 28 - 30 days after the street
date you may begin selling PPT product to the public. Remember
to hold one back for rental though; at least one copy of each title
must be available for rental until the lease term has expired. [top]
How long is the lease term for PPT titles?
The lease term is typically six months. [top]
What happens at the end of the lease term?
At the end of the lease term you have the option to purchase
whatever inventory you have left by paying the ‘end of term fee’ or,
should you choose, you may return the product to Rentrak. All box
art must be returned with all units. Should you wish to return PPT
product before the end of term, you typically can begin to do so after
28 – 30 days. In summary, if a unit can be sold it can be returned. [top]
Is there a minimum order requirement?
You are not required to order anything from Rentrak. When you
decide to place an order with Rentrak or participate in an output
program, you’ll find that most titles have a minimum order
requirement based on the title’s box office performance and
each store’s rental revenue. [top]
How long can a unit stay out during a rental transaction?
All PPT units (with the exception of FOX titles) may be rented up to
seven days in a single transaction. FOX titles may be rented up to
five days in a single transaction. Within these guidelines you may
determine your own rental period. [top]
How do I handle late fees?
When it comes to late fees the studios follow your lead. If you
want to forgive the late fee on a rental, so will the studio. If you
elect to charge a late fee the studio must receive the revenue share
percentage (or minimum transaction fee) that was in effect on the
day that the late fee transaction was paid. [top]
Is there a cost for shipping?
All PPT product is shipped freight pre-paid to your business! In
most cases, VPD handles the fulfillment of the PPT product. If you
want to return PPT units during the title’s lease term you must pay
for the return shipping charges. [top]
What does it cost to open an account with Rentrak?
It doesn’t cost anything to open an account with Rentrak, however
once the account is set up there is a monthly access fee of $33
and a data processing fee of $6 per location to cover the daily
communication of the transaction detail. [top]
How do I open an account?
To open an account submit the Rentrak Agreement, the Credit and
Financial Statement form, and a rental revenue report from your
POS system showing the last three months of rental revenue. Once
your application is received a Representative will contact you. [top]
When do I pay Rentrak?
Rentrak will invoice your account weekly. Our normal credit terms
are Net 21. All invoices are due 21 days from invoice date with the
exception of transaction fee invoices which are due 21 days from
the end of the billing week. [top]
What happens if I get a defective unit?
You may return a defective unit within the first 30 days of its release
for replacement or credit (a return authorization must be obtained
from your account representative). If a DVD becomes defective after the 31st day, simply return it to Rentrak
and we will adjust your inventory accordingly. [top]
What happens if a unit is stolen?
If you discover a DVD that is missing,
stolen or rented and not returned, you ring it up as a sale and pay
the “then current” minimum sell through fee – just as if you sold it
as previously viewed. [top]
Will Rentrak work with my computer system?
Nearly eve ry video retail POS software system is approved for use with
Re n t rak (see “Approved Vendor” list). It is recommended you contact
your POS company prior to installing the Rentrak RPM software to
verify compatibility. In some cases it may be necessary for you to
upgrade your POS software prior to installing the Rentrak RPM. [top]
Can I terminate my agreement with Rentrak?
You may terminate your agreement with Rentrak at anytime by providing written notice to Rentrak. The agreement
will terminate after all of your obligations under the agreement are satisfied and 90 days after the last day of the
lease terms of the PPT units ordered by you. [top]
What is For Movies.com?
When you open an account with Rentrak you automatically receive a website for your business - totally free. That's right!
After working with a Rentrak Tech to set up your site and receive a bit of training on its use, features and maintenance,
you may begin to market your business' on the web through Rentrak's formovies.com website. Once established your customers
will access your specific site (yourstorename @formovies.com.) for new release information, store hours, title searches,
sales, promotions and much much more.
See more details. [top]
What is an output program?
Output Programs offer the absolute best pricing and terms in
exchange for your commitment to order, through Rentrak, every
title the studio releases for the next twelve months. Output
programs are purely optional, but most retailers sign up for more
than one as several major studios make their product available
this way exclusively. [top]
Do I have to do an output program with Rentrak?
You are not required to enter into any output agreements – participation is purely optional. However, many of the best deals at
Rentrak are found under output terms so most Retailers choose to participate in one or more of the programs. [top]
Does every Studio offer output terms?
Not every studio that works with Rentrak offers an output program. It should be noted, however, that a few studios
make their product available exclusively under output terms. [top]
Can I see a studios line up of titles ahead of time?
You can review the title line up for all the output studios in the
Ontrak
magazine . At a glance
you can see exactly which titles a given studio is releasing under their Output Program for the month. [top]
How do I sign up for an Output Agreement?
To enter into an output
agreement complete the agreement paperwork for the studio you wish to participate with and submit it to Rentrak.
Please make sure to read the agreement thoroughly, initial each page (including the matrixes at the end) and sign the last page where indicated. [top]
What are those matrixes near the back?
Near the back of every output addendum is an ordering matrix that breaks down the minimum order quantity for releases under the program. By cross referencing the size (revenue volume) of your DVD business with the box office of the title you will see the minimum number of DVD copies required to order for the particular title. Contact your Rentrak
Representative for assistance in calculating
the maximum. [top]
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