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Rentrak PPT System

Rentrak's Pay-Per-Transaction ("PPT") System enables retailers who rent home entertainment products (DVD's, Videocassettes, Videogames) to acquire their "new release" rental inventory on a lease versus purchase basis. Under the terms of the lease, retailers pay little or nothing up-front to obtain each unit, and then share a percentage of the rental and previously viewed sales revenue generated by that unit with Rentrak and it's participating content providers. Because retailers are sharing a percentage of the revenue generated by the leased product, the business model is often referred to as "Revenue Sharing"

In order to facilitate the revenue sharing business model for all but the largest rental chains, which have the infrastructure and leverage to command a direct revenue sharing relationship with content providers, Rentrak fulfills a middleman role. The PPT System supplies both content providers and retailers with the technology, information systems and other sales and support services necessary to make the business model viable for both parties.

Content Provider Features and Benefits

Rentrak consolidates the thousands of individual retailers participating in its PPT System into one business partner for each content provider. They negotiate one lease/service arrangement with Rentrak, and then Rentrak's PPT System takes care of the rest. We provide the following business functions:

  • Market your content to PPT System retailers
  • Sell your content to PPT System retailers
  • Manage the purchasing process
  • Order fulfillment
  • Collect POS data
  • Billing of revenue sharing fees
  • Payment Collection
  • Web-based reporting via Studio Revenue Share Essentials
  • Retailer auditing

Because of our technology, revenue sharing expertise and long-standing reputation in the industry as a trusted business partner, content providers can enjoy the incremental revenue and profits the revenue sharing business model can deliver from those retailers participating in our PPT System.

Retailer Features and Benefits

Rentrak's PPT System offers retailers with an opportunity to obtain their new release rental inventory on a lease vs. purchase basis. The benefits to leasing through our PPT System include:

  • Little or no up-front cost to acquire a leased unit, meaning the retailer can be profitable
        from his first or second rental (as opposed to his sixth or seventh rental if the unit was
        purchased at a wholesale cost of $20)
  • Because retailers are profitable from the first or second rental, they can afford to stock
        more copies of the most popular box office releases, and satisfy more consumers during
        the peak rental demand period (the first few weeks of each title's release)
  • The low/no up-front investment also enables retailers to take more risk when it comes to
        stocking movies that fared poorly at the box office, or had no theatrical release at all
        ("direct-to-video" titles)
  • Retailers participating in the PPT System also enjoy improved cash flow because their
        revenue sharing bills are tied to when they generate the revenue. With a wholesale
        purchase, the entire cost of the unit is normally billed to the retailer upon shipment of
        the unit(s)
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