(reg. req.): Netflix founder and CEO Reed Hastings on competition from movie download services: “There’s a couple things to understand. The studios will protect DVD sales for as long as they possibly can because it’s now about 60% of domestic revenues, and it’s growing. When the studios sell a DVD, the average retail price is $18. They get about $15 of that….Any smart studio exec says, “I don’t want to put out paperback at the same time as hardcover.” So that gives DVD a long-term advantage — not a three-year advantage, but more like 10, 20. The service that wins the downloading battle is the service that can do both [discs and downloadable files], and that’s what we can do.”
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