Ken Fisher from ArsTechnica points out to the profit margins of VHS and DVD products in the movie business. A slide from Metro-Goldwyn-Myers presentation shows that with suggested retail price of VHS tape at $10 the profit margins for the movie company are at 20-30%, while a DVD priced at $20 brings in 50-60% profit margins. Movie theater revenues generated $9.4 billion in 2004, with DVDs bringing in $15 billion.
