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Digital Movie Datapoint Of The Day

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by Felix Salmon
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Jun 05 2007 12:00am EDT

Digital Movie Datapoint of the Day

Remember this next time you hear the movie industry bellyaching about how it "loses" billions of dollars a year to piracy, and sending Arnold Schwarzenegger up to Canada to crack down on camcorders in movie theaters:

"The profitability of the film industry has improved dramatically over the past five to 10 years since the arrival of DVD," said William Kidd, an entertainment analyst at Wedbush Morgan Securities in Los Angeles. "It's less risky and more profitable, so you're seeing interest from outside investors to get involved in these deals."

Could it possibly be that the movie studios are making more money than ever? Maybe even because of, rather than despite, the explosion in digital technologies?

(Via Cowen)

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