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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme

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To: Emec who wrote (4987)6/18/1998 5:39:00 PM
From: Emec  Read Replies (1) of 8798
 
Some highlights on RENT from Video Business article. Excuse the typos, I am rushing.

Unfettered access to retailer's transaction data is the exclusivity that Rentrak is most anxious to enforce. The paramount importance of data collection is also behind rentrak's relative indifference to Fox' EasyLease program which does not require monitoring of transactions. Rentrak's deal with Blockbuster is not exclusive..because...Blockbuster is quite aware of the value of the transaction data.

Knowledge is power. From the very beginning, rentrak designed its PPT software to capture every transaction registered by a retailer's pos system, whether or not a title was obtained from rentrak. That omnivorous approach serves a number of legitimite ends but it provides the additional-and QUITE ENORMOUS (my emphasis bigfoot) advantage of permitting Rentrak to compile a database covering the entire rental history of every title ever released over the past 10 years-from both a revenue sharing and a traditional distribution perspective. With both studios and retailers now contemplating revenue sharing on an industry wide scale, the value of such knowledge contained in that database is increasing exponentially because NO ONE ELSE HAS ANYTHING LIKE IT. (my emphasis again bigfoot).

Want to do some real world modeling of revenue sharing's impact on the business? Who else ya' gonna call? Want to track the effect of consumer advertising on rental turns? Wh ya' gonna call? Want to know how increased copy depth on one title influences the activity of others in the store? Who ya' gonna call? Want to...well, you get the point.

There are a lot of aspects to revenue sharing that the industry has only begun to lash out, and many are likely to be contentious. But if rentrak is likely to bet the company on any one of them, access to data is the one.

Disclaimer for Bigfoot's benefit: The following is my comment and in no way reflects the view of the author of the article.

The stock is headed back to $8 near term and will be in the teens by the end of the year.


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