Distributors, in turn, market the prerecorded video cassettes to retailers, who each sell and rent the cassettes to consumers. At the retail level, prerecorded video cassette revenues approximated $10 billion in 1989 (Savitz, 1989). At the retail level, sales of prerecorded video tapes account for approximately 16 percent of total reve nues, with the remainder derived from tape rentals (Savitz, 1989).
The disparity in between tape sales and rentals is due pri marily to pricing differences. The retail pay for price of a prerecorded video cassette tape of the feature length motion pic ture ranges from $19.95 to $129.95 for your vast majority of releases, while the retail rental costs for the same tapes usually quantity from $1.00 to $3.00 per each 24 hour period (Newcomb, 1990).
The significant price disparity in between the retail sale cost and also the retail rental price for prerecorded video cas sette tape of feature length motion pictures is always cited as the primary reason for consumer preferences for renting (Water man, 1984). There are also other reasons, such as an absence of a would like to build up and maintain a bulky and costly 3video cassette tape library. Thus, consumer preferences with respect to various causes have contributed for the develop ment of a strong and growing industry for ones rental of pre recorded video cassette tapes.
The latest development in the prerecorded video cassette rental marketplace could be the introduction of distribution through vending machines (Reeves, 1987). Prior to this innovation, rentals of prerecorded video cassette tapes have occurred via retail stores, with all transactions processed by employees. Under the vending machine concept, all rental transactions are processed by a vending machine.
Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.
No comments:
Post a Comment