rotuma,I don't think the AUD will have a huge impact on the...

rotuma,

I don't think the AUD will have a huge impact on the bottom line of MPH, the cost of producing a DVD is negligible ($1-$2) depending on packaging, qty run etc.

ie. a strong AUD will mean cheaper raw materials but I don't think it will have an enormous effect on the bottom line.

It is quite possible MPH would import DVD's from an overseas source (ie large production run) and package the product here. As it is very cheap to fly in media produced on spindles, rather than in finished packaged goods, and finsih the assembly locally.

It would also be possible (likely) that they manufacture DVD's in smaller runs from the Brisbane plant using some form of DVD replication via a master DVD. DVD replication lines can be bought off the shelf and there are quite a few manufacturing facilities already in Australia (PMI, Sony, Warner etc.)

Manufacturing is only a small part, the value adding is securing licensing, efficient distribution, effecitive marketing and some good sales reps.