Studios might believe that digital distribution will eat the profits from theaters and DVDs, but that doesn't appear to be happening - at least, the "lost" profits appear to be recouped as part of digital distribution deals, and there is definitely room for improvement in this business model.
I should also clarify that I am not at all advocating digital-only distribution, I am advocating a model that is not physical-media-only. It must be possible to have a happy medium that allows consumers to get their hands on the media they are willing to pay for without having to decide between waiting for regional distribution deals or piracy.
Studios are shooting themselves in the foot by not implementing a more effective way of getting in-demand products to consumers using available digital distribution technology.
Studios might believe that digital distribution will eat the profits from theaters and DVDs, but that doesn't appear to be happening - at least, the "lost" profits appear to be recouped as part of digital distribution deals, and there is definitely room for improvement in this business model.
I should also clarify that I am not at all advocating digital-only distribution, I am advocating a model that is not physical-media-only. It must be possible to have a happy medium that allows consumers to get their hands on the media they are willing to pay for without having to decide between waiting for regional distribution deals or piracy.
Studios are shooting themselves in the foot by not implementing a more effective way of getting in-demand products to consumers using available digital distribution technology.