Free Record Shop, Holland's leading chain of CD, DVD and games shops, announced profits in the financial year ending Sept. 30, 2008 of €12.4 million ($16.75 million).

The results are an improvement on the previous year, when the company posted a loss of €795,000 ($1.07 million). However, most of the profits increase stems from the sale of its shops in Norway.

The company is currently increasing its turnover through an unusual marketing ploy: as of April 25, customers can 'pay' for their purchases in 180 stores with their old DVDs.

"Every household has DVDs that nobody watches anymore, stored away in drawers and cupboards," said FRS CEO Hans van Breukhoven. "We take these back and in exchange our customers can get a nice new CD, film or game."

The value of these second hand discs depends on their current published price to dealer (PPD) and the popularity of each title. There is a maximum of 10 barter DVDs per customer.

"We might anger the film industry," Breukhoven admitted. "We are going to sell the second hand DVDs cheaply, which possibly cuts into the sales of new products."