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by klodolph 4739 days ago
Go read that article again. That article talks about how content creators needed a ~10% profit margin to survive. The introduction of DVDs meant that half of that profit moved into long-term DVD sales, so studios decreased short-term margins and made bets on long term gains. When digital distribution took profits from DVDs, content creators were suddenly running at ~5% margins because the long-term bet had flopped. Or, in summary, we are in the middle of a market correction.

I don't know much about the movie business, and I'm not sure about my predictions. But I wouldn't want to draw conclusions by narrowing my focus to big-budget Hollywood movies with traditional distribution models, especially if the newer content distribution technologies are disrupting that model.

I also wasn't trying to make a statement about absolute amounts.