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When you buy a consumer DVD, that DVD only has a license for home viewing. Video stores require a special license to rent out videos. So, I assume netflix would
by bonestamp2 6y ago
When you buy a consumer DVD, that DVD only has a license for home viewing. Video stores require a special license to rent out videos. So, I assume netflix would have to pay that fee at least (which they probably already had for their mail order DVDs).
- twic 6y agoThey wouldn't rent the DVD to you. They'd sell it to you, with an agreement to buy it back later on. First-sale doctrine, baby! They might also need to sell you a short-term lease on that particular drive bay, so that you are playing the DVD in your own home too.
- toast0 6y ago> Video stores require a special license to rent out videos. First sale doctrine covers rentals, but having good relations with studios to get supply of new releases often influences rental establishments to avoid buying discs at retail to rent out. (But, RedBox will sometimes do it)
- ballenf 6y agoThey agreed to stop a few years ago. Redbox used to break the "buy only" window of DVD releases. Meaning you could rent a movie from Redbox before it was available to rent on any streaming service. They buckled from pressure from studios and agreed to stop for the reason you gave. It kind of seemed at the time that they used their right to do this as a negotiating tactic in getting better prices from distributors.