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How does Hollywood make money form rentals?

When people rent movies, how do the movie companies make money?

How does all that work??

1 Answer

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  • 1 decade ago
    Favorite Answer

    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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