technical out, value in..., page-6

re: technical out!! absolutely. Thats where I guess we will agree to disagree. There is plenty of growth left in DVD player penetration and ulimately no. of DVDs. The fact is the transition from video to DVD is far from over. The estimate of DVDs from global film libraries is a miniscule 6%. Of course, one must discount the number of films which will never be released or be profitable. But 6% is still a small number in the scheme of things. Not to mention the new streams which have not previously been there for video releases, i.e. all the new cable network content i.e. History channel, Biography channel. American Chopper, reality TV etc. If you look at content, it is a far bigger arena than it was when video was around.

So unless there is some operational or managerial problems with MPH that have yet to be disclosed, the fundamentals in my view are favourable, and will be for some time. Yes, prices will fall, but that is inevitable as volumes go up, and volume growth will more than offset price declines e.g. why else would MPH release DVD singles if the economics were not there ? - this is certainly not a situation where the DVD industry is in structural decline.