vrl shareholders, page-4

Interesting Article in AFR yesterday about the distribution side of the business.

A vey good calendar year with VRL handling $178M of product. The next tier (UIP / Fox / Col Tristar) were clustered around $125M.

This bodes well for follow through into future years as

A. Current Film product becomes future DVD product and will generate good sales relative the industry over more than a single year
B. Some of the film product being counted in this result is the first installment in 3 parts, namely LOTR..

I have always held the VRL stock, but have just completed switching this into an equivalent exposure in the VRLPA, as the discount has become too great.

ML has the view that the discount level should be more in the order of 5-10%.. (overall Neutral on VRL) I'm more of the view with 10-20%, but close to 50% is too high.