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KrK
Heavy Artillery For The Little Guy
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join:2000-01-17
Tulsa, OK
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reply to Klendathu

Re: Business model is flawed

I think the really telling quote straight from the Horse's mouth is:

"Hollywood studios still make far more profit from selling movies on DVD, which carries a profit of more than $10 per unit"

In other words, on today's DVD's, everything above about $3 a movie is the PROFIT.

So when a movie sells for $25 on DVD it's really over $20 in profit. I don't know how much the merchant makes in markup, but it's apparent that the Studios make a lot of money on DVD sales and are very happy.
--
"When the day comes that anyone can bend our country’s laws and lawmakers to serve selfish, competitive ends, that day democratic government dies" -- Preston Tucker, 1948 (Yep, it's dead.)

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