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There's really the exact same copyright-induced inefficiency in traditional video rental places. It always struck me as bizarre that a video rental place could "run out" of copies of a particular film, when at trivial expense they could manufacture (on site) additional copies on demand.

Intuitively it seems like this would result in more money for the rightsholders as well, although maybe the need for video rental shops to vastly overprovision copies of some films made them more money than the alternative.



Isn't video rental (in the US) done under first sale doctrine[1]? That means copyright holders only receive money from selling each physical copy.

[1] http://en.wikipedia.org/wiki/First-sale_doctrine


That's right, but they wouldn't necessarily have to (strictly speaking) sell copies. They could instead license the right to make copies for a fee.

My suspicion is that that fee would be set to extract as much money as possible from the rental stores (cf. Netflix) and that they are/were better off with the status quo.




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