DVD Rental Industry Terminology

Allocation

The number of copies assigned to each store, kiosk, or region for a given title, usually driven by forecasted demand and prebook commitments.

We increased allocation for the new Marvel title to 8 units per store. The kiosk’s auto-allocation shifted two discs to the mall location based on last week’s demand. Our distributor cut our allocation due to studio shortages.

Amaray case (Keep case)

The standard plastic DVD case used for packaging rental and retail discs; often called a keep case.

Replace cracked Amaray cases before returning discs to the floor. The studio is shipping the special edition in a clear Amaray case. We switched to eco Amaray cases to cut postage for mail rentals.

ARPU (Average Revenue Per User)

A revenue metric that averages total revenue per active customer over a period; used to gauge monetization of a rental base.

ARPU rose after we introduced premium pricing on new releases. Kiosk ARPU is higher in high-traffic grocery locations. Bundling snacks with rentals increased monthly ARPU 7%.

Barcode (UPC/EAN)

Machine-readable codes on packaging used to identify the SKU for checkout, inventory, and replenishment (UPC in North America, EAN internationally).

Scan the UPC at POS to ensure the correct SKU and price. We added store-specific stickers without covering the EAN. Kiosk misreads caused by wrinkled barcode labels increased exception handling.

Basket size

Average number of items (or dollar value) per transaction; key retail metric for stores and kiosks.

Adding a 2-for-$5 promotion lifted basket size from 1.2 to 1.5. Staff training on cross-sells improved basket size on Fridays. Kiosk UI tweaks nudged basket size by suggesting a catalog title.

Catalog title

Older, library titles outside the new-release window; often used to build breadth of selection and steady long-tail rentals.

We refreshed the catalog mix with family titles for summer. Catalog turns are lower but margins are steady. MOD helps us stock deep catalog without carrying costs.

Churn rate

The percentage of customers who cancel or become inactive during a period; critical for subscription or membership-based rental models.

Mail program churn jumped after we trimmed the grace period. Targeted win-back offers reduced churn in month three. SVOD competition is pressuring churn for casual renters.

Conversion rate

The percentage of visitors or users who complete a rental or purchase out of total traffic.

Only 6% of kiosk browsers rented—A/B test the home screen. Website conversion improved after we added local availability. Staff greetings lifted conversion during peak times.

Cross-sell

Suggesting related or complementary items to increase transaction value (e.g., snacks, older titles, games).

Offer a catalog comedy when a new-release comedy is out of stock. Cross-sell candy bundles at POS to boost margin. Kiosk prompts cross-sell a game to movie renters.

Cutoff time

Operational deadline after which returns, shipments, or processing count toward the next day, affecting late fees and turnaround.

Returns before 8:59 p.m. count as same-day. USPS pickup cutoff at 4 p.m. affects mail turn times. Adjust grace cutoff on holidays to reduce disputes.

Demand forecasting

Predicting rental demand by title, location, and time using historical data, signals (trailers, preorders), and seasonality.

Trailer views and preorders informed the 12-week forecast. Weather-adjusted forecasts raised allocation for snow days. Forecast error was highest on surprise sleeper hits.

Distributor

Intermediary that supplies discs from studios to retailers/kiosk operators, managing prebooks, invoicing, and logistics.

Our distributor offered a revenue-share option on tentpoles. Distributor fill rates dipped around holiday street dates. We negotiated faster ASNs from the distributor.

DRM (Digital Rights Management)

Copy-protection and access-control technologies on discs and players (e.g., region codes, CSS) that restrict unauthorized copying and playback.

Region coding prevented us from renting imported discs. DRM limits duplication; we train staff on anti-piracy. Firmware updates improved DRM compatibility with older players.

Drop box (Return bin)

The physical bin or kiosk slot where customers return rental discs; key for cutoffs, scanning, and turnaround time.

Empty the drop box hourly during peak nights. Sensors in the kiosk drop slot log return timestamps. Weatherproof the outdoor drop box to prevent water damage.

EDI (Electronic Data Interchange)

Standardized electronic messaging between trading partners (e.g., POs, invoices, advance ship notices) used to automate supply-chain workflows.

We receive ASNs via EDI 856 for new releases. Prebook POs go out using EDI 850 and invoices via 810. EDI errors delayed our street-date receipts.

