How video clubs make money

Posted by Felix Okoli on Monday March 24, 2014 at 17:2:46:

A video club is a place where movies can be rented for a short period of time for a little fee. Most People prefer making use of video clubs to rent movies than out rightly buying a movie, because it gives them the opportunity to return the movie and rent a new release for a small fee. With the number of video clubs available in each city, it shows that video Clubs are making enough profit for their Owners. Let’s look at some of the ways Video clubs make their money;

- Video Clubs rent out movies to make money, and in true essence, it is more profitable to rent out movies than to out rightly sell movies though you sell at a higher prize. As you continue renting a movie for a small fee, with time you will make more than you would have made from selling the movie as People continue to rent.

- Secondly, Video club owners work hand in hand with major Movie marketers to help sell their movies. They buy their movie collections from Marketers at a cheaper prize and sell to Customers at a high prize. They make real money from this means especially, if the movie is a hit movie.

- Finally, big time video clubs get paid by movie producers to display the posters of their newly released or a yet to be release movie as an advert for buyers to know about the movie. This one works only for big video club house that have greater number of People who patronize them daily