Yes, but then they only get them once they are on general retail sale, and so don't get the newest (to-rental) movies. They pay more when they have an agreement

Yes, but then they only get them once they are on general retail sale, and so don't get the newest (to-rental) movies. They pay more when they have an agreement, but the theory is they make it back from increased rentals (because people can't just buy themselves a copy at the supermarket, and enough people are lazy enough to spend a bit more so they don't have to return it).