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Rentrak Inks Rev-Share Deal with Airport DVD Vendor

By : Erik Gruenwedel | Posted: 19 Jan 2010

Rentrak Corp. Jan. 19 said it signed a revenue-sharing deal with InMotion Entertainment, operator of DVD movie, video game and music CD rental and sellthrough stores in U.S. airports.

Despite pushing its media data-tracking services, Portland, Ore.-based Rentrak continues to generate the bulk of its revenue through pay-per-transaction rev-share DVD/Blu-ray Disc distribution deals with the studios.

With rental revenue from DVD and Blu-ray Disc movies up more than 8% in 2009, InMotion sought a rev-share deal that would allow it greater copy depth and title selections of new releases at its 56 locations in 33 major airports across the country, according to Jeremy Smith, managing director and president of Jacksonville, Fla.-based InMotion.

"While [we] both rent and sell content, we continue to see strength in rental … as a means to grow the [overall] business,” Smith said.

InMotion, which also rents and sells portable DVD players and related consumer electronics such as digital cameras, camcorders, MP3 players, CD players, video games, GPS navigation systems and noise canceling headphones, last summer inked a deal with Blackberry to offer mobile phones, service contracts and accessories in its stores.

Rentrak, which reported a 20% decline in net income for the most recent fiscal quarter, was nonetheless rated among the top 20 fastest-growing U.S. stocks based on Wall Street analysts' average estimate of future earnings growth over the next three to five years.


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