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Rentrak CEO Cites Studios' Tremendous Push on DVD Rev-Share

18 Mar, 2003 By: Joan Villa

There has been a “tremendous push” for all studios to go to DVD revenue-sharing in the last few weeks, Rentrak CEO and chairman Paul Rosenbaum told investors at a presentation Monday.

Speaking at the 15th Annual Roth Capital Partners Growth Stock Conference, Rosenbaum said Rentrak has two agreements in place with major studios and more are imminent. The Portland, Ore.-based retailer last month added a DVD revenue-sharing agreement with 20th Century Fox Home Entertainment to an existing deal with MGM Home Entertainment.

“The prices are going up, the whole atmosphere has changed, the whole business model has changed and, consequently, we have two agreements with major studios on DVD revenue-sharing,” Rosenbaum said.

While some 50 percent of the VHS business has disappeared, Rosenbaum said Rentrak has not lost 50 percent because retailers are turning to the Pay-Per-Transaction model to reduce their risk. However, as more studios offer DVD revenue-sharing, Rentrak will benefit both by serving independent stores and by providing auditing services to major chains such as Blockbuster, Hollywood and Movie Gallery, he added.

The majority of the presentation was about Rentrak's new real-time reporting system for box office receipts, which is being used by five studios.

“Whereas I thought our core business was going to be down as we try to develop these other [box office reporting] areas, I can reasonably assure you that over the next two or three years that won't be the case because the industry has gone to DVD rev-sharing and that's where Rentrak comes in,” he said.

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