EOL (End of Life)

The point at which a title or format is retired from active rental and removed from assortments, often followed by liquidation.

Move EOL titles to pre-viewed sales bins. Kiosks purge EOL titles to free slots for new releases. Update EOL in the item master to stop reorders.

Exclusivity deal

A contract granting a retailer or operator exclusive rental or promotional rights to a title for a limited window.

We secured a 2-week rental exclusivity with the studio. Competing chains cannot rent this title until our window ends. Exclusivity boosted first-week turns by 30%.

FIFO (First In, First Out)

Inventory rotation method in which the earliest received copies are the first to be rented or processed.

Use FIFO when shelving returns to balance wear. FIFO helps rotate cases so inserts don’t fade unevenly. FIFO in mail operations reduces idle time on older discs.

Fill rate

The percentage of ordered units fulfilled on time and in full; key service-level metric from suppliers.

Our distributor fill rate dropped to 92% on prebooks. Low fill rates forced emergency transfers between stores. Improving fill rate reduced first-week lost sales.

Footfall

The number of people entering a store or passing a kiosk; used to gauge potential demand.

Footfall counters show Friday spikes at 6 p.m. A new anchor tenant increased kiosk footfall 15%. Weather depressed footfall but not conversion.

GMROI (Gross Margin Return on Inventory)

A profitability metric: gross margin dollars generated per dollar of average inventory invested.

New releases have high GMROI in week one. Catalog GMROI improves with multi-night pricing. Removing high-shrink SKUs increased GMROI.

Grace period

Time after the due date when a return does not incur a late fee; a customer-experience lever.

A 3-hour grace period reduces customer friction. Removing the grace period raised late-fee revenue but hurt NPS. Grace timing aligns with kiosk cutoff at midnight.

Hold shelf

Designated area where reserved or prepaid rentals are kept for customer pickup.

Reserve online and pick up from the hold shelf. Items on the hold shelf auto-cancel after 24 hours. Label the hold shelf clearly to avoid misfiles.

Hub-and-spoke distribution

Logistics network with a central facility (hub) that replenishes multiple local sites (spokes) such as stores, kiosks, or mail pools.

Discs flow from the central hub to regional spokes nightly. Mail hubs shorten USPS transit time by a day. Kiosk techs restock spokes on a milk-run schedule.

In-stock rate

Percentage of time a title is available for rent when customers want it; inverse of out-of-stock rate.

Our in-stock rate on new releases was 96% opening week. Alerts fire when in-stock rate drops below threshold. Better allocation raised late-evening in-stock performance.

Inventory turns

How many times inventory cycles through rentals (or sales) in a period; a measure of velocity and capital efficiency.

The action genre turns 2.5x per month. Holiday turns peak in December for family titles. Raising price lowered turns but increased margin.

JIT (Just-In-Time) replenishment

Replenishment strategy that minimizes stock on hand by timing deliveries closely to demand peaks.

JIT deliveries reduce backroom stock at small stores. Kiosks receive JIT swaps before Friday rush. JIT failed during storms; buffer stock is needed.

Kiosk utilization

How intensively a rental kiosk’s capacity is used, measured by slot utilization, transaction throughput, and peak-time performance.

Nighttime kiosk utilization hits 85% during premieres. Low slot utilization signals excess catalog depth. UI updates improved screen-to-rent utilization.

KPI (Key Performance Indicator)

Quantifiable metrics used to monitor operational and financial performance.

Core KPIs: turns, in-stock, late-rate, GMROI. We set KPI targets by store cluster. Dashboards track KPI trends weekly.

Late fee policy

Rules governing charges for overdue returns, including grace, caps, and conversions to sale.

Cap late fees at the purchase price after five days. Communicate late fee policy on receipts and app. Relaxed late fees increased goodwill but dented revenue.

Licensing (content licensing)

Rights obtained from studios to rent specific titles, including terms like windows, territories, and revenue sharing.

Our license allows rental for 12 months post street date. We negotiated revenue share on two A-list titles. Licensing limits rental in certain territories.

Loss prevention

Practices and tools to reduce theft, fraud, and damage (e.g., security cases, audits, exception reports).

Use keepers and spider-wrap on high-risk titles. Staff check discs at return to cut false claims. Analytics flagged abnormal kiosk shrink.

