
You know, I work there and I'm not even sure. My guess is they either bulk sell them to used DVD dealers or straight-up recycle them. I would lean towards the former because you're required to have the box and artwork when you trade-in and we have to check them for scratches and damages the same as game trade-ins.
Pretty sure they are recycling them; when I traded mine in, the woman at customer service was placing big stickers with the recycle symbol on the front covers on all of the dvds.



