It's cheaper for Hollywood to deliver videos digitally than ship DVDs.
More Quotes from Todd Chanko:
While the larger footprint and revenue-generating units provide a great base for delivering video services, there is one catch deployment. Mounting any kind of reliable -- and desirable -- video service is harder than press releases make it seem.Todd Chanko
At this point in time, I see direct-to-consumer digital downloads of DVD titles as being a nice, incremental market for studios. It will not be a wholesale substitution of the retail channel.
Todd Chanko
That is not insignificant. But it isn't enough to dislodge traditional video services such as home video rentals, box office and traditional TV watching, because you only have 25 percent of the American TV households capable of doing it.
Todd Chanko
The Web will become a testing ground for older library content. Older content is desirable because you don't have to build up marketing for it. It's still part of the cultural zeitgeist.
Todd Chanko
This is about Amazon trying to control the cost side of the equation and also trying to control the cost side in a market that is getting increasingly crowded.
Todd Chanko
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