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Posted by Jeff Rife on 02/22/06 22:38
Derek Janssen (ejanss@nospam.comcast.net) wrote in alt.video.dvd:
> As a Netflix rep once explained, "We can't just run down to our corner
> Suncoast and buy a copy".
Actually, they could.
The trouble is, they can't go and buy *fifty* copies...at least not
without hitting a *lot* of Suncoast stores.
> (As that would technically violate those legal "personal use" Interpol
> warnings we get at the beginnings of the disks, and rental copies have
> to be wholesale-acquisitioned from the studio/company distributors, just
> like any Blockbuster.)
No, they don't...not in the US anyway.
The "first sale doctrine" says that you can do just about anything with
a legally-acquired copy of copyrighted material. Except for a specific
exclusion for software rentals, any other copyrighted material may be
rented, leased, loaned, sold, etc., with no need for permission from the
copyright holder.
But, if Netflix wants to continue to be able to acquire disks at less than
wholesale prices, they won't do this. Basically, the studios sell them
really cheap disks and take a cut of each rental. Netflix *could* bite
the bullet and pay full price for discs and keep all the profits from
each rental, but I guess their accountants feel that it's not as good.
--
Jeff Rife | "I once did a news report on the dangers of
| plastic surgery, and do you know what the
| statistics say?"
| "Yes...that 9 out of 10 men prefer women
| with big boobs."
| "And the 10th guy preferred the 9 other men."
| -- "Just Shoot Me"
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