[codewizard]

I don't see what makes disks inherently more profitable than digital transmission.

iTunes movie $2 to $9 DVD $15 to $100 see the problem?

[kenavi]

How much does it cost to produce and ship a disk? How much to send it digitally?

The studio's cut is the intellectual property, not the packaging. It's the bottom line that counts, not the top line. And the revenues all come from the same consumers' pockets. If I got $15 to spend, I'd rather get 7, or 8, iTune movies, than 1 DVD.