Throw out the old video distribution models. Technology has changed the time tables as media companies are throwing out distribution windows. Previously, a film would work its way throught different distribution windows allowing each new platform a chance to take some profit. But the rise of digital downloads and the slow death of dvds has finally eliminated the window between the dvd release of a movie and the VOD and digital download release. Customers seem to like the idea of rental vs purchase and want the immediacy of access. For that online customer, waiting 60 days for the dvd window to end before the film can be made available online, was not customer friendly. It also has led to more illegal means to access these films in digital format, and not paying for that download.
Those that prefer to buy or rent a dvd will continue to do so; those that want to immediately own it, will get it too. WIll there be cannibalization; some, but for the most part, that customer was already making the decision to pick one or the other format. To win back the dvd sales, film studios need to offer that customer that purchases the opportunity to both own the disc and make a downloadable copy for their pc. That would be the best of both worlds.
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