PORTLAND, Ore. -- Rentrak Corp. and Hollywood Entertainment Corp., both located here, have settled a lawsuit concerning revenues from videos provided to Hollywood by Rentrak, a shared-transaction fee distributor.
wood will issue 200,000 shares of its common stock to Rentrak. While Hollywood will continue to share revenues with the studios on a direct basis, Hollywood will support Rentrak's business efforts to provide data-processing services to studios if requested, and will continue to submit all its rental and sales data to Rentrak.
"We regret the misunderstanding that disrupted our business relationship with Rentrak and look forward to rebuilding it along new lines," said Mark Wattles, chairman and chief executive officer of Hollywood.
"This settlement reinforces the data integrity of Rentrak's systems and builds a solid foundation for future business expansion," said Ron Berger, chairman and CEO of Rentrak.
Rentrak also reported lower than anticipated home-video distribution revenues for the third quarter ended Dec. 31, 1999. Revenues were $25.8 million for the quarter, down 4.4% from $27 million during the same period the year before. The company reported a net loss for the quarter of $986,439, or 9 cents per share, on 10.9 million shares outstanding on a diluted basis, compared with a net loss of $338,364, or 3 cents per share, on 10.7 million shares outstanding in the third quarter of the prior year.
The decline in revenues was attributed to reduced orders for videocassettes offered by Rentrak as customers bought them through alternative programs offered by others.