Developed in 1988, Rentrak's proven Pay-Per-Transaction® (PPT) model supplies both content providers and retailers with the industry-leading technology, information systems and other sales and support services necessary to make revenue sharing viable and productive for everyone involved.
For the many smaller second- and third-tier retailers who rent home entertainment products (DVDs, video cassettes, video games) to the marketplace, it is more cost-effective to acquire "new release" rental inventory on a lease-versus-purchase basis. To facilitate the leasing of video product, Rentrak fulfills the role of middleman for all but the largest rental chains, which already have the infrastructure and leverage to command a direct revenue sharing relationship with studios and other content providers (see Studio Direct Revenue Sharing-DRS).
PPT Benefits for Retailers:
Through Rentrak's PPT system, video retailers are given monthly access to a wide selection of box office hits, independent releases and foreign films from the industry's leading suppliers. PPT allows retailers to offer their clientele a wider selection of titles and a greater inventory of popular new releases, thus satisfying customer demand.
PPT customers also receive access to Video Retailer Essentials®, Rentrak's Web-based electronic ordering and product management software that provides 24/7 access to each retailer's rental and sales activity across all of their stores. Under the terms of the lease, retailers pay little or nothing up-front to obtain each unit then share a percentage of the rental revenue and "previously-viewed" sales revenue with Rentrak and our participating content providers.
PPT Benefits for Content Providers:
Rentrak greatly simplifies the landscape for each content provider by consolidating the thousands of individual retailers participating in our PPT system into one business partner. Content providers negotiate one lease/service arrangement with Rentrak and our PPT model takes care of the rest including marketing and sales of content to PPT retailers, order fulfillment, collection of POS data, billing of revenue sharing fees, collection of payments and more.
Under PPT, content providers also enjoy access to Rentrak's RevShare Essentials management software, which lets them easily track the daily, weekly and historical performance of their PPT-leased home entertainment products.