Loyalty program

Structured rewards that encourage repeat rentals and larger baskets through points, tiers, or perks.

Rent 10, get 1 free increased repeat visits. Tiered rewards lifted ARPU among top decile. Points expire after 12 months of inactivity.

Mailer (round-trip mailer)

Envelope used to ship DVDs to and from customers in mail-based rental models; optimized for postage, protection, and scanning.

Lighter mailers reduced postage costs by 12%. Add return barcode to speed intake scanning. Redesign mailers to prevent disc cracking.

Merchandising

Presentation and promotion of titles in-store or on-screen to drive visibility and sales, including placement, signage, and features.

Build an endcap featuring the Oscar nominees. Kiosk hero slots showcase top titles. Eye-level planograms improved family-title rentals.

MOD (Manufacture on Demand)

Discs produced individually when ordered, enabling low-risk stocking of niche or catalog titles.

We source rare catalog via MOD to avoid overstock. MOD titles have longer lead times but steady demand. MOD reduces inventory risk on niche genres.

Net revenue

Revenue after deductions such as discounts, refunds, taxes, and revenue-share or distributor fees.

Net revenue excludes revenue-share payments to studios. Discounts and coupons reduce net revenue per rental. We track net revenue by store cluster.

New release

A title in its initial rental window—typically the first weeks after the street date—driving peak demand and pricing.

Allocate heavily for week-one new releases. New-release pricing is premium versus catalog. Street-date shippers arrive a day early but are held.

On-hand inventory

The physical quantity currently available at a location as opposed to on-order or in-transit units.

On-hand counts reconcile nightly after returns. Kiosks report on-hand by slot in real time. Variances between on-hand and system indicate shrink.

Overdue rate

Percentage of rentals not returned by their due time; impacts availability and customer satisfaction.

Overdue rate spiked after we cut the grace period. SMS reminders reduced overdue rate by 20%. High overdue rate hurts in-stock during weekends.

Planogram

A schematic that dictates title placement on shelves or kiosk screens to maximize visibility and sales.

Follow the studio-approved planogram for launch week. Rotate planograms monthly to feature fresh catalog. Data-led planograms improved discovery.

POS (Point of Sale)

Systems used to transact rentals and sales, capture payments, and update inventory in real time.

POS updates enable contactless payments. POS integrates with membership to apply rewards. POS data feeds daily sell-through and rental reports.

Prebook

Placing orders with distributors for upcoming titles prior to release to secure supply and plan allocations.

Submit prebook quantities six weeks before street. Prebook demand informs allocation and promotion. We raised prebooks after strong trailer engagement.

Pre-street date

The period before the official street date; handling rules allow receipt but prohibit early rental or sale.

Receiving pre-street is allowed; selling is not. Set pre-street blocks in POS to prevent early rentals. Fines apply for pre-street violations.

Resurfacing (disc repair)

Polishing or repairing scratched discs to restore playability and extend useful life.

Run scratched discs through the resurfacing machine. Resurfacing reduced defect swaps by 60%. Log how many resurfaces each disc has had.

Revenue share

A rental model where a portion of rental revenue is paid to the studio or distributor instead of (or in addition to) wholesale pricing.

We kept upfront costs low via a revenue-share deal. Revenue share is 40% for the first eight weeks. Switch from wholesale to revenue share on tentpoles.

SKU (Stock Keeping Unit)

The unique identifier for a specific title/version/package used for inventory, pricing, and reporting.

Each edition and packaging variant gets a unique SKU. Wrong SKU mapping caused pricing errors at POS. Kiosks track on-hand by SKU and slot.

Street date

The official release date when rental or sale is permitted; enforced by studios and distributors.

Do not rent before the street date. Schedule staffing for street-date morning rush. Carriers often deliver one day pre-street—hold in backroom.

SVOD (Subscription Video on Demand)

Streaming subscription services (e.g., Netflix, Prime Video) that compete with physical rentals and influence release windows.

SVOD availability can depress catalog rentals. Delay between street date and SVOD arrival affects windowing. Promote renters-only extras to counter SVOD.

Windowing

The sequencing of a title’s release across channels (theatrical, premium digital, physical rental, sell-through, SVOD), often with exclusive periods.

Theatrical → PVOD → physical rental → SVOD is the current windowing path. A shortened rental window hurt catalog demand. We time promotions to the rental window opening.